Before America becomes two countries--one developed, the other impoverished--political leaders need to follow Gorbachev's lead and renounce the arms race. President Bush should propose a defense budget with deep reductions not just a budget that only shows reduction after inflation is taken into account.

Bush should also abandon his massive funding proposal for the Strategic Defense Initiative--an unworkable system which only perpetuates a Cold War mentality, encourages military planners to ponder a "winnable" nuclear war, and is premised on the assumption that stopping 95 percent of incoming missiles is enough.

Another tragic example of the fiscal myopia of the Reagan era is the paucity of investment in America's future economic health, by way of improvements in human resources and physical infrastructure. Between 1984 and 1986, while military spending grew 13 percent, government spending for economic programs (including transportation and civilian research and development) declined by 0.6 percent, and federal funding for education declined by 1.8 percent.

The U.S. cannot indefinitely survive on its rich inheritance of public facilities from past generations. In order to remain competitive, we must invest in roads, schools, airports, public transportation, basic research, worker retraining and other expensive necessities that will pay off down the road. In other words, we need to forego some consumption today in order to ensure the productivity and prosperity of future generations. As the most gluttonous consumer in the economy, the Pentagon must bear the brunt of the cost.

Bush should consider another important lesson from his Soviet counterpart: no nation, regardless of its economic system, can indefinitely support a parasitic military burden if neglects the health of the economic and human resources that sustain it.

If Bush refuses to learn form a "commie," perhaps he will heed the advice of the godfather of capitalism, Adam Smith: "The whole army and navy are unproductive labourers. They...are maintained by a part of the annual produce of the industry of other people. Their service, how honourable, how useful, or how necessary soever, produces nothing."