A steep slowdown in defense spending tied to the end of the wars in Iraq and Afghanistan is undercutting the country’s economic recovery, new government data released Friday revealed.
The report showed gross domestic product grew at an annual rate of 2.5 percent during the first three months of the year — significantly slower than most economists had expected. The culprit? A surprising 11.5 percent annualized drop-off in military spending.
The decline comes on the heels of an even bigger plunge in defense spending at the end of last year that brought economic growth to a standstill. Taken together, the two quarters represent the steepest declines in military outlays since the Korean War, according to JPMorgan Chase economist Michael Feroli.SOME LEFTIES - (EVEN THE ONES WHO HATE AUSTERITY) - WON'T CARE IF THE ECONOMY IS DRAGGED DOWN IF IT'S BECAUSE OUR DEFENSE SPENDING IS CUT BECAUSE THEY ARE SO INTO THE WHOLE POSTMODERN BS THAT "AMERICA IS A BULLY THAT OVERSPENDS ON THE MILITARY" THAT THEY WOULD RATHER AMERICA WAS WEAKER MILITARILY THAN STRONGER BOTH MILITARILY AND ECONOMICALLY..
IF THEY REALLY WANTED THE ECONOMY TO GROW FASTER, AND IF THEY REALLY SAW AMERICAN MILITARY MIGHT AS A FORCE FOR PEACE, THEN THEY WOULDN'T SUPPORT DEFENSE SPENDING CUTS.