With the wars in Iraq and Afghanistan to pay for, the 1990s "peace dividend" has given way to a substantial increase in military spending. This spending, combined with increases in non-defense related government spending and the long-term cost projections for entitlement programs, prompt a vital question: can America afford the military many say we need? Is the solution new taxes, new revenue sources, spending cuts--or all of the above? What impact will these fiscal factors have on America's role in the world? How big a military do we need, and can such a military be accommodated given America's fiscal situation?

AEI's Frederick W. Kagan and Thomas Donnelly will be joined by Robert D. Hormats, vice chairman of Goldman Sachs International and author of the new book The Price of Liberty: Paying for America's Wars, to discuss the likely future path of military spending, the factors driving that path, and the possible lessons of history. AEI's Kevin A. Hassett will moderate.