Although this will be a time of great financial stress, substantial savings should be occurring due to down-sizing of the military.  To give an idea of the potential size of the savings, 30% of the total $2.13 trillion of Fiscal Year 2005 taxes went for current military expenses.  That would give a total of $639 billion from which savings could be realized.  Furthermore, an additional 18%, or about $383 billion was spent on past military expenses.  Although no immediate savings would be expected in the past military category, it would promise great savings in the future as down-sizing takes place.

Though savings would accrue with down-sizing, unemployment would also be created, so comprehensive programs of public works, reeducation, retraining and job placement would need to take place; so there is much potential for savings from this process, but there are also many expenses to be covered by them.