From the Canadian side of the border...
We do acknowledge the fact that the US army would come over to cover our asses if anyone attacked Canada, but why would anyone attack Canada? No country really holds a grudge against us, and if they hate us, chances are they really hate the US.
No one would declare war on Canada (or France, or Spain, well the EU block) because in a world where alliances are clearly shown, only a madman would attempt to attack a EU country.
Anyways back to the point... Today's Federal Budget granted 5000 more troops, salary raises for the personnel and some new nifty gadgets to use. Its the biggest increase in military spendings in the last 20 years (although half of those were spent slashing the Defense budget) We just need to stay up to date in equipment, which we have failed to do, the Chicoutimi (aka subamrine who doesnt sink, can barely float) and our marvelous sea kings, which proved so worthy..... 40 years ago.
We are not interested in waging war, just helping others out, we cant afford to wage war anyways, with only a population of 30 million, we cant put the numbers behind. More population = growth in GDP that is exponential not proportional.... China is porving this lately. This is usually true, except in a few cases where all the growth has been sucked up by a too large population increase.
Like I said we lack numbers, we gonna add 5000 new troops, and thats big, the US army recruits around 90000 men a year, on a normal years if im not mistaken, for a population ten times our size recruiting 16 times more than our extraordinary measure... (the Canadian military total soldiers is around 60000-65000, and was at 90000 during the Gulf War era)
But then again, we still can give you advice about your budget. Your economy is vastly more weighty than ours in the world scale, yet you produce a deficit that is not even "real". Such vast sums of money could lead to bankruptcy across, well 99% of the countries. We learned sane management, we preserve our way of living, free healthcare, education (to some extent), and a bunch of other things. But thats how we choose to live, Americans have a way of life too, but right now that way of life is not being managed well, sorry to say this but Mankiw is not a economist or a trustworthy source of economic knowledge, hes a politician now, and he does what he must to stay in power. He used to have good ideas, now he uses his status to manipulate things to cover up a bit.
Being in a deficit may be fun, but one day those 400 billion deficits will come back.... Keep that in mind, were already paying here in Canada for the fun times of past generations (praise the almighty Olympic Stadium of Montreal! huzzah!) And a bunch of other things ^^
Well have a good night, and dont listen to Mankiw, hes biased.