Showing posts with label U.S. military spending. Show all posts
Showing posts with label U.S. military spending. Show all posts

Wednesday, January 6, 2016

Things That Make You Go Boom: U.S. Spending On Military Aircraft Surges Most Since September 11

Tyler Durden's picture

http://www.zerohedge.com/news/2016-01-06/things-make-you-go-boom-us-spending-military-aircraft-surges-most-september-11
Now that the subprime-funded "growth dynamo" that kept the US economy chugging along over the past year has finally choked, as we saw yesterday when auto sales posted the weakest print in half a year, there is just one industry that is keeping US factory orders, which have already declined for 13 consecutive months, from an all out implosion.
War.
As the chart below shows, spending on military aircraft (and parts), mostly purchased by US "allies" in the middle east and elsewhere, just soared to $8.2 billion, a 46.9% jump in one month, and the highest monthly spending spree since... Sept.11.

Thank you war.
/sarcasm 

Thursday, October 29, 2015

The 6 Reasons China and Russia Are Catching Up to the U.S. Military

Why the Gap In Military Superiority Is Closing

China and Russia are still behind the U.S. militarily.  But they are both showing surprising breakthroughs that – sometime down the road in the future – could threaten U.S. hegemony.
The Washington Times reported last month:
Defense Secretary Ashton Carter on Wednesday warned Russia and China are quickly closing the military technology gap with the U.S. as inconsistent military budgets and slower innovation threaten America’s lead in the military world.
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“It’s evident that nations like Russia and China have been pursuing military modernization programs to close the technology gap with the United States,” he continued. “They’re developing platforms designed to thwart our traditional advantages of power projection and freedom of movement. They’re developing and fielding new and advanced aircraft and ballistic, cruise, anti-ship and anti-air missiles that are longer-range and more accurate.”
The SecDef issued this warning before Russia stunned the U.S. with its long-range missile and electronic communications-jamming capacities.
How could this be happening, when U.S. military spending dwarfs that from the rest of the world?
There are six reasons …
1. Corruption and Pork.   America spends a large percentage of it’s defense spending on unnecessary military programs that:
  • The generals say aren’t helpful and don’t even want
  • Redundant personnel, programs and systems which don’t increase our war-fighting capacity
  • Equipment which is built and then immediately mothballed before it is ever used
Indeed – as many lottery winners and star athletes will tell you – it’s easy to piss away even huge sums of money over a couple of years’ time without discipline.
And plain old corruption is wasting huge sums and dramatically weakening our national security.
How much are we talking about?
Well, here’s some indication: $8.5 trillion dollars in taxpayer money doled out by Congress to the Pentagon since 1996 … has never been accounted for.
2. Fighting the Wrong Wars. A closely-related issue is that the war-fighting assets are being squandered, spread thin and distracted by fighting wars which decrease our national security.
The wars in Iraq and Afghanistan were the most expensive in U.S. history, costing between between $4 trillion and $6 trillion dollars.
And we spent additional boatloads of money carrying out regime change in Libya, Syria and elsewhere.
But these wars have only caused ISIS and the Taliban to flourish.
Indeed, the majority of our defense spending is – literally – making us less secure because we’re spending money to fight the wrong wars:
  • We’re overthrowing the moderates who help insure stability
  • We’re arming and supporting brutal dictators … which is one of the main reasons that terrorists want to attack the U.S.
  • We’ve fought a series of wars for petrochemicals, instead of security
  • We expend huge sums of money on mass surveillance … but top security experts agree that mass surveillance makes us MORE vulnerable to terrorists (we’re targeting the wrong guys)
3. Never-Ending War Destroys the Economy. We’re in the longest continuous period of war in U.S. history.  The Afghanistan War has  been going on for 14 years … as long as the Civil War (4 years,), WW1 (4 years) and WW2 (6 years) COMBINED.
Wars which drag on are horrible for our economy.  A weak economy – in turn – makes it more difficult to sustain a leadership role in defense in the long-run.
And Americans are sick and tired of war.  If our national security was actually threatened, it might be hard for the government to rouse our commitment and motivation.
4. More Bang for the Buck. China has the world’s largest economy when measured by “purchasing power parity” … meaning how much Chinese can buy in their their local currency in their local economy. And see this.
Therefore, China can buy locally-produced military parts and services more cheaply than the U.S. can.
As Bloomberg noted last year:
The lowest-paid U.S. soldiers earn about $18,000 a year. In comparison, in 2009, an equivalent Chinese soldier was paid about a ninth as much. In other words, in 2009, you could hire about nine Chinese soldiers for the cost of one U.S. soldier.
Even that figure doesn’t account for health care and veterans’ benefits. These are much higher in the U.S. than in China, though precise figures are hard to obtain. This is due to higher U.S. prices for health care, to higher prices in general, and because the U.S. is more generous than China in terms of what it pays its soldiers. Salaries and benefits, combined, account for a significant percentage of military expenditure.
But labor costs aren’t the only thing that is cheaper in China. Notice that China’s gross domestic product at market exchange rates is only two-thirds of its GDP at purchasing power parity. This means that, as a developing country, China simply pays lower prices for a lot of things. Some military inputs — oil, for example, or copper — will be bought on world markets, and PPP won’t matter. For others, like complicated machinery, costs are pretty similar. But other things — food or domestically manufactured products — will be much cheaper for the U.S.’s developing rivals than for the U.S.
Those who follow global security issues have known about this issue for a long time. But somehow, this fact hasn’t penetrated the consciousness of pundits or made its way into pretty, tweet-able graphs.
5. Theft. The U.S. Naval Institute, Fiscal Times and others document that the Chinese have greatly accelerated their weapons development timeline by spying on the West and shamelessly copying our military inventions and designs.
If the NSA and other spying agencies had used their resources to stop foreign governments from stealing our crown jewels – instead of using them to gain petty advantages for a handful of knuckleheads – we’d be a lot better off today.
6. Geography.  Russia is almost twice the size of the U.S.  Russia and China together are so massive – forming such a giant swath of land-based territory, so much closer to the Middle East than America is – that it gives their militaries an advantage.
Bloomberg points out:
The U.S., situated in the peaceful, relatively unpopulated Western Hemisphere, is very far away from the location of any foreseeable conflict. China isn’t going to invade Colorado (sorry, “Red Dawn” fans!), but it might invade Taiwan or India. Simply getting our forces to the other side of the world would require enormous up-front expenditures.
The National Interest notes:
“Defeating China in these scenarios [Taiwan and South China Sea] could nonetheless be difficult and costly for the United States’ primarily as a result of the geographic advantages that China enjoys, as well as specific systems capabilities.”
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A recent RAND report, “The US China Military Scorecard,” … argues that China is catching up to the U.S., is becoming more assertive and confident, and has geography on its side.
And Russia’s proximity to Ukraine, the Baltics and other neighboring countries gives it a huge advantage.
Postscript: Sadly, because we’ve squandered our resources, war games show that the U.S. is no longer invincible.

Friday, August 21, 2015

When $8.5 Trillion is Chump Change

Three cheers for Reuters pointing out that the Pentagon can’t explain what it did with $8.5 trillion that taxpayers gave it between 1996 and 2013.
Three trillion cheers for a blogger who is pointing out that this fact renders many other concerns ludicrous, and recommending that people bring it up at every opportunity:
“What’s that? Body cameras for all cops will be too expensive? How about we find 1/10,000th of the money we sent to the Pentagon.”
“Oh really? There’s 500 million in provable food stamp fraud going to poor people how about the $8.5 TRILLION the pentagon can’t account for?”
“Oh really? You think Obamacare is going to cost us almost a trillion dollars over 15 years? How about the 8.5 Trillion that just disappeared into the ether at the Pentagon? What’s your take on that?”
“Oh really, you’re concerned about deficit spending and the debt? Fully 1/3 of the national debt is money we sent the Pentagon and they can’t tell us where it went. It’s just gone.”
“College for everyone will cost too much? You must be really pissed at the 8.5 Trillion, with a ‘t’, dollars the pentagon’s spent and can’t tell us where it went.”
This is all very good as far as it goes, whether you like the body cameras or corporate health insurance or other items or not. We could add an unlimited number of items including some expressing our concern for the other 96% of humanity:
“You can end starvation and unclean water for tens of billions of dollars; what about that $8.5 trillion?”
Et cetera.
But here’s my real concern. The $8.5 trillion is just the bit that the Pentagon can’t account for. That’s far from all the money it was given. U.S. military spending, spread across several departments with the biggest chunk of it to the Department of so-called Defense, is upwards of $1 trillion every year. Over 17 years at the current rate, which rose sharply after 2001, that’s upwards of $17 trillion.
Imagine that the Pentagon accounted for every dime of that missing $8.5 trillion, named every profiteer, documented the life history of every man, woman, and child killed, and passed the strictest audit by an independent team of 1,000 accountants reporting to 35 Nobel Laureates — if that happened, I ask you, exactly what difference would it make?
Why is the $8.5 trillion that went to unknown purposes worse than the other trillions that went to known and named weapons and dictators and militants and recruitment campaigns? The documented and accounted for spending all went to evil purposes. Presumably the unaccounted for “waste” did the same. What’s the difference between the two?
As World Beyond War points out, war has a huge direct financial cost, the vast majority of which is in funds spent on the preparation for war — or what’s thought of as ordinary, non-war military spending. Very roughly, the world spends $2 trillion every year on militarism, of which the United States spends about half, or $1 trillion. This U.S. spending also accounts for roughly half of the U.S. government’s discretionary budget each year and is distributed through several departments and agencies. Much of the rest of world spending is by members of NATO and other allies of the United States, although China ranks second in the world.
Wars can cost even an aggressor nation that fights wars far from its shores twice as much in indirect expenses as in direct expenditures. The costs to the aggressor, enormous as they are, can be small in comparison to those of the nation attacked.
It is common to think that, because many people have jobs in the war industry, spending on war and preparations for war benefits an economy. In reality, spending those same dollars on peaceful industries, on education, on infrastructure, or even on tax cuts for working people would produce more jobs and in most cases better paying jobs — with enough savings to help everyone make the transition from war work to peace work.
Military spending diverts public funds into increasingly privatized industries through the least accountable public enterprise and one that is hugely profitable for the owners and directors of the corporations involved — thus concentrating wealth.
While war impoverishes the war making nation, can it nonetheless enrich that nation more substantially by facilitating the exploitation of other nations? Not in a manner that can be sustained.
Green energy and infrastructure would surpass their advocates’ wildest fantasies if the funds now invested in war were transferred there.