Saturday, February 7, 2009

The Pentagon as an Engine of Economic Recovery?

How can a country headed into A State of Depression justify spending a trillion dollars a year on an already grotesque defense establishment? I wonder if a standing army doesn't constitute a violation of the spirit, if not the letter, of the 2d and 3d amendments to the US Constitution.

WINSLOW T. WHEELER, "Why the Pentagon is Not a Jobs Engine: Save the Economy by Cutting the "Defense" [Offense] Budget":

Harvard economist Professor Martin Feldstein has advocated in the Wall Street Journal (‘Defense Spending Would Be Great Stimulus’, 24 December 2008) the addition of USD30 billion or so to the Pentagon’s budget for the purpose of generating 300,000 new jobs. It is my assertion, however, that pushing the DoD as a jobs engine is a mistake....

Even other economists are sceptical about Feldstein’s numbers. An October 2007 paper from the University of Massachusetts-Amherst found that each USD1 billion spent on defence would generate 8,555 jobs, not the 10,000 calculated by Feldstein. Given the problems with the F-22 just discussed and the lack of jobs I believe it will generate, even this lower estimate sounds extremely optimistic.

Chalmers Johnson on the Pentagon:
Each year, we Americans account for nearly half of all global military spending, an amount larger than the next 45 nations together spend on their militaries annually.
...
Our problems are those of a very rich country which has become accustomed over the years to defense budgets that are actually jobs programs and also a major source of pork for the use of politicians in their reelection campaigns.

Given the present major recession, whose depths remain unknown, the United States has better things to spend its money on than Nimitz-class aircraft carriers at a price of $6.2 billion each (the cost of the USS George H. W. Bush, launched in January 2009, our tenth such ship) or aircraft that can cruise at a speed of Mach 2 (1,352 miles per hour).

...

By the time the prototype F-22 had its roll-out on May 11, 1997, the Cold War was nearly a decade in its grave, and it was perfectly apparent that the Soviet aircraft it was intended to match would never be built. Lockheed Martin, the F-22's prime contractor, naturally argued that we needed it anyway and made plans to sell some 438 airplanes for a total tab of $70 billion.

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