Evening star., 1949-01-11
A Budget for the Cold War

A Budget for the Cold War
Congress can be counted upon to make
number of changes in President Truman's
budget recommendations for fiscal 1850,
but his projected overall expenditures
the highest in our peacetime history
are not likely to be reduced in any marked
degree. Indeed, depending largely on
future events, they may even run higher
than the Sal 900 100000 he proposes to
spend.
The primary reason for this is the
dangerously unsettled state of the world
More than three years after the total
defeat of the Rome-Berlin- Tokyo Axis,
there is still no real peace among nations
Instead, with the Soviet Union pursuing
an obstructionist and aggressive policy
everywhere, there is potentially explosive
cold war between East and West, and
Mr.. Truman has tailored his major budg-
etary figures accordingly.
Thus, he has set aside an estimated
$21 900, 900, ,000-or half the proposed total
outlay for fiscal 1950-to cover our inter-
national and national defense programs
About $6,700, 100000 of this sum has been
earmarked for such continuing overseas
projects as Greek aid and the European
recovery plan. The remainder-$14,3 ,30O,-
00,000-has been recommended as the
minimum needed to keep our military
establishment In the kind of readiness
the present world situation demands.
Actually, as the President has pointed
out in his budget message these estimated
cold-war expenditures may have to be
revised upward later in the year. This is
so because he has made no provision for
the likely prospect that the United States
will participate in the projected North
Atlantic mutual-assistance pact under
which 1t would furnish military supplies
to the other signatories In any case,
wholly apart from the costs implicit in
that pact, 1t seems doubtful in the extreme
that Congress-keeping in mind our vital
security interests-will be able to make
an appreciable cut in the $21 900 900 900
Mr.. Truman deems essential for our
national and international defense.
Two other of the Presidents major
estimates appear even more imperNous
to reduction. Resulting largely from the
last war, they are S. 500, 900, 900 for vet
erans' benefits and $5,4O0, 900 900 for inter-
est on our huge public debt-a total of
almost $11 900, 100000, or 2e per cent of all
the expenditures projected by Mr.. Truman
for fiscal 1850. Since neither of these
costs can be slashed, and since our
national and international defense out
lays seem almost as difficult to cut the
only items remaining for possible econo-
mics by Congress make up the fnal "a
per cent of the proposed budgets, ,s00,-
100000 for such projects as expanded social
security, health insurance, housing, educa-
ton, farm support programs development
OF natural resources and the expenses of
general Government.
Taken singly, however, none Of these
latter items seems to lend itself to large
scale economies, although Senator Byrd
Is certainly on common sense ground in
suggesting that Congress should be able to
ef1ect at least respectable savings by
cracking down, wherever 1t can, on non
essentials, inef1iciency, waste, extravaganza
and deadwood on the Federal pay roll.
But though 1t Is possible, as Senator Byrd
says, that such course might wipe out
the $873,000,000 deficit predicted by the
President, it would still leave the overall
budget fundamentally unaffected.
At any rate, given the extraordinary
demands of the cold war, and assuming
that the American people really want to
expand social welfare Financing it by
higher payroll taxes on employer and
employee, it is difficult to see just where
the Presidents estimates can be drastically
slashed. And If they cannot be slashed,
If they must stand substantially as he has
presented them, then there Is every reason
why Congress should pay sympathetic
attention to his appeal for $4,000, 900 900
in new taxes to help pay off the national
debt
When we recall that as recently as 1910
our total Federal expenditures were only
about $4,000, 100000, all this may seem
rather dismal. But the fact we have to
face is that until we have genuine peace
in the world, our security is going to keep
on demanding budgets like this latest one
Beyond that-again assuming that the
American people want to move toward a
social-welfare state-we are not likely ever
to drop back to our prewar spending level,
even should Russia become lamb-like
Whether for good or i'll, that is the long
term fiscal outlook before us.
Choosinn Orr Wennons