Essay Defense Spending

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Defense Spending

When the terrorist attacks occurred on 9/11 it did more than just affect the comfort level of American citizens. It had an all around impact on how this country will be run for years to come. The one economic impact that I will concentrate on is that the attacks, arguably, but directly effected the U.S. GDP (Gross Domestic Product) and how the national budget will be handled from that day forward. Since the attacks a number of civil defense programs have been initiated, which leads to more departments asking for an allowance within the national budget. This ultimately is leading to a larger and larger deficit that is quickly encompassing full percentage points of our GDP. There is a debate on how much defense
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As if the 401.3 billion wasn't astronomical enough there is more money hidden within the budget that will go towards the same purposes, which is pulling those funds from civilians. The total of funds that were found hidden within the budget totaled to an actual figure of about 596.1 billion dollars (Higgs Pg. 3) with a breakdown of it as follows (in billions of dollars):
Department of Defense- 344.4
Department of Energy- 18.5
Department of State- 17.6
Dept. of Veterans Affairs- 50.9
Dept. of Homeland Security- 17.5
Dept. of Justice- 2.1
Dept. of Transportation- 1.4
Dept. of Treasury- 0.1
National Aeronautics and Space- 0.2
Other National Agencies- 4.7
Past debt financed of security- 138.7
Total= 596.1 Billion Dollars With the numbers totaled the defense budget is currently sitting at a solid 3.5 percent of our GDP and there are still questions on how much more we can put in to make this country safe. The White House is calling for more money to be spent on national defense and their economists say that the United States can withstand a gross spending of somewhere around 9 to 10 percent of our GDP. The money to pay for any

extra spending mostly comes from the high-end taxes that if they weren't being spend would be saved and used to produce

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