CHALLENGING TIMES:

--America is in a state of fiscal and economic crisis. Admiral Mike Mullen observed that our dangerously rising debt represents the greatest national security threat we face. It undermines our ability to have a strong presence on the world stage, weakens our influence in matters of vital national interest, and threatens our long-term ability to fund this nation’s defenses.

--Our debt is 100% of GDP. Forty cents of what we spend is borrowed.   President Obama has surged the debt $5 trillion since taking office.   This rapid accumulation of spending and debt destroys jobs today and threatens our future tomorrow.

--The key to ending this crisis lies in restoring confidence, stability, and growth in our economy through an honest, long-term fiscal plan.  Chasing ever more spending with ever more taxes is only a recipe for decline. 

A FUNDAMENTAL DISAGREEMENT:

--The President, along with Senate Democrats, has pushed for significant spending cuts in only one area: defense.

--The Senate Democrat budget—which they chose never to release (almost 900 days without a budget)—cut $900 billion from defense but only $80 billion from government healthcare spending. That’s over ten times more from the Pentagon than from our growing healthcare entitlements.

--And, of course, everyone here is familiar with the recent debt limit debate. In order for Democrats in Washington to sign off on the plan, they insisted that defense take a disproportionately steep hit. Beyond the $350 billion in potential cuts from the first part of the plan, another $500 billion will be cut if the so-called supercommittee fails to reach its target savings. And Leon Panetta indicated the administration may go as high as $1.1 trillion over ten years.

--As you know, I sit on the Armed Services Committee.  Here’s what Admiral Mullen said when I questioned him about what would happen if this level of cuts went into effect:

“It has a good chance of breaking us and putting us in a position to not keep faith with this all volunteer force that has fought two wars… It will impose a heavy penalty on developing equipment for the future, and it will hollow us out.”

DISPELLING MYTHS ABOUT DEFENSE SPENDING:

MYTH ONE: Defense spending is at, or near, an all time high. While it’s naturally true that defense spending has increased during the war on terror, it has still remained well below the historical norm. It’s averaged about 4% of GDP, around half of the post WWII historical average.

MYTH TWO: The wars in Iraq and Afghanistan have been leading contributors to our deficit. While it’s true that these wars have been expensive, this year’s deficit alone—$1.3 trillion—equals the entire cost of a decade of war in Iraq and Afghanistan. The President’s stimulus package alone costs more than the entire Afghanistan war. In fact, war spending represents only 4% of total outlays over the last ten years.

MYTH THREE: We can balance our budget with steep cutbacks at the Pentagon. Again, while it is true that defense spending is a major portion of our budget, it is currently less than 20% of the annual budget. And, in the future, due to demographic shifts, federal healthcare spending and social security will consume an ever-larger share of overall federal obligations.

MAKING GOVERNMENT LEANER—AND MORE PRODUCTIVE:

--If we take the right steps today we can guarantee a more prosperous tomorrow.   But if we fail to act it will put us on the road to economic disaster and national decline.

--No agency or department is exempt from cuts. Every part of the government must be made leaner and more efficient, including the Pentagon. But cuts must be focused in areas that do not adversely impact our military readiness and our future development.   Defense is a core, vital, constitutional function of government.

--But as we begin to make needed cuts to our bloated federal budget, I continue to remind my colleagues that the Pentagon has not seen the kind of growth that other areas of government have seen, and that most people think, in recent years. (24% in non-defense discretionary in 2 years, 70% increase in education spending over 3 years – including stimulus; 300% increase in Food Stamps over the last ten years / 100% over the last three). 

--Recently in a confirmation hearing with General Odierno, I brought up the question of forces in Europe.  Plans to bring back two Army brigades from Europe were put on hold by the Pentagon and in April the Army announced that it would return only one brigade. That only represents 5,000 soldiers out of 80,000 U.S. troops in Europe.

--I think it's time to have a serious heart-to-heart with the Europeans.  Defense expenditures in many NATO nations are only about 1.1 or 1.2 percent of GDP and very few are meeting the goal of 2 percent of GDP on defense as the NATO obligation.  Meanwhile the U.S. is spending 4 to 5 percent of GDP on defense. Former Secretary of Defense Gates already warned NATO officials earlier this year of the potential for a two-tier alliance; those who conduct “soft” missions and those who conduct the “hard” combat missions.

--It means a lot economically to Germany or other places when we have people spending money in their economy.  It also means a lot to our nation when our people are at home spending money in our economy, number one.  I think it is important that we look at our overseas basing posture and unless there are serious strategic reasons for keeping them overseas, I think we should look to bring more troops home and reduce our presence.

FULFILLING OUR OBLIGATION TO THOSE WHO SERVE:

--As Gen. MacArthur said, the American soldier is one of the noblest figures in all history.  We are determined to ensure that every man and woman who wears the uniform, who bears the wounds and scars of war, who sheds their blood on every corner of the globe—that these brave souls have the support they need.

A DEFINING TIME FOR AMERICA:

--We are in the midst of re-deciding what kind of country we wish to be. Some in Washington would prefer the European model—a large central government, a small military, and a bureaucracy that is increasingly involved in our daily lives. But I still believe America’s greatest hope for the future lies in the principles of limited government enshrined by our Founders more than two centuries ago.

--What sets us apart from other nations is that we don’t rely on the federal government to run our lives, manage our economy, or dictate our future. We would rather extend the scope of our freedom than the reach of our government.

--Our success is found in our people—in their character, in their goodness, in their determination to thrive and grow. Our strength is found in our commitment to law and rights and justice—and our willingness to defend these ideals when we must. And our greatness is found in our liberty—and our determination to preserve that liberty for generations to come.