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The purpose of this thesis is to examine the primary factors influencing the defense budgeting decisions of the Truman and Bush '41 Administrations. In particular, the thesis examines events following the end of the World War II and the Cold War. This examination and analysis should be of interest for the Obama Administration due to the many apparent parallels between these administrations. Like the Obama Administration, Truman and Bush faced an uncertain threat environment, economic concerns including inflation and high employment, and the challenge of navigating the nation through the end of a war. By understanding how these factors influenced each respective administration, Obama can better construct tomorrow's defense budgets.