InfairnessitmustbestatedthatLairdhadachievedhisprincipalaim.He
hadsoscaredvariousconstituenciesthathisbudgetwascutbytheabsolute
minimum.InthelongrunthiswasofgreatbenefittoNATOandthedefense
postureoftheUnitedStates.Butin1969itcertainlycomplicatedtheprospects
foracoherentnewNATOstrategyandgaveusananxioustimewithourallies.
Basically,Lairdhadcalledattentiontoafundamentalissue.Therewaslittle
doubtthatthebudgetconstraintswerethreateningtoundermineourforeign
policy.Forthefollowingyearthesamedilemmassurfacedagain. ByJune1970,
budgetaryplanningforFiscalYear1972wasgettingintogear.TheBureauofthe
Budget(nowrenamedtheOfficeofManagementandBudget,orOMB)foresawa
defensebudgetof$76billion.MelLaird,withmysupport,begantowieldhis
formidablepowersofmaneuver.Heconsidered$79billionastheirreducible
minimum;ifhehadtocut$3billion,hewrotethePresident,theresultswouldbe
ominous.Laird’sgeniusforpaintingthemostdireconsequencesifhisbudget
requestswerenotmethadnotbeenimpaired;ifanythingithadbeensharpened
byhissuccessesduringthepastyear.Hesubmittedastaggeringinventoryof
reductions,whichincludedthelossoffouraircraftcarriers,deactivationoftwo
Armydivisions,retirementof130to140ofouroldestB ‐52S,andcancellationof
othermajorprocurementprograms.(Ifa$3billioncutwouldhave suchanimpact
itwasamazingthatthefullbudgetboughtsofewnewweapons.)
TobringthechoicesandtheirconsequencesintofocusIconveneda
meetingoftheDefenseProgramReviewCommittee.PaulMcCracken,Chairman
oftheCouncilofEconomicAdvisers,wasworriedthattheprojectedfederal
budgetof$237billionwould“scarehelloutofthefinancialcommunity”and
demoralizetheFederalReserveBoardtothepointwhereitmightputadamper
oneconomicrecovery.Wewouldthenwindupwiththeworstpossible
outcome—asluggisheconomyandrekindledfearsofinflation.McCracken
wanteda$6billioncut,twicethatrecommendedbyOMB.Ontheothersideof
theledger,DeputyDefenseSecretaryDavidPackardarguedthatanycutin
defensewouldbedisastrousforoursecurity.
Decisionswerecomplicatedbytheinabilityofthemilitaryservicesto
presentanagreedrationalefortheirrequests.Intheyearsofrelativelyample
defensebudgetseachservicehadsimplypusheditsownpetprojects,whichwere
usuallybasedonwhatwastechnicallyfeasible.The“agreed”JointChiefsofStaff