Tag: military spending
Trump's Gigantic Increase In Military Spending Dwarfs Everything Else

Trump's Gigantic Increase In Military Spending Dwarfs Everything Else

Trump is asking for $1,500,000 million for the military for next year. That’s close to $600 billion (adjusted for inflation) more than we were spending on the military in fiscal year 2025, before Trump took office.

This increase is huge by any measure. It comes to around $4,600 per household. It is around eight percent of the total budget. This spending request dwarfs sums that are often the subject of major debates in Washington.

For example, last year, Democrats pushed to have the enhanced subsidies in the Affordable Care Act exchanges extended. This would have cost $30 billion a year, one twentieth of what Trump and Hegseth are demanding.

People may recall Elon Musk gleefully putting the USAID into the “wood chipper” last spring. While ending this program is expected to lead to four million additional deaths over the next four years, it only saved around $35 billion a year. That is less than six percent of the increase in military spending that Trump is asking for.

The annual cost of extending the enhanced child tax credit, which cut child poverty in half, was around $100 billion a year, less than one-fifth of Trump’s proposed increase. And the annual appropriation for the Corporation for Public Broadcasting was $550 million, less than one thousandth of the additional spending for the military that Trump is demanding. (It’s in the chart, just small to see.)

People need to know that Trump’s military spending request is really big money, compared to almost anything else that ever comes up for public debate for Congress. Unfortunately, because of incompetent or corrupt budget reporting, few news accounts make any effort to put these huge numbers in a context that makes them understandable for their audience. As a result, most people will probably have little idea of what is at stake with this military request.

Any self-proclaimed deficit hawk who is not all hair on fire about Trump’s budget demand is a lying hypocrite who only uses concerns about the deficit to argue against programs they don’t like. We got along fine with the former level of military spending, which almost everyone, including Donald Trump in his first term, considered adequate.

Is the argument that in just 18 months in office, Trump has made the world so much less safe that we have to increase the defense budget by two-thirds? Most of us knew that making our former allies into enemies was not a good idea, but Trump is placing a huge price tag on this mistake. And remember, this is Trump’s own number, not his critics’.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.


Trump and Hegseth

Iran War's Explosive Costs Could Finance Health Care Coverage For Millions

The Pentagon is asking the White House for an additional $200 billion to fight the president’s ill-conceived war in the Middle East.

While it’s unclear from the initial news reports whether this is a one-year or multi-year appropriation, the size of the request suggests this war is going to drag on a lot longer and involve far more manpower and firepower than President Trump and Secretary of Defense Pete Hegseth have let on. The now three-week-old war of choice has already left 13 soldiers dead and more than 140 wounded. It has already cost over $12 billion, according to reported estimates.

Let’s put that cost and this latest request in perspective. The $12 billion already spent is enough to have extended the Affordable Care Act subsidies for close to six months.

Instead, over two million or nine percent of people in ACA health insurance plans last year dropped them for this year (the first without the expanded subsidies) because they couldn’t afford the huge increase in their premiums, according to a new survey released yesterday by KFF, a health care think tank. That’s nearly a 10 percent increase in the ranks of the uninsured, which alone will bring the uninsured rate close to 10 percent overall.

And many more will drop coverage in the years ahead, given ACA marketplace purchasers’ concerns about their ability to pay the new, higher rates without subsidies.

The $200 billion the Pentagon is requesting is sufficient to extend the ACA subsidies for over five years. Where did I get that estimate? The failure to extend the subsidies helped pay for the $7.7 trillion in tax cuts for the wealthy and large corporations in last year’s One Big Ugly Bill (OBUB). It reduced health care spending by about $350 billion over ten years, an average of $35 billion a year. $200 billion ÷ $35 billion = 5.7 years.

The same math applies to the alleged Medicaid “savings” in the OBUB. Imposing work requirements (a lexicographic subterfuge for erecting bureaucratic barriers that will make it difficult for qualified Medicaid beneficiaries to re-certify their eligibility) will cut an estimated $326 billion from the program over the next decade, according to the Congressional Budget Office. Cuts to the federal share of aid to state Medicaid programs will “save” the federal government another $300 to $400 billion. The two together add up to at least $65 billion a year ripped from Medicaid.

To sum up: Cuts in ACA subsidies and Medicaid in the OBUB will average over $100 billion a year over the next decade. At the rate the Trump regime is spending on the war against Iran, the Pentagon will eat that up in two years.

This accounting doesn’t take into consideration the long-term costs of U.S. involvement in overseas quagmires of its own making. The Iraq War, which began in 2002, cost close to $1 trillion in direct military spending. The long-term cost of caring for the wounded, veterans’ special health care needs, and related spending has been estimated to cost an additional $2 to $3 trillion.

Those of us old enough to remember the Vietnam War will recall the “guns and butter” debate that accompanied President Lyndon B. Johnson’s slow descent into that quagmire. LBJ’s advisers assured him the U.S. could do both.

Wrong. Inflation began escalating by the late 1960s, throwing the country into a recession by December 1969. During the decade after regular combat began in 1965, prices rose by a total of 176 percent, twice the rate of inflation during the previous decade. The biggest increases were triggered by soaring oil prices due to an Arab oil embargo after the 1973 Middle East war.

President George W. Bush tried his hand at guns and butter in 2003 when, to bolster his reelection chances amid widening opposition to the Iraq War, he pushed through an unfunded Medicare drug benefit and pushed further deregulation of the financial sector. By the end of his term in office, the resulting housing bubble and sub-prime lending crisis led to the worst economic downturn since the Great Depression.

While looking up some of the specifics of that history, I stumbled across the origination of the phrase “guns and butter.” It wasn’t a 1960s coinage. It was popularized during the 1930s by German Reich Marshall Hermann Goering, who defended Germany’s huge military build-up by saying, "Guns will make us powerful. Butter will only make us fat."

It was Theodor Reik, a Jewish intellectual who fled Nazi Germany, who in 1965 took issue with the idea that history repeats itself. “This is perhaps not quite correct,” he said. “It merely rhymes.”

What does the Trump regime’s escalating military spending amid evisceration of social spending rhyme with?

Merrill Goozner, the former editor of Modern Healthcare, writes about health care and politics at GoozNews.substack.com, where this column first appeared. Please consider subscribing to support his work.

Reprinted with permission from Gooz News


House GOP Fights Pandemic Relief But Demands Big Hike In Military Spending

House GOP Fights Pandemic Relief But Demands Big Hike In Military Spending

The top Republicans on the House Armed Services Committee are demanding a massive increase in the defense budget for 2022 — days after voting against pandemic relief.

In a letter to President Joe Biden on Thursday, the committee's top Republican — Rep. Mike Rogers of Alabama — and the ranking members of all seven subcommittees demanded a three to five percent increase in Pentagon spending.

The government already spent $741 billion on defense in Fiscal Year 2021.

The legislators asked Biden "to reject demands from many on the left to cut or freeze defense spending at current levels." Instead, they asked that he "continue the progress made under the Trump administration to rebuild our military by requesting a 3 to 5 percent increase over the inflation adjusted FY21 enacted level."

The letter was signed Rogers and Reps. Michael Turner (OH), Doug Lamborn (CO), Rob Wittman (VA), Vicki Hartzler (MO), Elise Stefanik (NY), Trent Kelly (MS), and Jim Banks (IN).

Every one of the eight voted on Saturday against Biden's $1.9 trillion American Rescue Plan.

Hartzler explained her opposition as being based on fiscal responsibility. "By pushing this bill through Congress in the name of 'relief,' we are recklessly gambling with our future while expanding our national deficit by trillions," she said, adding "now is not the time to go further in debt by passing wish-list pork for the Speaker disguised as 'COVID relief.'"

Banks objected to the bill as well on those grounds as well, predicting that every American's "share of the national debt would rise by $6,000" and average wages would decline.

With a record debt of more than $28 trillion and an estimated 2020 deficit of over $3 trillion — plus an ongoing pandemic — progressives are urging cuts to the defense budget.

Though all eight Republicans have long been backers of military spending, they have also attempted to present themselves as deficit hawks, committed to balancing the budget and reigning in the growing national debt.

A spokesperson for Banks said in an email that he has proposed a five-year balanced budget plan, which would include enough in offsets to cover this increase. Spokespeople for the other lawmakers did not immediately respond to an inquiry for this story.

But Wittman is a co-sponsor of a constitutional amendment to require a balanced budget and wrote in 2019 that "The longer we fail to address our nation's spending problem, the harder it becomes to solve the problem of our country's crippling debt."

Rogers said in 2011: "This debt will be more than just a heavy burden we will place on the backs of our children and grandchildren."

Hartzler called in 2016 for "a budget that balances, puts Americans' priorities first, and truly addresses the enormous debt racked up after years of failed top-down policies from [the Obama] administration."

Banks said in 2019: "Our exploding federal debt is one of the gravest national security threats facing our Nation and has the potential to significantly harm future generations of Americans."

Just last month, Kelly urged "we must do everything in our power to eliminate wasteful spending and seek ways to reduce the national debt," adding that as a member of the Budget Committee, he looked forward "to implementing fiscally conservative solutions to government spending."

And Lamborn, Stefanik, and Turner each have sections on their official website issue pages about their commitment to deficit and debt reduction.

In 2017, seven of the eight also voted for Donald Trump's Tax Cuts and Jobs Act, which slashed tax rates for corporations and billionaires while adding about $1.9 trillion to the deficit over ten years.

Stefanik opposed it because it reduced a state and local tax deduction, impacting New Yorkers.

Published with permission of The American Independent Foundation.

How The Warfare State Left Us Undefended Against Pandemics

How The Warfare State Left Us Undefended Against Pandemics

Reprinted with permission from TomDispatch

At this moment of unprecedented crisis, you might think that those not overcome by the economic and mortal consequences of the coronavirus would be asking, "What can we do to help?" A few companies have indeed pivoted to making masks and ventilators for an overwhelmed medical establishment. Unfortunately, when it comes to the top officials of the Pentagon and the CEOs running a large part of the arms industry, examples abound of them asking what they can do to help themselves.

It's important to grasp just how staggeringly well the defense industry has done in these last nearly 19 years since 9/11. Its companies (filled with ex-military and defense officials) have received trillions of dollars in government contracts, which they've largely used to feather their own nests. Data compiled by the New York Times showed that the chief executive officers of the top five military-industrial contractors received nearly $90 million in compensation in 2017. An investigation that same year by the Providence Journal discovered that, from 2005 to the first half of 2017, the top five defense contractors spent more than $114 billion repurchasing their own company stocks and so boosting their value at the expense of new investment.

To put this in perspective in the midst of a pandemic, the co-directors of the Costs of War Project at Brown University recently pointed out that allocations for the Food and Drug Administration, the Centers for Disease Control and Prevention, and the National Institutes of Health for 2020 amounted to less than one percent of what the U.S. government has spent on the wars in Iraq and Afghanistan alone since 9/11. While just about every imaginable government agency and industry has been impacted by the still-spreading coronavirus, the role of the defense industry and the military in responding to it has, in truth, been limited indeed. The highly publicized use of military hospital ships in New York City and Los Angeles, for example, not only had relatively little impact on the crises in those cities but came to serve as a symbol of just how dysfunctional the military response has truly been.


Bailing Out The Military-Industrial Complex In The Covid-19 Moment
Demands to use the Defense Production Act to direct firms to produce equipment needed to combat Covid-19 have sputtered, provoking strong resistance from industries worried first and foremost about their own profits. Even conservative Washington Post columnist Max Boot, a longtime supporter of increased Pentagon spending, has recently recanted, noting how just such budget priorities have weakened the ability of the United States to keep Americans safe from the virus. "It never made any sense, as Trump's 2021 budget had initially proposed, to increase spending on nuclear weapons by $7 billion while cutting Centers for Disease Control and Prevention funding by $1.2 billion," he wrote. "Or to create an unnecessary Space Force out of the U.S. Air Force while eliminating the vitally important directorate of global health by folding it into another office within the National Security Council."

In fact, continuing to prioritize the U.S. military will only further weaken the country's public health system. As a start, simply to call up doctors and nurses in the military reserves, as even Secretary of Defense Mark Esper has pointed out, would hurt the broader civilian response to the pandemic. After all, in their civilian lives many of them now work at domestic hospitals and medical centers deluged by Covid-19 patients.

The present situation, however, hasn't stopped military-industrial complex requests for bailouts. The National Defense Industrial Association, a trade group for the arms industry, typically asked the Pentagon to speed up contracts and awards for $160 billion in unobligated Department of Defense funds to its companies, which will involve pushing money out the door without even the most modest level of due diligence.

Already under fire in the pre-pandemic moment for grotesque safety problems with its commercial jets, Boeing, the Pentagon's second biggest contractor, received $26.3 billion last year. Now, that company has asked for $60 billion in government support. And you undoubtedly won't be surprised to learn that Congress has already provided Boeing with some of that desired money in its recent bailout legislation. According to the Washington Post, $17 billion was carved out in that deal for companies "critical to maintaining national security" (with Boeing in particular in mind). When, however, it became clear that those funds wouldn't arrive as a complete blank check, the company started to have second thoughts. Now, some members of Congress are practically begging it to take the money.

And Boeing was far from alone. Even as the spreading coronavirus was spurring congressional conversations about what would become a $2 trillion relief package, 130 members of the House were already pleading for funds to purchase an additional 98 Lockheed Martin F-35 jet fighters, the most expensive weapons system in history, at the cost of another half-billion dollars, or the price of more than 90,000 ventilators.

Similarly, it should have been absurdly obvious that this wasn't the moment to boost already astronomical spending on nuclear weapons. Yet this year's defense budget request for such weaponry was 20 percent higher than last year's and 50 percent above funding levels when President Trump took office. The agency that builds nuclear weapons already had $8 billion left unspent from past years and the head of the National Nuclear Security Agency, responsible for the development of nuclear warheads, admitted to Representative Susan Davis (D-CA) that the agency was unlikely even to be able to spend all of the new increase.

Boosters of such weapons, however, remain undeterred by the Covid-19 pandemic. If anything, the crisis only seems to have provided a further excuse to accelerate the awarding of an estimated $85 billion to Northrop Grumman to build a new generation of intercontinental ballistic missiles (ICBMs), considered the "broken leg" of America's nuclear triad. As William Hartung, the director of the Arms and Security Project at the Center for International Policy, has pointed out, such ICBMs "are redundant because invulnerable submarine-launched ballistic missiles are sufficient for deterring other countries from attacking the United States. They are dangerous because they operate on hair-trigger alert, with launch decisions needing to be made in some cases within minutes. This increases the risk of an accidental nuclear war."

And as children's book author Dr. Seuss might have added, "But that is not all! Oh, no, that is not all." In fact, defense giant Raytheon is also getting its piece of the pie in the Covid-19 moment for a $20-$30 billion Long Range Standoff Weapon, a similarly redundant nuclear-armed missile. It tells you everything you need to know about funding priorities now that the company is, in fact, getting that money two years ahead of schedule.

In the midst of the spreading pandemic, the U.S. military's Indo-Pacific Command similarly saw an opportunity to use fear-mongering about China, a country officially in its area of responsibility, to gain additional funding. And so it is seeking $20 billion that previously hadn't gained approval even from the secretary of defense in the administration's fiscal year 2021 budget proposal. That money would go to dubious missile defense systems and a similarly dubious "Pacific Deterrence Initiative."


How Not To Deal With Covid-19
Along with those military-industrial bailouts came the fleecing of American taxpayers. While many Americans were anxiously awaiting their $1,200 payments from that congressional aid and relief package, the Department of Defense was expediting contract payments to the arms industry. Shay Assad, a former senior Pentagon official, accurately called it a "taxpayer rip-off" that industries with so many resources, not to speak of the ability to borrow money at incredibly low interest rates, were being so richly and quickly rewarded in tough times. Giving defense giants such funding at this moment was like giving a housing contractor 90 percent of upfront costs for renovations when it was unclear whether you could even afford your next mortgage payment.

Right now, the defense industry is having similar success in persuading the Pentagon that basic accountability should be tossed out the window. Even in normal times, it's a reasonably rare event for the federal government to withhold money from a giant weapons maker unless its performance is truly egregious. Boeing, however, continues to fit that bill perfectly with its endless program to build the KC-46 Pegasus tanker, basically a "flying gas station" meant to refuel other planes in mid-air.

As national security analyst Mark Thompson, my colleague at the Project on Government Oversight (POGO), has pointed out, even after years of development, that tanker has little hope of performing its mission in the near future. The seven cameras that its pilot relies on to guide the KC-46's fuel to other planes have so much glare and so many shadows that the possibility of disastrously scraping the stealth coating off F-22s and F-35s (both manufactured by Lockheed Martin) while refueling remains a constant danger. The Air Force has also become increasingly concerned that the tanker itself leaks fuel. In the pre-pandemic moment, such problems and associated ones led that service to decide to withhold $882 million from Boeing. Now, however, in response to the Covid-19 crisis, those funds are, believe it or not, being released.

Keep all of this behavior (and more) in mind when you hear people suggest that, in this public health emergency, the military should be put in charge. After all, you're talking about the very institution that has regularly mismanaged massive weapons programs like the $1.4 trillion F-35 jet fighter program, already the most expensive weapons system ever (with ongoing problems galore). Even when it comes to health care, the military has proved remarkably inept. For instance, attempts of the Department of Veterans Affairs and the Department of Defense to integrate their health records were, infamously enough, abandoned after four years and $1 billion spent.

Having someone in uniform at the podium is, unfortunately, no guarantee of success. Indeed, a number of veterans have been quick to rebuke the idea of forefronting the military at this time. "Don't put the military in charge of anything that doesn't involve blowing stuff up, preventing stuff from being blown up, or showing up at a place as a message to others that we'll be there to blow stuff up with you if need be," one wrote.

"Here's a video from Camp Pendleton of unmasked Marines queued up for haircuts during the pandemic," tweeted another. "So how about 'no'?" That video of troops without masks or practicing social distancing even shocked Secretary of Defense Esper, who called for a military haircut halt, only to be contradicted by the chairman of the Joint Chiefs of Staff, desperate to maintain regulation cuts in the pandemic moment. That inspired a mocking rebuke of "haircut heroes" on Twitter.

Unfortunately, as Covid-19 spread on the aircraft carrier the USS Theodore Roosevelt, that ship became emblematic of how ill-prepared the current Pentagon leadership proved to be in combatting the virus. Despite at least 100 cases being reported on board -- 955 crewmembers would, in the end, test positive for the disease and Chief Petty Officer Charles Robert Thacker Jr. would die of it -- senior Navy leaders were slow to respond. Instead, they kept those sailors at close quarters and in an untenable situation of increasing risk. When an emailed letter expressing the concerns of the ship's commander, Captain Brett Crozier, was leaked to the press he was quickly removed from command. But while his bosses may not have appreciated his efforts for his crew, his sailors did. He left the ship to a hero's farewell.

All of this is not to say that some parts of the U.S. military haven't tried to step up as Covid-19 spreads. The Pentagon has, for instance, awarded contracts to build "alternate care" facilities to help relieve pressure on hospitals. The Uniformed Services University of the Health Sciences is allowing its doctors and nurses to join the military early. Several months into this crisis, the Pentagon has finally used the Defense Production Act to launch a process to produce $133 million worth of crucial N95 respirator masks and $415 million worth of N95 critical-care decontamination units. But these are modest acts in the midst of a pandemic and at a moment when bailouts, fraud, and delays suggest that the military-industrial complex hasn't proved capable of delivering effectively, even for its own troops.

Meanwhile, the Beltway bandits that make up that complex have spotted a remarkable opportunity to secure many of their hopes and dreams. Their success in putting their desires and their profits ahead of the true national security of Americans was already clear enough in the staggering pre-pandemic $1.2 trillion national security budget. (Meanwhile, of course, key federal medical structures were underfunded or disbanded in the Trump administration years, undermining the actual security of the country.) That kind of disproportionate spending helps explain why the richest nation on the planet has proven so incapable of providing even the necessary personal protective equipment for frontline healthcare workers, no less the testing needed to make this country safer.
The defense industry has asked for, and received, a lot in this time of soaring cases of disease and death. While there is undoubtedly a role for the giant weapons makers and for the Pentagon to play in this crisis, they have shown themselves to be anything but effective lead institutions in the response to this moment. It's time for the military-industrial complex to truly pay back an American public that has been beyond generous to it.

Isn't it finally time as well to reduce the "defense" budget and put more of our resources into the real national security crisis at hand?


Mandy Smithberger, a TomDispatch regular, is the director of the Center for Defense Information at the Project On Government Oversight (POGO).

Copyright 2020 Mandy Smithberger

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