Posen ‘16 (Barry R. Posen, Ford International Professor of Political Science @ MIT and Director of their Security Studies Program, "The High Costs and Limited Benefits of America’s Alliances," National Interest, 8-7-2016, https://nationalinterest.org/blog/the-skeptics/the-high-costs-limited-benefits-americas-alliances-17273, Date Accessed: 7-18-2019, SB).
Finally, these alliance commitments create a special kind of "moral hazard." The extravagant insurance that we offer these countries encourages them to engage in risky behavior. For the Europeans and Japanese, this consists of buying too little military insurance for themselves. Their defense budgets are too small even to sustain their present force structures. U.S. defense secretaries from both parties dutifully chide allies for their shortfalls and then go on to ignore them as we move to provide more security welfare. In NATO, for example, all but four of the allies fail to spend 2 percent of GDP on defense, an alliance commitment, while the United States spends 3 percent excluding war costs. (Germany, the fourth-most-productive economy in the world and the NATO ally best placed to assist the Baltic states, spends barely 1.2 percent.) Yet in the face of European concerns about Russian adventurism, the United States has rushed into the breach with five billion dollars of additional spending on European security over the last three fiscal years, which the Pentagon smuggled into the budget for Overseas Contingency Operations, whose purpose is to pay for actual unexpected war costs, and which therefore escapes the scrutiny of normal budget politics.
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