In fiscal year 2016, the Pentagon issued $304 billion in contract awards to corporations—nearly half of the department’s $600 billion-plus budget for that year.
the biggest beneficiaries by a country mile were
- Lockheed Martin ($36.2 billion),
- Boeing ($24.3 billion),
- Raytheon ($12.8 billion),
- General Dynamics ($12.7 billion), and
- Northrop Grumman ($10.7 billion).
Together, these five firms gobbled up nearly $100 billion of your tax dollars, about one-third of all the Pentagon’s contract awards in 2016.
Health care companies like
- Humana ($3.6 billion),
- UnitedHealth Group ($2.9 billion), and
- Health Net ($2.6 billion) cash in as well,
and they’re joined by, among others, pharmaceutical companies like
- McKesson ($2.7 billion) and
universities deeply involved in military-industrial complex research like
- MIT ($1 billion) and
- Johns Hopkins ($902 million).
.. The heads of the top five Pentagon contractors—Lockheed Martin, Boeing, Raytheon, General Dynamics, and Northrop Grumman—made a cumulative $96 million last year.
These are companies that are significantly or, in the cases of Lockheed Martin and Northrop Grumman, almost entirely dependent on government dollars.
.. Donald Trump initially spent a fair amount of tweeting energy bragging about how he was going to bring such contractors to heel on their pricing practices for weapons systems. In fact, he’s already turned out to be good news indeed for major contractors, most of whom have seen sharp upturns in revenues and profits
.. Trump has proven eager to lift restrictions on U.S. weapons sales abroad (and enlist State Department and Pentagon officials to spend more of their time shilling such weaponry).
.. The arms industry’s investment in lobbying is even more impressive. The defense sector has spent a total of more than $1 billion on that productive activity since 2009, employing anywhere from 700 to 1,000 lobbyists in any given year.
.. you’re talking about significantly more than one lobbyist per member of Congress, the majority of whom zipped through Washington’s famed “revolving door”; they moved, that is, from positions in Congress or the Pentagon to posts at weapons companies from which they could proselytize their former colleagues.
.. Two analysts from U.S. war colleges have estimated that about 300 deliverable nuclear warheads would be enough to dissuade any nation from attacking the United States with a nuclear weapon.
.. And note that the current trillion-dollar “modernization” program for the nuclear arsenal was initiated under President Barack Obama, a man who won the Nobel Prize for his urge to abolish all such weaponry.
.. In 2011, a study by economists from the University of Massachusetts made this blindingly clear. What they showed was that military spending is the worst way to create jobs. Putting the same money into any other area—from infrastructure to transportation to alternative energy to healthcare or education—creates up to twice as many jobs as military spending does.
.. Contractors aid and abet the process of investing in the Pentagon by routinely exaggerating the number of jobs their programs create.
.. the best jobs generated by Pentagon spending are the ones for well-heeled lobbyists and overpaid corporate executives.
.. So the next time someone suggests that the Pentagon needs yet more money for the troops, just remember that what they’re actually talking about are troops of overpaid defense contractors, not members of the armed forces.
The Pentagon’s costliest programs to buy more than 2,400 planes to replace aging combat jets have long been viewed by experts and lawmakers as the most egregious example of cost overruns.