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	<title>Topic:Medicare &#8212; Global Security Review %</title>
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		<title>Escalation Dominance Does Matter</title>
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		<dc:creator><![CDATA[Joe Buff]]></dc:creator>
		<pubDate>Thu, 09 Jan 2025 13:12:17 +0000</pubDate>
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					<description><![CDATA[<p>In a reply to a recent article in Global Security Review, which advocated for American escalation dominance, Katerina Canyon, Executive Director of the Peace Economy Project, challenged the importance of escalation dominance, instead advocating for a reduction in nuclear weapons and an increase in domestic spending. Canyon is wrong on three points: the history of the [&#8230;]</p>
<p><a href="https://globalsecurityreview.com/escalation-dominance-does-matter/">Escalation Dominance Does Matter</a> was originally published on <a href="https://globalsecurityreview.com">Global Security Review</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>In a reply to a <a href="https://globalsecurityreview.com/the-crucial-role-of-escalation-dominance-and-narrative-control-in-nuclear-deterrence/">recent article</a> in <em>Global Security Review</em>, which advocated for American escalation dominance, Katerina Canyon, Executive Director of the Peace Economy Project, challenged the importance of <a href="https://globalsecurityreview.com/escalation-dominance-is-a-flawed-framework/">escalation dominance</a>, instead advocating for a reduction in nuclear weapons and an increase in domestic spending. Canyon is wrong on three points: the history of the Cuban Missile Crisis, who started the nuclear arms race, and the need for nuclear cost cutting.</p>
<p><strong>The Cuban Missile Crisis</strong></p>
<p>Canyon begins her article by employing the Cuban Missile Crisis as an example of where diplomacy rather than military force carried the day. Her explanation is simple disinformation and misunderstands how nuclear deterrence works.</p>
<p>Early in the crisis, President John F. Kennedy moved <a href="https://www.historynet.com/the-end-was-near/">nuclear-armed bombers</a> to Air Force bases in Florida, lining them up wing tip to wing tip, as a visible display of the nuclear hell both Cuba and the Soviet Union would face if Nikita Khruschev did not remove nuclear weapons from Cuba. That signal was seen by the Soviets.</p>
<p>President Kennedy also called the then-recent deployment of Minuteman I intercontinental ballistic missiles (ICBM) his “<a href="https://www.intothelittlebelts.com/things-to-do/historic-points/ace-in-the-hole">ace in the hole</a>.” He credited his ICBMs with forcing the Soviets to back down. Minuteman I was very much American escalation dominance that the Soviets could not match.</p>
<p>He also implemented a blockade around Cuba. When the Soviet submarine <em>B-59 </em>attempted to run the blockade, the USS <em>Beale </em>depth charged the submarine. Rather than launching its nuclear torpedoes against the <em>Beale</em>, B-59 retreated.</p>
<p>Contrary to Canyon’s assertion that diplomacy carried the day, it was military strength and nuclear superiority that carried the day. General Secretary Khruschev knew that the United States had a superior nuclear arsenal and backed down.</p>
<p><strong>Arms Racing</strong></p>
<p>Canyon is also concerned that the United States will invite an arms race should it develop the full spectrum of capabilities that are required to effectively deter China, North Korea, and Russia. The reality is the race has already begun. The only participant that is yet to leave the starting block is the United States.</p>
<p>Russian strategic nuclear modernization is nearly complete, with Russia also maintaining at least a 10 to 1 advantage in theater nuclear weapons. China is adding at least 100 new nuclear weapons per year and will soon outmatch the United States.</p>
<p>North Korea is now capable of striking the homeland with intercontinental ballistic missiles. According to Kim Jung Un, North Korea will build an arsenal of 500 nuclear weapons.</p>
<p>It is only the United States that is yet to field a new nuclear delivery system. The newest American nuclear delivery vehicle, the B2 bomber, is three decades old.</p>
<p>Contrary to the aspirations of nuclear disarmament advocates in the United States, not a single nuclear-armed adversary is willing to follow the United States down the path of disarmament. The post–Cold War era, three decades now, is a glaring example of the failures of the disarmament delusion.</p>
<p>Canyon is completely wrong when she asserts that China and Russia are modernizing and expanding their nuclear arsenals because of American nuclear modernization. They began their own nuclear modernization and expansion efforts long before the United States began its effort to replace aging weapons with new variants.</p>
<p>It was not American nuclear weapons that drove Chinese and Russian modernization to begin with. It is American superiority in conventional precision-guided weapons, which neither adversary can match, that led them to follow a strategy like President Dwight Eisenhower’s <a href="https://www.britannica.com/topic/New-Look-United-States-history">New Look Policy</a>.</p>
<p>For some reason, Canyon claims that the ability to maintain nuclear escalation dominance is advocating “unchecked militarization.” Nothing could be further from the truth. Nuclear forces are a deterrent to conventional military aggression. Historically, great powers wage war four to six times per century, killing millions in the process. Nuclear weapons put an end to great power war and led to a more than 90 percent decline in conflict-related casualties. Lest Canyon forget, the last great power war, World War II, led to the death of 70 million people and saw the United States spend almost half of its gross domestic product fighting the war.</p>
<p>Canyon, like many in the disarmament community, mistakenly believes that weakness leads to peace. They incorrectly impose their own aversion to conflict onto Xi Jinping, Vladimir Putin, and Kim Jung Un. In reality, these authoritarians, who are actively seeking to topple the American-led international order, only see American passivity as weakness and an opportunity to coerce the United States.</p>
<p>Peace through strength is no mere slogan. It is the most accurate and effective way to deter America’s adversaries and ensure they never believe that they can achieve their objectives through conflict.</p>
<p><strong>Defense Spending</strong></p>
<p>Canyon also argues that defense spending is too high and the need to modernize all three legs of the nuclear triad is wasteful. Instead, she proposes increasing spending on social programs. Any examination of federal, state, and local budgets illustrates that Canyon is again incorrect.</p>
<p>In 2024, the federal budget was <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/">$6.75 trillion</a>. Of this, <a href="https://usafacts.org/articles/how-much-does-the-us-spend-on-the-military/">$841.4 billion</a>, 14 percent, went to defense spending. Of defense spending, about $50 billion was dedicated to current operation and modernization. This was about 6 percent of defense spending and less than 0.1 percent of federal spending.</p>
<p>Federal, state, and local governments spent more than $10 trillion in 2024. The federal government alone spent <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/">69 percent of its budget</a> on social programs. That is approximately $4.6 trillion—more than all federal revenue collected ($4.4 trillion) in 2024. Excluding federal pass-through funds, state and local governments spent an additional $4 trillion in 2024. State and local governments spent 65 percent of their budgets on social programs—another $2.6 trillion. Federal, state, and local governments spent <a href="https://www.cato.org/cato-handbook-policymakers/cato-handbook-policymakers-9th-edition-2022/poverty-welfare">$1.8 trillion</a> just on anti-poverty programs—more than twice the defense budget.</p>
<p>According to the Centers for Medicare and Medicaid Services, the federal agency that runs these two programs, Medicare and Medicaid lose more than <a href="https://www.cnbc.com/2023/03/09/how-medicare-and-medicaid-fraud-became-a-100b-problem-for-the-us.html">$100 billion</a> every year to waste, fraud, and abuse. That is twice the cost of the entire nuclear enterprise. Surprisingly, Canyon is not bothered by this and other waste, fraud, and abuse in federal, state, and local programs. They are affordable. In her mind, it is nuclear spending that is breaking the bank.</p>
<p>The simple fact is that social justice warriors have never seen a dollar they do not want to spend. After all, more than 100 percent of federal revenues are already spent on their preferred programs. State and local governments spend two-thirds of their budgets on social programs. Americans also spend more than <a href="https://home.treasury.gov/news/press-releases/sm1040">$450 billion a year</a> in charitable donations. Despite the spending on social programs, the demand only grows.</p>
<p>Defense spending, however, is at a 70-year low. At 3.4 percent of gross domestic product, these rates of defense spending have not been seen since prior to World War II.</p>
<p>Thus, when Canyon argues that too much is spent on defense and nuclear modernization, she is flat wrong. It is just the opposite.</p>
<p>Americans now live in a nation where social programs crowd out defense spending at a time when avoiding war is only possible by fielding a military and a nuclear force that is powerful enough to not only deter Russian aggression, but Chinese, North Korean, and Iranian as well. That can never be done by good intentions. Weakness is provocative. Peace comes through strength and an unwillingness by aggressive adversaries to challenge the United States.</p>
<p>Canyon is wrong in her reading of history, wrong in her understanding of strategy, and wrong about government spending. The time is now to have a guns-versus-butter debate because it may soon be too late.</p>
<p><em>Joe Buff is a Senior Fellow at the National Institute for Deterrence Studies. The views expressed are his own.</em></p>
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<p><a href="https://globalsecurityreview.com/escalation-dominance-does-matter/">Escalation Dominance Does Matter</a> was originally published on <a href="https://globalsecurityreview.com">Global Security Review</a>.</p>
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		<title>The US Must Handle Its Fiscal Challenges</title>
		<link>https://globalsecurityreview.com/the-us-must-handle-its-fiscal-challenges/</link>
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		<dc:creator><![CDATA[Carl Rhodes]]></dc:creator>
		<pubDate>Mon, 10 Jun 2024 12:11:55 +0000</pubDate>
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		<guid isPermaLink="false">https://globalsecurityreview.com/?p=28076</guid>

					<description><![CDATA[<p>The United States government finds itself in an unprecedented financial situation. Over the next 12 months, the amount of public debt held by the federal government will exceed the size of the nation’s economy. As a fraction of gross domestic product (GDP), debt has grown to a size not seen since the end of World [&#8230;]</p>
<p><a href="https://globalsecurityreview.com/the-us-must-handle-its-fiscal-challenges/">The US Must Handle Its Fiscal Challenges</a> was originally published on <a href="https://globalsecurityreview.com">Global Security Review</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>The United States government finds itself in an unprecedented financial situation. Over the next 12 months, the amount of public debt held by the federal government will exceed the size of the nation’s economy. As a fraction of gross domestic product (GDP), debt has grown to a size not seen since the end of World War II. <a href="https://www.cbo.gov/publication/59710">Projections from the Congressional Budget Office</a> (CBO) indicate debt will continue to grow to 130 percent of GDP by 2040.</p>
<p><img fetchpriority="high" decoding="async" class="wp-image-28079 aligncenter" src="http://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal1-300x168.png" alt="" width="590" height="330" srcset="https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal1-300x168.png 300w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal1-1024x572.png 1024w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal1-768x429.png 768w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal1.png 1212w" sizes="(max-width: 590px) 100vw, 590px" /></p>
<p style="text-align: center;">Data source: <a href="https://www.cbo.gov/publication/59710#data">https://www.cbo.gov/publication/59710#data</a></p>
<p>Deficit spending is a long-standing tradition in the US, with a budget surplus occurring in only four of the past 50 years. Debates about the size and importance of the federal debt raged for decades. With interest rates at historically low levels prior to the COVID-19 pandemic, debt financing came at a relatively small price soothing many concerns about deficit spending. Over the 2010s, net interest to finance the debt averaged only 6.8 percent of government spending and just 1.4 percent of GDP. Low interest rates led <a href="https://www.law.nyu.edu/sites/default/files/Furman%20Jason%20Summers%20and%20Lawrence_2019_whos%20afraid%20of%20budget%20deficits_foreign%20affairs.pdf">some to argue</a> that “[t]he economics of deficits have changed,” and that reducing the debt and deficit spending should be a low priority compared to continued government investments in security, infrastructure, and well-being.</p>
<p>Two fundamental factors emerged to accelerate debt accumulation during the COVID-19 pandemic and aftermath. First, federal deficit spending limited the negative economic consequences of federal, state, and local responses to COVID-19. Second, the Federal Reserve sought to control inflation, a result of the Federal Reserve’s practice of “quantitative easing,” by increasing interest rates following the end of the pandemic—increasing government borrowing costs. The overall result was that net interest on government debt more than doubled between 2019 and 2024 in actual dollars. More funds spent to finance the debt leaves a smaller fraction of outlays available for discretionary spending, including national defense.</p>
<p><img decoding="async" class=" wp-image-28080 aligncenter" src="http://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal2-300x167.png" alt="" width="580" height="323" srcset="https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal2-300x167.png 300w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal2-1024x571.png 1024w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal2-768x428.png 768w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal2.png 1213w" sizes="(max-width: 580px) 100vw, 580px" /></p>
<p style="text-align: center;">Data source: <a href="https://www.whitehouse.gov/omb/budget/historical-tables/">https://www.whitehouse.gov/omb/budget/historical-tables/</a><br />
<a href="https://www.cbo.gov/publication/59710#data">https://www.cbo.gov/publication/59710#data</a></p>
<p>As the above chart illustrates, the percentage of GDP allocated to debt repayment surpassed defense spending in 2024. Future CBO projections appear in dashed lines. Major wars in Korea, Vietnam, and the height of the Cold War increased defense spending in the short term, but the overall trend was downward. Future defense spending is increasingly constrained by spending growth in both debt and nondiscretionary programs. With debt repayment exceeding <a href="https://www.wsj.com/articles/biden-defense-budget-pentagon-u-s-military-china-russia-israel-ukraine-ba7fd46b">defense spending</a>, the American people should see this as a warning that must be redressed. Given great-power competition with China and several active hotspots around the world, decreasing American defense funding as a fraction of GDP is a significant concern. However, defense spending remains at a relative high point when examined in constant-year dollars.</p>
<p><img loading="lazy" decoding="async" class="alignnone wp-image-28081 aligncenter" src="http://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal3-300x166.png" alt="" width="528" height="292" srcset="https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal3-300x166.png 300w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal3-1024x566.png 1024w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal3-768x425.png 768w, https://globalsecurityreview.com/wp-content/uploads/2024/06/Fiscal3.png 1213w" sizes="(max-width: 528px) 100vw, 528px" /></p>
<p style="text-align: center;">Data source: <a href="https://www.whitehouse.gov/omb/budget/historical-tables/">https://www.whitehouse.gov/omb/budget/historical-tables/</a><br />
<a href="https://www.cbo.gov/publication/59710#data">https://www.cbo.gov/publication/59710#data</a>.</p>
<p>The size of defense budgets, accounting for inflation, provides a more optimistic view. The solid line presents historic defense spending in constant 2024 dollars and the dashed line, again, represents CBO projections. From 1950–2000, US defense spending increased significantly during major conflicts and at the height of the Cold War. Over those fifty years, peaks in defense spending remained below $750 billion in fiscal year 2024 dollars. Post–September 11, 2001, operations resulted in much higher levels of spending, approaching $940 billion at its peak. Even with reductions over the 2010s, spending over the next decade projects to be 15 percent higher annually than at the peak of the Cold War.</p>
<p>Even with high levels of spending, the current US force structure is in desperate need of modernization due to a laser-sharp focus on counterterrorism and counterinsurgency operations in prior decades. Since the year 2000, operations and maintenance (O&amp;M) spending has taken an increasing share of the national security budget. This means the United States is using its assets in combat and on deployment. Over the past 24 years, O&amp;M averaged 39 percent of the national security budget. In the 35 years prior to 2000, this number was only 30 percent.</p>
<p>The growing fraction of O&amp;M costs left a smaller fraction of the budget available for system acquisition. What funds remained were heavily focused on winning the Global War on Terrorism, meaning that investments in technologically advanced systems to counter threats posed by China and Russia often took a back seat. A second effect of the lack of procurement is that today’s military is simply smaller. For example, the US Air Force will soon have a <a href="https://www.airandspaceforces.com/air-force-divest-fleet-2025/">fleet of less than 5,000 aircraft</a> for the first time in its history and the US Navy will sail only <a href="https://www.aei.org/foreign-and-defense-policy/americas-incredible-shrinking-navy/">half the ships it did 40 years ago</a>. The outcome of these decisions, according to leading researchers, is that the “<a href="https://www.rand.org/pubs/research_reports/RRA2555-1.html">US defense strategy and posture have become insolvent</a>.”</p>
<p>What does this situation mean for the security of the US and its allies? While American involvement in a major conflict would certainly result in increased defense spending, there is precious little room for the peacetime defense budget to grow without large tax increases or significantly reduced spending on entitlement programs like Social Security and Medicare. The most likely outcome is that new investments will need to come at the expense of other platforms or spending inside the defense budget.</p>
<p>Closing the gap between strategic goals and the means needed to achieve those goals during this dangerous time of strategic competition requires a thorough examination of solutions beyond increasing defense spending. The defense strategy needs rightsizing and a focus on the most stressing threats to the nation’s security. New concepts for imposing costs on competitors need to be developed. Methods to deter conventional and nuclear conflict should also be prioritized with special attention paid toward developing methods to prevent a conventional conflict from escalating across the nuclear threshold.</p>
<p><em>Carl Rhodes, PhD, is a Senior Fellow with the </em><a href="https://thinkdeterrence.com/"><em>National Institute for Deterrence Studies</em></a><em> and the founder of Canberra-based </em><a href="https://www.robustpolicy.com/"><em>Robust Policy</em></a><em>.</em></p>
<p><a href="http://globalsecurityreview.com/wp-content/uploads/2024/06/The-US-Must-Handle-its-Fiscal-Challenges.pdf"><img loading="lazy" decoding="async" class="alignnone wp-image-27949 size-full" src="http://globalsecurityreview.com/wp-content/uploads/2024/05/Free-Download.png" alt="Download button" width="197" height="84" /></a></p>
<p><a href="https://globalsecurityreview.com/the-us-must-handle-its-fiscal-challenges/">The US Must Handle Its Fiscal Challenges</a> was originally published on <a href="https://globalsecurityreview.com">Global Security Review</a>.</p>
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