Suppose there was a debate regarding military budgets and the Democrat was arguing for a budget increase from $400 billion to $405 billion and the Republican was arguing for the budget to increase to $425 billion. Further suppose military salaries and procurement of the same weapons systems are project to rise 2%. The Republican accuses the Democrat of proposing a cut to the military, the Democrat insists his plan increases military spending. What is going on here?

Question

Quizplus · Accepted Answer

The Republican is using baseline budgeting, which assumes that the budget will increase by a certain amount every year. The Democrat's proposal would increase the budget by $5 billion, but the Republican is comparing it to the baseline budget of $425 billion, making it seem like a cut. However, if you use current services budgeting, which takes into account actual costs and inflation, the Democrat's proposal would still result in an increase in military spending.

Suppose There Was a Debate Regarding Military Budgets and the Democrat