washingtonscene
Quote of the Month “It’s wrong to ask [mili- tary retirees] to sacrifice more when Washington has not had the political courage to look at the big picture on the bud- get or the courage to address the big drivers of our debt. … Our mili- tary has … sacrificed, and for us to target them first, I think, is the wrong thing to do.” — Sen. Kelly Ayotte (R-N.H.)
One source cited in the article asserted, “This is another entitlement program that could break the bank ...” Think about that for a minute. On one hand, this is what economists
do — project long-term costs of current is- sues. On the other, it’s a perfect illustration of how distorted the world can look when viewed through an economist’s prism. Let’s start with the fact these unfunded liabilities are people, not widgets. Second, let’s recall these unfunded li- abilities acquired this distinction solely because of government orders. Finally, assigning them to the unfund- ed-liability bin utterly ignores the flip side of the coin: the often terrible and perma- nent physical, psychological, and financial liabilities incurred by the people who fol- lowed those orders — up to and including the deaths that inflict those costly burial benefits on the taxpayers. Unfortunately, the unfunded-liability perspective almost certainly will grow more prevalent as the nation’s budget problems worsen in coming years. Today’s amputees receive wonderfully
crafted (and expensive) prostheses. When they need to be replaced, will the country still be willing to cover the cost? Some have proposed addressing the fu-
ture funding need by creating a trust fund. But a trust fund is only a tool, not a cure. Most existing trust funds (e.g., Social
Security, Medicare, TRICARE For Life) already are under attack for being un- sustainable or costing too much. Further, trust funds carry with them special con- gressional rules that make solving any funding problems even harder. It’s a hurtful truth that budget problems all too often cause government leaders to do callous things to serve short-term needs. As stewards of those who served with
us, before us, and after us, we’re obligated to call a foul on those who would reduce
30 MILITARY OFFICER JUNE 2012
wounded, ill, and injured protectors of the nation to mere unfunded liabilities.
Keeping Faith? MOAA contests CSIS report.
I
n late March, the Center for Strategic and International Studies (CSIS) hosted a “public release” of its report Keeping
Faith: Charting a Sustainable Path for Mili- tary Compensation, which originally was published in October 2011. The rerelease followed a recent dialogue
between CSIS and the Pentagon and coin- cided with a Senate Armed Services person- nel subcommittee hearing on the Pentagon’s proposed health care fee increases. The CSIS event included a discussion panel comprising former Deputy Sec- retary of Defense Rudy deLeon, former Assistant Secretary of Defense for Force Management and Personnel Christopher Jehn, and former Senate Armed Services Committee professional staff members Charles Abell and Patricia Lewis. The report contrasted military person-
nel cost growth of nearly 50 percent be- tween 2000 and 2012 with the 1-percent force growth over the same period. CSIS officials say the report doesn’t ad-
vocate for any specific outcome but rather is meant to inform the “ongoing national debate by describing how and why military compensation costs have expanded and what this means for future expenses.” Overall, the report provides three major
recommendations: • Policy makers should approach changes to military compensation comprehensively. • The impact of and effects on military culture need to be accounted for in any reform initiative. • DoD should use available tools to gain a better understanding of current and potential members.
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