Shifting from guns to roads

Feb 26, 2014, 06:23 PM

Episode image

Pressure on the US government budget has been forcing the authorities to take a tougher line with tax avoiders. That pressure is also forcing the White House into a major rethink on military spending. Defence secretary Chuck Hagel is proposing cuts which would shrink the US army to its smallest size since the Second World War. But the White House has big ideas on spending too. Within the next few hours, President Obama will reveal plans to spend hundreds of billions of dollars updating the nation's roads and railways. I discussed that with the American economist Irwin Stelzer at the Hudson Institute in Washington. First, why did he think the White House was proposing these cuts to the military?