On 29 October 2008, Secretary of Defense Robert Gates issued Department of Defense Directive 1200.17, establishing the overarching set of principles and policies to promote and support management of the Reserve Components as an operational force. Issued in a time of war and generous budgets, the Army Reserve spent freely to maintain its higher standards of deployability and operational tempo. As the United States enters another post-war period characterized by reductions in forces and spending, the Army Reserve must develop an approach to fiscal constraints pursuant to Secretary of Defense Chuck Hagel's budget reduction guidance, "to do more," while avoiding what Army Chief of Staff, Raymond Odierno has called the "perfect storm," of cascading economic effects across the Army. Throughout history, reserve forces regularly receive less funding during interwar periods and experience the reciprocating effects on manpower, training, and equipment. If unabated, uncertain financial constraints will eventually limit readiness and relevance. However, by designing a strategy to optimize the force while relying on Soldier ingenuity, the Army Reserve can balance readiness and continue to innovate as the United States and its military adapt to economic conditions.

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