Defense Spending and the Federal Deficit

A familiar scenario is developing this year on Capitol Hill. Defense Secretary Robert Gates has advised President Obama to veto a spending bill that includes the C-17 Cargo plane and an alternative engine for the F-35 Joint Strike Fighter. Those are two projects the Pentagon says it doesn't need, and Gates has warned that the soaring deficit is about to shrink the "gusher" of money that has poured forth since September 11, 2001.