Hagel’s proposal to cut the military spells trouble for the stock market, right? Actually, no. The headlines about plans to reduce the size of the Army by 6 percent obscured the news that, over the coming years, the actual level of defense spending is set to rise slowly, from $535 billion in 2016 to $559 billion in 2019. And that’s before members of Congress move to shelter their districts’ pet projects.
In fact, what most analysts have missed is that the reduction is strictly in the number of active personnel, not overall military expenditures.
Joyner supports the cuts:
Hagel and the Joint Chiefs have repeatedly emphasized—correctly, in my judgment—that it’s far preferable to take the risks associated with a small but highly trained and well equipped force than those associated with a larger but “hollow” force…
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