Defense Spending Strong Under Obama Administration

NEWTOWN, Conn. --- The election of Democrat Barack Obama as the next American president has left onlookers questioning the future of U.S. defense spending. The Pentagon under the Bush administration witnessed unprecedented budget growth as a result of towering base budgets combined with hundreds of billions of dollars in supplemental wartime funding.>> Given the governments growing deficit and the fragile state of the U.S. economy, these soaring budgets would have been deemed unaffordable no matter which party entered the White House. The tremendous spending increases of the last eight years therefore appear to have come to an end, though that is not to say that sweeping cuts are looming, said Shaun McDougall, Forecast Internationals North America Military Market analyst.>> Having the biggest impact on topline spending in the near future will be the war in Iraq, as overall levels of defense spending will gradually decrease as violence declines and the pace of operations winds down. It should be noted, however, that the military will still require significant recapitalization funds to replace lost or damaged equipment even after combat troops are withdrawn, stated McDougall.>> Obama will stand by this critical investment, though he will seek to end the days of supplemental spending bills by consolidating all defense appropriations. This move will provide improved oversight of wartime funds, and could put an end to some questionable procurement strategies.>> Iraq demonstrated the unpreparedness of U.S. forces to sustain prolonged ground operations, as proven by extended deployments in the face of falling readiness levels across the board. In response to these shortfalls, Obama will continue a plan initiated by President George W. Bush to expand the Army and Marine Corps by a combined 92,000 members, which will require a substantial financial commitment in terms of both personnel costs and associated equipment. The National Guard and Reserve forces have also been strained by the wars, and will require continued investment as they prepare to face future domestic and foreign challenges.