The White House made clear last week that it had no interest in Social Security reform, citing budget projections showing a shrinking deficit and debt-to-GDP ratio. This week Defense Secretary Chuck Hagel rolled out a budget that would shrink the Army to pre-World War II levels, on the excuse that the Pentagon needs to recognize “the reality of the magnitude of our fiscal challenges.”
So we’re rolling in dough when it comes to entitlements, and on Wednesday the President also proposed to spend $302 billion on roads. Yet we’re out of cash for defense. This is the policy combination that has made much of Europe bankrupt and defenseless at the same time.