Research the U.S. Navy that addresses the impact the recent economic downturn had both on the agency and the community in which it serves. The paper should encompass numerous principles and financial theories. The paper should include potential solutions the agency could implement to reduce future economic downturns facing the organization. The paper should include potential solutions the agency could implement to reduce future economic downturns facing the organization.
Introduction
The ongoing global economic crisis has affected every sector of the economy. The participants and the beneficiaries of an economy all contribute to the condition of the economy and thus are also dependent on it. The effects of the economic crisis on the department of defense, the national defense strategy of the country and subsequently on the Navy are evidently substantial. For analyzing the crisis effects and its consequences on the Navy, this report will first analyze the need for the navies. The reason for getting the financial support from the governments and public has to be strong enough to persuade them.
Navies are expensive as are any of the other army services. It is the reason that they are required from time to time to construct a good argument of why a country must invest in it. The public resources which are invested in the Navy are doing to maintain it. There are many justifications which are given by navies and its supporters to justify their huge financial consumptions. It ranges from being guarded the coast of the nation against invaders or rudders to itself invading another land, to show the prestige of the country through its fleet simply.
Furthermore, Navy is used to guard the economic welfare of the country. It is done by protecting the commercial shipping of the country. This argument has been pushed forward by both US Navy and other navies of the world as well (Lillard, 2016). It is done to protect and empower their argument for more investment in their fleets. Quoting US Navy Chief of the Naval Operations;
“So how we protect the sea lanes, how confident we are that goods can move from one point to the other and not be interfered with is extremely important” (Heritage.Org, 2017).
This argument pushed by the Navies had some truth associated with it until the Cold War at least. Enemy countries attacked the commercial shipping, and the Navies were responsible for the safeguarding of their commercial shipping. However, this cannot be considered entirely as a fact in current times. The strategic environment of the world has evolved tremendously. Times have changed to the extent that the rug has been pulled out of this logical point.
However, navies are persistent in using this as their argument. They have not yet found any new argument which can convince the community in allowing them to invest more in their agency. The traditional utility argument is put forward by the admirals very often which does not convince the public very much. However, there is a relationship between the two, and if better articulated, it can emphasize and show the importance of Navy in the community. The public very much ignores the impact that it can have on the community.
By showing how the Navy is important for the community and how it protects its interests in trade and commerce other than in wars, it can make a good argument for convincing its community. They can then more confidently support investment in the US Navy. This report will first look at the role of the US, and what it does, then it will explore the current conditions of the US Navy after the economic downturn, and also show the impact that the agency has on the community that it serves.
The US Navy
The US Department of Defense provides an annual basis the military budget that is required for the protection of the United States; its community. The Department of Defense of the US has a multi-million supply chain which is spread globally around the world. It is one of the largest employers in the country and with over 1.1 million reserve and 1.4 million active duty employees. Other than this, it also employs civilians ranging to about 900,000 civilians. The employees of the Department of Defense are stationed on land, and on the seas. They are positioned in over 163 countries to safeguard the interests of the nation. The budget of the Department of the defense for the fiscal year 2018 is $574.5 Billion. It is more than Wal-Mart or Exxon Mobil. The US Navy gets about 30-35% of this budget, and the remainder goes to the army and Airforce.
There are some contractors who are associated with business terms with the Defense Department. The contractors earned about half of the Department’s budget. These costs only represent the costs of the day-to-day operations. The war costs are paid through the overseas contingency operations fund. These figures also do not take into account the financial support given by the other departments. After adding it all up, the total spending on America’s security gets up to about $800 billion. It is huge and greater than any other expense being incurred in the US (Amadeo, 2017).
Now if we imply the economic downturn, the impact of it on the Department of Defense and its operations can be considered. Funds are needed to secure the country. Fewer funds mean less security. Therefore, it can be said that The US Navy has been affected by the economic downturn as much as any other business or department. This impact does not remain constrained to the US Navy agency. Its effect trickles down to the community as well. The impact of the US Navy is more of implied in nature. It protects the community from something which has not happened and has the possibility of happening.
The potential future attacks on the USA are considered here. The economy is dependent on the US Department of Defense as well as it stimulates it in the short run. It employs about millions of employees, gives business to thousands of contractors supporting their employees as well. However, the spending on the defense threatens the economy as well in the long run by the constant increment in the budget deficit and consequently in the US Debt.
Economic Downturn Impact on US Navy
Before the starting term of Barrack Obama, the analysts believed that the then-president is going to inherit a hobbled US military affected by aging weapons, stretched to the breaking point for over seven years of conflict and funded by the operational and procurement budgets which even exceeds the most optimistic analysis of the future spending. All this has been true until the economic crisis of the year 2008 hit the country (Taylor, 2009).
The experts suggest that now something has to give in. The war in Iraq has to end for getting the economy out of its crisis. Barrack had this on its priority list. The impact of the economic crisis of the US defense has been far from threatening. Before becoming the president, Obama had campaigned by pushing forward the strategy of streamlining the Pentagon’s budget and acquiring of the threat-specific weapons, and also cutting budgets for some of the programs. Other than this, the American troops from Iraq and Afghanistan had to get out of there shortly. It will aid in freeing up of the discretionary spending for any other priority policies (Council of Foreign Relations, 2008).
The impact of the economic downturn on the US Navy has been devastating. The news reports have shown that Navy sailors have started to give warnings of the condition of the sea troops. They think that it is a matter of time that something horrible will happen. The troops stationed in North Korea showed their concerns by saying that they often prayed that they don’t have to shoot down a missile in North Korea because then their ineffectiveness will come opened (Rose & Spiegel, 2012).
The crash of the Navy aircraft near Japan was the fifth accident reported in the year of 2017. Its fleet is responsible for working with South Korea to safeguard against the North Korean strikes. Furthermore, it is also responsible for circling the South China Seas where China is building human-made islands, planes, and ships. Then there is Russia, Australia, and India in this region as well. The risks associated with the fleet are now new. They have accumulated over time.
The accidents that happened in the year 2017 point out towards the ineffectiveness of the US Navy fleets. Seven sailors died, and several got injured in June when one of the Destroyer USS Fitzgerald collided with the container ship of Tokyo. The sight of the damaged ships raises questions about the supposed strength of the US Navy in the oceans. Another accident was reported in August when an oil tanker hit the USS John McCain, causing five injured sailors and ten fatalities. The investigations led to reveal that the accidents were avoidable.
The fleet of Navy over the past decade specifically after the economic crisis has shrunk. The 600 ships have shrunk to 380 today. The new President Donald Trump has promised to expand the fleet to add 300 more ships for increasing the aircraft carriers and ships (O’Brien & Hendrix, 2017). However, the budget imposed by the Trump government has in actual imposed cuts to the shipbuilding funding. It raises questions about the operational ability of the US Navy that whether they are up to the challenges faced in the Pacific region. A time when the top leadership is acknowledging the lack of funds, workforce, and the weapons, the challenges seem far from equal.
After being asked by the House Armed Service Committee of the crisis in the US Navy, it was said that the US Navy is being pushed to its limits. The problem in the supply-and-demand has caused the agency to feel strained on the force. They mentioned that they are not big enough to cater to the challenges given to them. However, the culture of the agency is to get it done at all costs. The US Navy thus thinks that the culture of the Navy sometimes works against it. Even the Senator John McCain has also established the concerns by saying that; “The reality remains that our Navy is underfunded, over-tasked, and too small.”
Impact of US Navy on Community
America’s navy is the front line of the nation in the war as well as in peace. They protect and guard its community and country on above and below the sea. One can think of the US Navy as the “away team’ which is deployed all over the world and is defending and guarding the interests of the community that it serves all over the world.
Many of the qualities that were shaped and that made Navy win 200 years ago during the War of 1812 are still true. The fighting spirit, culture and the bold nature of the sailors of the US Navy is still the key characteristic. The direct link between the prosperous economy of America and a strong Navy is still considered true. The technological supremacy, making the US Navy the strongest of all nations still holds an important aspect. The role that it plays in guarding the sovereignty of the community that it serves is still the same.
The United States is a maritime state which has seas on both sides of its country. Considering some key facts will enable to understand the role a Navy can play to impact its community. Like considering that Water covers 70% of the earth, and that about 80% of the population of the world lives near the oceans and that the 90% of the world trade by volume is done through the sea. Therefore, it can be deduced that what happens on the sea, matters. It matters to the defense of the nation. And it matters to the peace of the world. And it matters to the economy of the US and the world. Therefore, a strong Navy is needed to maintain the American way of life.
The need of a strong US Navy has never been more. The country has a commitment in regions like the Asia Pacific and Middle East in which the presence of the US Navy is very crucial for the interests of the community of US. The US is at war at this time. It is at war with the terrorist group who has a network spread all over the world. They have attacked the prosperity of the US in the past, and they have intentions to do so in the future as well. Furthermore, the potential for the spread of nuclear weapons in the unstable regimes also holds dangers for the US community.
The rising powers of the world have started to develop their navies to match their economic growth. The weak states around the world act as a haven for the terrorist groups and these groups like Al Qaeda attack US community and its freedom from these havens. Furthermore, the rising climate change is also building problems for the navy by disrupting the shipping lanes and the various oil supply lines which were locked in the ice that has now melted due to global warming.
Solution- Navies & Economic Prosperity
The task heading the US Navy is how it can expand its fleet and also maintains the current felt as well. The reports show that the delays in maintenance have led to the sidelining of the 11 Navy ships. The inadequate facilities and the ineffective equipment have led to the delay in the maintenance of the ships losing about 1300 of operational working days. These are the days when the ships were unavailable for operation as aircraft carriers and submarines.
The report estimates that the US Navy would be unable to carry out 73 out of the 218 maintenance periods for around 23 next fiscal years because of the lack of capacity and various other deficiencies. It shows that the US Navy would need about 19 years to erase its $4.68 billions of backlog in maintenance and restoration of the projects. It is astonishingly surprising that how this agency can resolve its problems (News.com.au, 2017).
The fleet requirement of the Navy is listed here showing its needed inventory:
Heritage.Org. (2017). Navy Requirements and Current Inventory (Table). Index of U.S. Military Strength. Heritage.Org: http://index.heritage.org/military/2017/assessments/us-military-power/u-s-navy/
For solving this problem, the agency would need to rebuild itself completely. For this purpose, it is needed that the agency builds confidence in itself so that the community is confident in spending on its Navy. For this aim, the community should be seeing the benefits that it will have after investing such huge funds. Thus, for this reason, it is needed that the agency should work on articulating the relationship between economic prospects of the parent nations and the navies (Heritage.Org, 2017).
Theorists Viewpoint
In the nineteenth century, the American Theorist Alfred Thayer introducing his book established the relationship between the war, the economic prospects of the nation and sea power. He argued that wars cannot be conceived as merely the clash of the enemies. The armies are backed by the wealth of the nations which is consequently backed by the trade of the nations. He tried to establish the relationship between the Navy of a nation, its commerce, and its economic prospects. A nation which is conducting trade in the seas naturally needs an army, i.e., Navy to protect it as well. The Navy by protecting its trade not only guards it, but also increases it, and thus the wealth of the nation rises as well. The command of the seas of the American Navy allowed it to enjoy the international power and to set the rules for the international order (Dutton, Ross, & Tunsj, 2013).
Gaining from this privilege, the US was permitted to establish the liberal capitalist trading order. The global trade has now become a stake for all the nations, and thus the commercial ship moves unmolested and thus the relationship of the navies, and trade fails here. However, there is one relationship for the navies which can replace this one and can offer the Navy to bring it as an argument to invest in it. For understanding and articulating the relationship of the global economic system and the Navy, one needs to develop a truly global perspective. It enables us to recognize that all the trade of the nations is interdependent.
It allows us to see that the world system of commerce is all knitted together. It shows that the protection of one nations’ trade and not the other will only threaten all the nations’ commerce. The system, on the whole, has to be protected. Thus, the Navies should recognize that the Navies aim is not only to guard the ships if there is nothing present in these ships. The flow of finance and information across the globe has to be protected.
If someone understands and shows the world that navy can support the economic prosperity, the reason for the optimism can turn into vivid that the naval building programs conducted in China and India do not need to direct to war. The oceans may be denied to the terrorists, and the oceans may be only used not to take the interacting breach into the system. The naval cooperation can protect the seas and the nations, thus reducing the likelihood of war, conflict and economic downturn (Rubel, 2012).
Conclusion
In the end, it is concluded that the US Navy is one of the important and ignored parts of the defense. The economic downturn of 2008 has led the US Navy to the edge of economic inadequacy and ineffectiveness. There are some accidents which have been reported which leads to the ineffectiveness of the US Navy. The role that Navy plays is far greater than safeguarding the seas. It also aids in the protection of the trade and commercial shipping. The US Navy agency can consider articulating o of a strong argument showing the relationship between the economic prosperity and US Navy and trade. It can lead the community to invest in the US Navy confidently. The navies have their maximum utility in the times of peace. An investment in the sea power, therefore, is more suitable and suitable at a point when the threats are in vague. By seeing the world as a system, the sea power can be used to unite the nations and to guard the interests of the communities all over the world. This investment can lead to improved peace and even in the recent global economic crisis to prosperity as returns.
References
Amadeo, K. (2017, May 25). Department of Defense: What It Does and Its Impact. Retrieved from The Balance: https://www.thebalance.com/department-of-defense-what-it-does-and-its-impact-3305982
Council of Foreign Relations. (2008, December 4). Defense Spending During Eocncomic Crisis. Retrieved from Council of Foreign Relations: https://www.cfr.org/backgrounder/defense-spending-during-economic-crisis
Dutton, P., Ross, R., & Tunsj, y. (2013). Twenty-First Century Seapower: Cooperation and Conflict at Sea. Routledge.
Heritage.Org. (2017). Index of U.S. Military Strength. Retrieved from Heritage.Org: http://index.heritage.org/military/2017/assessments/us-military-power/u-s-navy/
Lillard, J. M. (2016). Playing War: Wargaming and U.S. Navy Preparations for World War II. U of Nebraska Press.
News.com.au. (2017, November 25). US Navy floundering under sea of crises, according to jaw-dropping reports. Retrieved from news.com.au: http://www.news.com.au/world/north-america/us-navy-floundering-under-sea-of-crises-according-to-jawdropping-reports/news-story/8fda86f46683247bc1586dfd34ec056b
O’Brien, R. C., & Hendrix, J. (2017, October 18). Why the United States Needs a 355-Ship Navy Now. Retrieved from National Review: http://www.nationalreview.com/article/452768/us-navy-355-ships-needed
Rose, A. K., & Spiegel, M. M. (2012). Cross-Country Causes and Consequences of the 2008 crisis: early warning. Japan and thw World Economy, 24(1), 1-16.
Rubel, R. C. (2012). Navies and economic prosperity–The new logic of sea power. Retrieved from https://www.kcl.ac.uk/sspp/departments/dsd/research/researchcentres/strategyandpolicy/corbett/corbettpaper11.pdf
Taylor, J. (2009). Taylor, John B. The financial crisis and the policy responses: An empirical analysis of what went wrong. National Bureau of Economic Research.
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