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The chasm between Republicans, Democrats, and the military over defense-spending cuts was on full display on Thursday as key lawmakers in separate events accused each other and senior U.S. military leaders of deceit and dishonesty over deficit-reduction posturing and what is required for national security.

House Budget Committee Chairman Paul Ryan, R-Wis., claimed senior U.S. military commanders were dishonest in presenting Congress a budget request he thinks they don’t really want.

“We don’t think the generals are giving us their true advice,” Ryan said at the National Journal Live Budget Policy summit at the Newseum, adding, “I think there’s a lot of budget smoke and mirrors in the Pentagon’s budget.”

At the same time, House Armed Services Committee ranking Democrat Adam Smith of Washington blasted Republicans for deploying a “divide and conquer” strategy to protect defense budget interests.

Smith also accused his committee and Congress writ large of endangering national security with a “head in the sand” strategy to delay making tough decisions on deficit spending before the November elections and before sequester kick-starts $600 billion in defense cuts at the end of the year.

“If we don’t confront mandatory spending and revenue, then the discretionary portion of the budget is going to get hammered. And defense is over half of the discretionary budget, which again means if you care about defense spending and national security, you have to care about fixing the larger debt and deficit problem,” Smith argued, in a blistering keynote address at the RAND Corporation, a government-funded national-security think tank, in Pentagon City, Va.

Ryan’s frank criticism of the generals came as he repeated an oft-heard Republican complaint: that the fiscal 2013 defense request — which is strongly endorsed by the Joint Chiefs of Staff — was not “strategy-driven,” but rather was based on an artificial spending cap imposed by the White House.

Pentagon press secretary George Little bristled at Ryan’s remark, saying, “The secretary of Defense has been very clear with the military leadership in this department that they should provide independent military advice and be as straightforward as possible with members of Congress.”

Secretary Panetta “expects honest, straightforward input from our military leadership,” Little said, “and he (Panetta) believes that is precisely what they do on a regular basis, time and time again.”

Smith, following his speech, told National Journal, “Calling our senior generals and admirals, like (Chairman of the Joint Chiefs) General (Martin) Dempsey, ‘liars’ is totally out of bounds. You may not agree with everything they say, but accusing them of bowing to political pressure and lying to Congress about national security is an insult to them and the brave men and women they command on behalf of our grateful nation.”

“Paul Ryan should apologize,” Smith continued. “And if he won’t, Speaker [John] Boehner and Republican leadership should condemn Ryan’s remarks.”

During his speech, Smith countered the strategy-first complaint, saying, “That strikes me as insane, because every single decision we all make is driven by the budget … we don’t have an infinite amount of money, you have to consider the budget when you’re putting together a strategy.”

The chiefs, in testimony and public remarks since early February, have already deflected the complaint. Privately, senior military officials in the Pentagon say spending cuts have been expected for years and there is no sense the budget was imposed on the military by Democrats in the White House.

As members head into recess, few prognosticators venture to guess how the U.S. will avoid the year-end automatic sequestration cuts to defense spending that nearly all parties fear, but most do not expect an easy resolution until the short window between the election and the new year.

If a budget is a political document, then House Budget Chairman Paul Ryan, R-Wis., laid down his marker Tuesday to show how little he likes the size and scope of federal government: a dramatic and perhaps unwise stance in a close election year.

Ryan’s budget proposal, released Tuesday morning, would hand more control of Medicaid and food stamps to the states by block granting the programs.  He would repeal healthcare reform, which he calls in his budget part of a “growing and pernicious trend of government outreach into the economy,” and he would get rid of yet-to-be-determined government programs and agencies that he views as wasteful. In his budget last year, he offered more specifics about government programs he dislikes: everything from environmental protection to financial regulation.

You can practically see the Democratic opposition ads unfolding now, showcasing the way Ryan’s plan would drastically cut government spending while keeping the Defense Department’s budget in tact.

Most importantly, this budget tests Ryan’s reputation as a fiscal hawk, especially his tax plan. The latter would reduce the individual tax rates (which make up the majority of government revenue) to two brackets of 10 percent and 25 percent, while lowering the corporate tax rate to 25 percent. The Joint Committee on Taxation released a report last October saying it would hard to reduce the corporate tax rate to anything lower than 28 percent without losing money.

To pay for these tax cuts, Ryan’s budget says it would close tax loopholes: a political dodge both parties lean on heavily when talking taxes. But, for an economic nerd like Ryan, the dodge does not come across well. Which loopholes? Would it be the wildly popular mortgage interest deduction that encourages millions of Americans to buy homes, or the tax break that goes to employers that offer healthcare? And, which segment of the population would bear the brunt of the elimination of certain tax breaks: the middle class, the poor, or the wealthy?

Those answers may become clearer as Ryan makes the sales pitch for his budget throughout the week, appearing on various television programs and at two conservative think tanks.

Still, other questions remain, like the way Ryan assumes he can reduce the deficit so quickly as well as his assumptions for economic growth. According to his plan, Ryan will reduce the federal deficit to $800 billion in fiscal year 2013, a huge drop from the CBO’s latest projection that puts the deficit at $1.2 trillion. How can Ryan cut the deficit in one year by $400 billion if he plans to keep defense spending as is and propose huge tax cuts?

Secondly, his plan relies heavily on the idea that lower tax rates, little regulation, and smaller entitlement programs will jolt the economy alive again, shocking it into action. The tables at the end of his budget illustrate this best when they show revenue rising by billions of dollars throughout 2022.

“We reject calls to raise taxes, but revenue nevertheless remains steady under our budget because we close special-interest loopholes,” he writes in a Wall Street Journal op-ed. “More important, our reforms will grow the economy—and the faster the economy grows, the more revenue the government will have to meet its priorities and start paying down the debt.”

Yet, Ryan is also clear in his budget that he wants the CBO to change to way it measures government policy and that stinks of budget gimmickry, a charge he often levels at Democrats. It would be incredibly difficult to increase revenue and reduce the deficit in such a short period of time, alongside Ryan’s other plans—even with huge cuts to government spending.

Ryan opens his budget with a narrative and chart that maps out what he calls the contrasting vision between his agenda and President Obama’s. Ryan certainly has laid out an ideal for the Republicans, even if it contains gaps.

The question now is: Will the Republicans follow him as the party seeks to take over the White House and Congress, or will his budget proposal and its ideas expose fissures within the GOP?

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Don’t forget to read the first four posts in this series, which originally ran in SmartBlog on Leadership. (For more business leadership news from SmartBrief, sign up for SmartBrief on Leadership.)

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Executive coach Scott Eblin’s goal is to help you succeed at the next level of leadership. Throughout the week, he’ll offer his take on the leadership lessons in the news and his advice on your most pressing leadership questions. A former government executive, Scott is a graduate of Harvard’s Kennedy School of Government and is the author of The Next Level: What Insiders Know About Executive Success.

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The Defense Department is under fire this week, with several sources alleging its failure to address sexual assault, hazing and its lack of diversity.

Eight women — seven veterans and one current service member — filed a lawsuit Tuesday against current and former military leaders, the Associated Press reported.

Seven of the women said a comrade raped or attempted to sexually assault them during their service in the Navy or Marine Corps, while one woman said during her deployment to Iraq she suffered harassment and threats. Several said they had a superior dismiss their complaints, or they suffered retaliation after coming forward.

The suit, filed with the U.S. District Court for the District of Columbia, says the Defense Department has not done enough to tackle the problem of sexual assault and has created a hostile environment that discourages sexual assault victims from reporting incidents and punishes those who do.

“This is the year 2012. This kind of conduct is not acceptable,” said Susan Burke, a lawyer representing the eight women.

In an attempt to address such problems, Defense earlier this year introduced several initiatives, including one for implementing a sexual assault advocate certification program and another requiring victim advocates and response coordinators at the department to obtain credentials that meet national standards.

After a December 2011 report found a sharply higher number of sexual assaults at military academies, Defense announced two policy changes to allow victims of sexual assault to request an expedited transfer from their unit or installation, and to standardize the retention period for sexual assault records and make them available to victims.

Cynthia Smith, a Defense spokeswoman, reiterated these recent measures and said that the department has a zero-tolerance policy, but she could not comment on the suit.

“It is important that everyone in uniform be alert to the problem and have the leadership training to help prevent these crimes,” she said in a statement.

Congress, meanwhile, is calling into question Defense’s efforts to prevent harassment and increase diversity, The Washington Post reported.

At a joint-congressional forum on Tuesday, lawmakers questioned Defense leaders on their lack of progress in implementing the recommendations of the Military Leadership Diversity Commission, which found that minorities are underrepresented in armed forces leadership. Rep. Elijah Cummings, D-Md., noted the services have more than half the recommendations still under review. “It sounds like there’s been a lot of talk, but not enough action,” he said.

Rep. Judy Chu, D-Calif., angrily confronted Defense leaders for failing to take harassment and hazing seriously and stated the services do not punish violators adequately.

Chu’s nephew, Marine Lance Cpl. Harry Lew, committed suicide in Afghanistan in April after alleged physical harassment from his fellow Marines.

“Any claims that hazing incidents are isolated are unfounded,” Chu said.

Clarence Johnson, director of the Defense Department’s Office of Diversity Management and Equal Opportunity, told lawmakers the Pentagon is doing its best to combat hazing.

“The department’s policy prohibiting hazing is unambiguous,” Johnson said. “It is contrary to good order and discipline and is unacceptable behavior.”

unable to retrieve full-text contentAP – Authorities say a convicted killer who gained notoriety for having a murder scene tattooed on his chest received unemployment benefits while he was in jail.

unable to retrieve full-text contentAP – A former governor of Nigeria’s oil-rich Delta state pleaded guilty in a British court Monday to charges of money-laundering, conspiring to defraud and obtaining a money transfer by fraud, officials said.

President Obama’s fiscal 2013 budget proposal asks Congress to increase spending on renewable-energy projects by about $500 million – almost the same amount the Energy Department lost on its loan guarantee for the bankrupt solar-panel manufacturer Solyndra.

The proposed spending increase, which would take the Energy Department’s renewables spending up to $2.3 billion, compared to $1.8 billion in fiscal 2012, is a clear signal that Obama plans to push ahead with full-throated support of clean energy on the campaign trail, despite the Solyndra controversy.

The bump up is part of an overall increase in the Energy Department’s topline request of $27.2 billion, up 3.2 percent from fiscal 2012 levels.

“In light of the tight discretionary spending caps, this increase in funding is significant and a testament to the importance of innovation and clean energy in the country’s economic future,” the agency wrote in its request.

Practically, though, the request for new clean-energy spending is dead on arrival on Capitol Hill, where election-year partisan deadlock has all but assured that Congress won’t even pass a budget this year. And even if it did, the Republican-controlled House would be sure to attack any fresh Energy Department spending on renewable-energy programs. 

And while Obama’s proposed boost in clean-energy spending may seems bold in the face of the rain of criticism he knows will come from House Republicans, it represents a deeply scaled-down vision of his once-ambitious agenda. Campaigning in 2008, Obama proposed a sweeping clean-energy plan that would have budgeted $150 billion over a decade in federal spending. By comparison, clean-energy advocates say that this year’s relatively paltry proposal won’t come close to scaling up the nation’s clean-energy economy to the size once envisioned by the Obama administration.

The president’s budget request proposes once again to slash long-standing tax breaks to coal, oil, and gas companies — a move that would raise $46 billion over 10 years to help pay for his clean-energy vision.  Democrats have tried and failed for years to end these tax breaks, and they’ll likely have just as much success this year as in years past. The White House knows this, of course, but proposing to slash the tax breaks to oil companies gives Democrats an important talking point in an election year likely to see voter ire at high gasoline prices. It also helps set the stage for a debate on broad corporate tax reform in 2013. Although oil companies have fought the rollback of their tax breaks tooth and nail, they’ve said they would be willing to come to the table in 2013.

Most of the rest of the increase in the Energy Department funding request comes in boosts to its chief portfolio, managing the nation’s nuclear-weapons arsenal. The agency requests $7.6 billion for weapons activities, a 5 percent increase above the fiscal 2012 enacted level, for such things as continuing nuclear-weapon life-extension programs and sustaining the existing stockpile.

Military personnel could begin seeing more limited pay raises beginning in 2015 as part of the Pentagon’s efforts to trim $487 billion from its budget over the next decade.

In a release of the highlights of the Defense Department’s fiscal 2013 budget proposal, Defense Secretary Leon Panetta outlined plans to rein in growth of military compensation and benefits spending as part of the deficit reduction efforts. The department will seek savings through limiting pay raises, switching to a “tiered” approach to the TRICARE health insurance program and upping enrollment fees.

The department’s plan would allow full pay raises in 2013 and 2014 to keep pace with increases in private sector pay. Beginning caps on pay raises in 2015 will “give troops and their families fair notice and lead time before these proposed changes take effect,” Panetta said.

The current proposal makes no specific recommendations to target military retirement benefits as a source of savings, but calls on lawmakers to establish a commission to “conduct a comprehensive review of military retirement in the context of total military compensation,” according to the budget document released Thursday.

The department’s $525 billion fiscal 2013 budget request is $7 billion below the fiscal 2012 base budget and $45 billion below last year’s budget request for fiscal 2013.

The Pentagon hopes to achieve $260 billion of the necessary savings by fiscal 2017. According to the budget document released Thursday, $60 billion of those savings will come from “excess overhead, operations expenses and personnel costs,” including “reductions in planned civilian pay raises.” The budget document does not detail those reductions. The administration plans to unveil its full budget request Feb. 13.

WASHINGTON – U.S. factory output surged in December by the most in year. Stronger demand for business equipment, vehicles and energy offered the most visible evidence that manufacturing has roared back from the depths of the recession.

The Federal Reserve said Wednesday that manufacturing increased 0.9 percent in December, the biggest gain since December 2010. And the overall output of the nation’s factories, mines and utilities grew 0.4 percent in December. Warm weather dampened demand for energy produced by utilities.

Industrial output is less than 5 percent below its pre-recession peak, reached in September 2007. It has increased more than 14 percent since hitting a recession low in June 2009.

Manufacturing activity remains nearly 8 percent below its pre-recession peak in July 2007. Yet it has increased almost 15 percent from its recession low. The recession hit manufacturing harder than the overall industry, so its path to recovery has been a little slower.

Factories benefited in the second half of 2011 from a number of trends. Consumers bought more cars. Businesses boosted spending on industrial machinery and computers. And companies are restocking their warehouses again after cutting inventories over the summer.

Still, Europe’s debt crisis has already started to dampen demand for American exports. That could slow manufacturing and threaten growth in the 2012.

In December, factories made more goods that are used early in the production process — construction materials, metals and wood products. That typically signals that production of finished products will increase in the coming months.

Other reports showed manufacturing is picking. New orders rose and production increased last month, according to a private survey by the Institute for Supply Management. The government said factories hired a net 23,000 workers — the best job growth for the sector since July.

The New York and Philadelphia regions also saw a rise in demand for goods at the end of the year, according to surveys by the Federal Reserve banks in those areas. And the Federal Reserve Bank of New York said Tuesday that January’s growth in the region was the best in nine months.

In November, industrial production declined for the first time in seven months. And factory production, the biggest single element of industrial production, fell. Manufacturers produced fewer cars, home appliances, electronics and business equipment.

Economists blamed temporary factors for the decline, such as severe flooding in a region of Thailand that produces hard drives for many of the world’s computers.

Prior to November, factory output was strengthening after a spring slump brought on in part by the Japan earthquake and tsunami. That disrupted supply chains, which slowed U.S. auto production.

Car and truck manufacturers are busy again. U.S. automakers said November and December were the best sales months in 2011. GM’s December sales rose 5 percent, Ford’s climbed 10 percent and Chrysler’s surged a whopping 37 percent.

The last time the crime rate for serious crime – murder, rape, robbery, assault – fell to these levels, gasoline cost 29 cents a gallon and the average income for a working American was $5,807.

That was 1963.

In the past 20 years, for instance, the murder rate in the United States has dropped by almost half, from 9.8 per 100,000 people in 1991 to 5.0 in 2009. Meanwhile, robberies were down 10 percent in 2010 from the year before and 8 percent in 2009.

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The declines are not just a blip, say criminologists. Rather, they are the result of a host of changes that have fundamentally reversed the high-crime trends of the 1980s. And these changes have taken hold to such a degree that the drop in crime continued despite the recent recession.

Because the pattern “transcends cities and US regions, we can safely say crime is down,” says James Alan Fox, a criminologist at Northeastern University in Boston. “We are indeed a safer nation than 20 years ago.”

He and others give four main reasons for the decline:

Increased incarceration, including longer sentences, that keeps more criminals off the streets.

Improved law enforcement strategies, including advances in computer analysis and innovative technology.

The waning of the crack cocaine epidemic that soared from 1984 to 1990, which made cocaine cheaply available in cities across the US.

The graying of America characterized by the fastest-growing segment of the US population – baby boomers – passing the age of 50.

The data point to a persistent perception gap among Americans. Despite strong evidence of crime dropping over recent decades, the public sees the reverse. “Recent Gallup polls have found that citizens overwhelmingly feel crime is going up even though it is not,” says Professor Fox. “This is because of the growth of crime shows and the way that TV spotlights the emotional. One case of a random, horrific shooting shown repeatedly on TV has more visceral effect than all the statistics printed in a newspaper.”

In many police departments across the US, changes during the past decade or more are hard to overstate, say many law enforcement experts.

Technology has given detectives powerful new tools with which to analyze blood and DNA samples or other forensic evidence, for instance.

Computerized “hot spot” crime mapping has also helped police connect dots in ways that were more difficult before.

From pushpins to databases

“We used to put pins on a map to figure out what the patterns were and where to concentrate our limited resources,” says Tod Burke, a former police officer in Maryland who now teaches criminal justice at Radford University in Virginia. “Now we have databases and computers. It’s really gotten a lot more sophisticated.”

Beyond technology, law enforcement personnel are much better educated and trained today than ever before, adds John Paitakes, professor of criminal justice at Seton Hall University in New Jersey. They’ve also benefited from leaders like William Bratton, who recast policing in Boston, New York City, and Los Angeles by applying the “broken window” theory posited by social scientist James Q. Wilson in 1982. The theory held that run-down and vandalized areas were more prone to serious crime than were areas kept in better order.

Mr. Bratton has proved that “by handling the smaller crimes and dealing with the quality of the local environment, you prevent some of the bigger crimes,” says Professor Burke.

Communities have also become smarter at addressing crime. Social programs and services for youths have successfully targeted those hours after school when most youth crime is committed – though recent budget cutbacks could endanger those advances.

“There is evidence that … gang intervention programs involving the police and community leaders, after-school programs, and community outreach programs are having a positive effect,” says Frederic Reamer, professor of social work at Rhode Island College in Providence.

Not all the steps taken against crime are uniformly seen as positive, though.

Mandatory-sentencing rules, such as “three strikes” laws that have spread to states including Cali­fornia, Flor­ida, and Pen­nsyl­vania since 1993, have had a positive impact on crime rates. But Fox of Northeastern suggests that the cost of incarcerating more Americans has other less-desirable effects.

“It certainly is true that while someone is incarcerated they can’t be out on the streets doing crime,” he says. “But at what cost to the education that could keep them from crime in the first place? We are robbing Peter – i.e., the education system – to pay Paul – the penal system. It’s impossible to call that a clear victory.”

There are additional theories as to why crime has dropped, theories that some see as insightful and others say are overstated. A 2001 study by economists John Donohue of Yale and Steven Levitt of the University of Chicago suggest that legalized abortion has reduced crime.

“These estimates suggest that legalized abortion is a primary explanation for the large drops in murder, property crime, and violent crime that our nation has experienced over the last decade,” they wrote, arguing that the 1973 US Supreme Court decision Roe v. Wade helped preclude thousands of unwanted fetuses from being born into less-than-ideal environments. “Indeed, legalized abortion may account for as much as one-half of overall crime reduction.”

But Fox’s own analysis shows that such conclusions discount the significant decline in serious crime among age groups that would have been born prior to that landmark court decision. “It’s an interesting concept with some intuitive appeal, but I think they’ve overstated the case,” says Fox.

Gangs still difficult to address

One area that remains a problem for law enforcement is gangs, several analysts say. That’s primarily because stopping gang activity as it happens and jailing youths do not get at the heart of the problem. And now gangs are able to use the Internet as a recruiting tool.

“Gangs are now able to recruit with the click of a mouse rather than knock on doors,” says Burke. “It’s much easier for them to blanket the youth of their areas with the benefits for joining.”

“In essence, there are no shortcuts to success when it comes to a community gang problem,” says Joe Mollner, senior director of delinquency prevention for the Boys & Girls Clubs of America. “Arresting the violent offenders will help some, but unless there is a system in place to work with potential gang members who very likely will become violent offenders, we are not addressing the source of the problem.”

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