How the Federal Government Funds Endless Wars
Republicans and Democrats join together to spend more money.


There's no choosing between guns and butter in Washington. With virtually no limit on what the federal government can spend other people's money on, policymakers have been loading up on both for decades, and they aren't about to let limits that they themselves created get in the way. The pesky budget caps that were accidentally installed in 2011 put a modest brake on spending, but the recent passage of the Bipartisan Budget Act of 2015 increased allowable funding under those caps—for the second time. And sure enough, the deal promises more guns and more butter.
The deal gives Republicans and Democrats an extra $80 billion in funding—split evenly between defense and non-defense—to play with over the next two fiscal years. That's bad enough. But what's really galling is the continuing manipulation of an account that exists to fund America's never-ending wars without Congress' having to worry about finding a way to pay for them with cuts elsewhere.
The budgetary device called the Overseas Contingency Operations account, or "war fund," started off as a supplemental appropriation to fund the military response after the Sept. 11, 2001, terrorist attacks. But it quickly became a slush fund that allows policymakers to spend gobs of money with little oversight and fatten the Pentagon's base budget when the spending caps are put into place, seeing as OCO funding is exempt.
How much funding has been run through this war fund? Including the $74 billion in OCO funding that the budget deal assumes for the current fiscal year, Washington will have used the fund to skirt budget protocol to the tune of over $1.75 trillion since 2001. Regardless of how one feels about U.S. foreign policy, to make a mockery of the already mock-worthy federal budget process for 16 years running is disgraceful even by Washington's bottomless standards.
The OCO has been particularly kind to hawkish Republicans and their allies in the military-industrial complex. And now, thanks to that no-Pentagon-budget-is-too-big crowd, Democrats—who have been lamenting the budget caps' restrictions on non-defense domestic spending—have received a second gift in the budget deal. Of the $1.75 trillion in OCO funding since 2001, 93 percent has gone to the Pentagon. But the rest went to the State Department and other diplomatic efforts ostensibly related to the wars the OCO account was created to fund. An average of $7 billion has gone to these non-Pentagon buckets each year. Under the deal, that amount will more than double, to almost $15 billion both this fiscal year and the next.
What that means is that Democrats (and their Republican allies) can cut back on normal funding for the State Department and related agencies that are subject to the cap restrictions, because they have that extra "war money" to make up the difference. They can then use the budgetary room freed up by shifting standard funding under the cap to exempted OCO funding to spend more money on all sorts of domestic programs.
Confused? That's OK; it's supposed to be confusing.
Indeed, the political class thrives on being able to pull the wool over the eyes of the electorate. Just know that unless you're on the receiving end of the bipartisan largesse contained in the budget deal, you're getting the short end of the stick.
COPYRIGHT 2015 CREATORS SYNDICATE
Editor's Note: As of February 29, 2024, commenting privileges on reason.com posts are limited to Reason Plus subscribers. Past commenters are grandfathered in for a temporary period. Subscribe here to preserve your ability to comment. Your Reason Plus subscription also gives you an ad-free version of reason.com, along with full access to the digital edition and archives of Reason magazine. We request that comments be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of reason.com or Reason Foundation. We reserve the right to delete any comment and ban commenters for any reason at any time. Comments may only be edited within 5 minutes of posting. Report abuses.
Please
to post comments
But think of all the money the gun and butter manufacturers are circulating back into the economy!
I mean, all the government would have to do to stimulate the economy is nuke all the major cities! That would create wealth for all the doctors, construction companies, and nuke manufacturers! It'd be great! We'd all be rich!
As tongue-in-cheek as this is, Paul Krugman actually advocates for similar policy prescriptions.
I'm making $86 an hour working from home. I was shocked when my neighbour told me she was averaging $95 but I see how it works now.I feel so much freedom now that I'm my own boss.go to this site home tab for more detai....
http://www.4cyberworks.com
This is a form of government know as "confusocracy".
Forget being confused about the congressional budgetary process...
What's really scary about the federal government's budget and our current monetary policy is that government (over)spending and the federal reserve's near-zero interest rate policy are all that is keeping us from sliding into an epic recession/depression. Essentially, our country's economic activity can't in all likelihood support the (tepid) growth we're supposedly experiencing; it's all being driving by government spending and cheap central bank money.
What happens when the business cycle slows again?
Think of all the promotions for the war bureaucrats this will fund. "War is a racket". General Smedley Butler
Some call it a "budget deal",how about the following. The Screwing of The People Via This Budget Racket
The Pentagon budget is the single largest source of illicit political money. Has been for decades. There is at least one and usually many more defense department contractors in EVERY congressional district. Once you understand how the money flows, there can be little doubt that we send our brave young men and women in uniform off to war for the purpose of keeping our corrupt politicians in office. Stop voting for incumbents. They are all parasites.
It's pretty good information to the readers and easily get useful thoughts who reading this blog. I like to read this kind of informative blog post to gain good understanding and even I can have good writing ideas. Sometimes I am having writing kind of works to finish as an academic task. So i try to read this type of posts online to get more writing knowledge and general knowledge. I can suggest you this best essay writing service to having good support to finishing this kind of writing works.
It's pretty good information to the readers and easily get useful thoughts who reading this blog. I like to read this kind of informative blog post to gain good understanding and even I can have good writing ideas. Sometimes I am having writing kind of works to finish as an academic task. So i try to read this type of posts online to get more writing knowledge and general knowledge. I can suggest you this best essay writing service to having good support to finishing this kind of writing works.
Why does Veronique hate the military so much?