The Economic Effects of Reduced Defense Spending
Abstract
The past three years have seen, in both Europe and Asia, dramatic changes with profound implications for the United States and the world. As a result of the collapse of communism and the political and economic disintegration of the Soviet Union, the composition and size of U.S. military forces will undergo great changes. Initial reductions are already under way, and major cuts are being planned. By 1997, under the Administration's plan presented in February 1991, national defense outlays would be 28 percent below their peak level in the 1980s. Changes of these magnitudes naturally raise concerns about economic effects. This congressional Budget Office (CBO) study, prepared at the request of the Minority Leader of the United States Senate, examines the effects of cuts in defense spending not only on the national economy but also on states, industries, and selected local areas
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1992
- Accession Number
- ADA274932
Entities
Organizations
- Congressional Budget Office