Monday, July 10, 2006

Canada needs to limit the welfare state and increase defense spending

Even with an increase in military spend Canada is not doing nearly enough

by StFerdIII

The US press announced with glee Canada’s $15 billion military spend over 5 years to take the annual military budget from C$11 billion to $14 billion. While one can understand American happiness at having a friendly and pro-military government to their north one has to wonder what all the fuss is about. Even with the increase the Canadian military is under funded. Simply put without a doubling or tripling of its military spend Canada’s armed forces will cease to exist in 10 years. Though a good start the extra $3 billion in yearly spend is not nearly enough and needs serious augmentation going forward if Canada is to reform its international power position and begin to cast off the shackles of depressing socialist cant and statism.

Though Prime Minister Harper’s announcement of greater military spend is bigger than what the Liberal party had promised [about $12 billion over 5 years] it is hopefully only the first stage of a multi-budget process to resurrect the abused and neglected Canadian forces. Once the pride of the country, the armed forces lack transport; clothes; weapons; and training facilities, not to mention men, with only 60,000 in uniform with an effective fighting force of 18,000. This is not acceptable for a nation state with global interests. Of the total C$205 billion federal budget, the military will receive $14 billion or only 7 % of the total. This means that 90% of Federal budget spend goes to welfare, redistribution and mommy-state programs of vote buying convenience. Again this is not how an adult nation state should act.

To put the military spend in comparison with other departments consider this: of the 11 major spending areas the military is far down the list in total allocated funds [7th]; and aggregate increase in the past decade [10th]. Contrary to party and media information the military has never been a spending priority and is still below necessary levels of sustainability.

Federal 2006 Budget:
-Military: $15 billion or a 33 % increase yr over yr

Versus:
-Debt charges: $34.4 billion a decrease of 4 %
-Old Age payments: $30.6 billion, an increase of 6 % yr over yr
-‘Other Subsidies’: $26 billion an increases of 13 % yr over yr
-Operations: $23.5 billion an increase of 10 % yr over yr
-Health Care: $20.1 billion an increase of 55 % yr over yr
-Employment Insurance: $15 billion, no change
-Fiscal transfers to provinces: $11.2 billion an increase of 19 % yr over yr
-Social Transfers: $8.5 billion an increase of 3 % yr over yr
-Native Indians: $6 billion an increase of 12 % yr over yr
-Government owned monopolies: $5.2 billion an increase of 4 %

Debt and welfare programs take precedence over a strong military. As a percentage of GDP Canada’s $15 billion military spend is 1.3 % of GDP or about 50 % of UK and French levels and 30% of US levels. Just to normalize the military spend to UK levels of 2.5 % of GDP would mandate an immediate doubling in Canadian military spend to $30 billion. At that level military disbursements would move into 3rd place on the budgeting priority list behind Debt Reduction and Old Age vote buying transfers and pensions.

But this will never happen.

Canada will continue to free ride off the US military and oppose the US’s right and necessary war of exterminating Islamic fascism in Iraq and beyond. Though providing a useful fighting element in Afghanistan, it is clear by policy statements from Canadian defense staff that this mission has stretched Canadian military power to the limits even though only 2800 men are involved. This is simply unacceptable for a nation state that must aid in fighting terror and counter the threat posed by fascist Islamic elements across the globe. By not investing in its military Canadian politicians have circumscribed Canadian political power and influence with the Americans which comes back to haunt trade, security and border discussions. Though Harper’s additional $3 billion must seem like manna from heaven for the starving military it is not nearly enough. Canada and its politicians need to do some serious thinking and rework to limit the mommy-welfare state and enable military force and power projection.

That is all after the first and primary occupation of a Federal government.