Leading Indicator of Decline

The $489 billion cut to defense budgets engineered by Barack Obama — as well as the played-for-fool Republican accomplices on Capitol Hill — won't just mean less American military power. These cuts have significant consequences for America's allies, as well.

Consider the case of the F-35 Joint Strike fighter program. The Obama Pentagon has reduced the 2013 purchase of Lightnings from 42 to 29 and reduced the planned five-year buy by more than 100 aircraft. This will drive the cost of each F-35 up, yet again; the development costs of the plane remain the same regardless. And because the JSF program has been an international effort since its conception, Obama’s decision increases the cost for everyone.

Thus it comes as little surprise that yesterday Italy announced a significant reduction, from 131 to 91, in its planned F-35 purchases. Rome’s decision threatens to sow doubt among other international partners. The timing of the announcement, only days after the U.S. fiscal year 2013 budget was released, shows that the Italians are following Obama's lead — the White House has given them cover in using defense reductions as the principle ingredient in accepting government "fiscal discipline." In “extending” the U.S. buy of F-35s—in practice, the purchase of 179 fewer Joint Strike Fighters through fiscal year 2017—the United States has thrown into question the economics of the program and opened the door for partner-nations to back out of commitments.

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