According to marketwatch, the Department Defense has proclaimed that they will reduce the spendings for the war in Iraq as the war slowly comes to an end. The process they choose to do this is by lowering the fiscal budget for 2012 since the 2011 fiscal budget which effectively froze spending this year at the 2010 level. The face value for the 2012 core budget was 1% growth above the 2011 budget.
"We expect growth to turn negative next year, which is why we remain cautious on defense," Spingarn said.
As the consumer is taxed by the fiscal policy, this money is then transferred to the government which is "spent" on the military as well as other things. Without this budget, the government uses the money at the President's and Congress' discretion which will affect the household and businesses. By bringing home the troops, the President will then use the same fiscal budget, which will become lowered, on things better for the consumer.