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In 1981, he co-sponsored the Gramm-Latta Omnibus Reconciliation Bill which implemented President Ronald Reagan's economic program including an increase in military spending and some minor cuts in discretionary and entitlement spending.
In a report written with John D. Steinbruner in 1991 for the Brookings Institution, after the dissolution of the Soviet Union, Kaufman opined that the U.S. could meet its post-Cold War defense obligations after cutting military spending by a third.
During the post World War II era, much of Aroostook County's economy was dominated by military spending.
The death of Joseph Stalin on March 5, 1953, briefly left a power vacuum in the Soviet Union and offered a chance for rapprochement with the new regime, as well as an opportunity to decrease military spending.