Tuesday, December 06, 2005

Three-Card Monte

White House Tries to Trim Military Cost
Published: December 6, 2005

An excellent article which does not even scratch the surface of the Problem. Logistic replacement of equipment lost or worn out in Iraq and Afghanistan remains a simple Productivity formula, employing at most industrial engineers and Plant workers. The Profit/per Dollar spent in Production seems ridiculously low--sometimes no more than normal Private Sector production activity. An excessive Lobbyist effort could not be afforded, even if Anyone involved thought to get excited.

Weapons Systems Development, on the other hand, contains a totally different sentiment. The Profits reside not in Capital profits, but in the unscalable arena of human expertise. A probable excess of 50% of all Funds flow to human labor at rates much higher than normal Production pay. Those involved, at both levels of Corporate Executive and Specialized Labor, find the extended Pay to be vastly advantageous, to the point that it is reasonable to assume some 20% of all Funds directed to Weapons Development winds up as Lobbyist budgets.

The Pentagon has about $1.3 trillion in weapon systems in some stage of development, with over $800 billion of those costs yet to be paid.

Spending for the current year, not including the supplemental appropriations to cover the costs of Iraq and Afghanistan, has reached $444 billion, a growth of 41 percent since 2001, according to the Pentagon.

It should seem outlandish, but it is not, for this Author to suggest approximately One-Quarter of the increase in Defense spending since 2001 goes to Lobbyist expenditures to ensure these Weapons Systems are not discontinued. It reminds of the famous Song:

Tell Me No Lies, and Keep Your Hands to Yourself lgl

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