Defense Spending Is on the Decline Despite the War on Terrorism
Although the United States is currently spending a significant portion of GDP on the military, defense spending has actually declined significantly since the early 1960s.
Discretionary Spending as a Percentage of GDP
Source: Outlays from the the FY 2009 Historical Tables, Budget of the United States Government, Table 8.1, and Congressional Budget Office, Long-Term Budget Outlook, December 2007.