Why Dishing Out Cash to the Pentagon Is No Solution for the Unemployment Crisis

By Frida Berrigan, Tomdispatch.com. Posted March 13, 2009.

If such war spending had been an effective stimulus for the economy, we would be roaring along on 12 cylinders today. But increasingly this kind of spending mainly stimulates corporate shareholders, stock prices, and (of course) war itself.

No matter, the staggering new defense budget ensures that, for the defense industry, some version of good times will continue to roll, even if the economic impact of these huge military investments proves negligible and the need in other areas is staggering.

The 2010 Defense Budget

President Obama is reportedly intent on digging deep into the Pentagon budget. He has given his Office of Management and Budget until April to complete an "exhaustive line-by-line" review of the detailed budget request before it is released. In speeches, he has focused on wasteful and unnecessary defense spending.

Just days ago, Obama insisted that "the days of giving defense contractors a blank check are over." To underline that assertion, he cited a 2008 Government Accountability Office study that found 95 military projects over budget by a total of $295 billion. He pledged to end such egregious practices, and the no-bid contracts that often go with them. That applause line plays well at a time when belts are tightening uncomfortably and boot straps remain elusive, but it misses a reality, no less potentially important in the Obama era than in the preceding one: for (at least) the last eight years, defense contractors haven't needed a "blank check" because they already have the combination to the safe, the PIN number to the account, and a controlling interest on the board of the bank.

Given the promised size of the next Pentagon budget, no matter what weapons programs are cut or companies and contracts disciplined, the "bank board" will remain the same because the overall amount available to it shows no signs of changing. In fact, basic funding levels (not including money still being set aside for the wars in Afghanistan and Iraq) are remarkably in line with the most recent Bush administration budget, right down to prospective further increases. The just released overall figure for the 2010 Pentagon budget is actually $533.7 billion; that is, $20.4 billion higher than Bush's last base budget.

President Obama does not like the term "Global War on Terror" (GWOT), dispensing with the Bush administration's moniker of choice to describe the most costly array of military operations since World War II. But Obama's Pentagon will continue to spend a GWOT-sized chunk of our national treasure, even as troops trickle home from Iraq, and the surge relocates to Afghanistan's inhospitable steppes. The preliminary figure for war-fighting in 2010 is $130 billion, which represents a modest decrease from the $144 billion that is expected to go to military operations in 2009. Add that to the base Pentagon budget and you get a subtotal of $664 billion for 2010 military expenditures.

If the estimated costs of military spending lodged in other parts of the federal budget (like funding for nuclear weapons which is considered the bailiwick of the Department of Energy), as well as miscellaneous non-Defense Department defense costs -- about $23 billion last time around -- are also included, then President Obama's first military budget should come in at around $670 billion.

After the preliminary budget figures were released, Secretary of Defense Robert Gates told reporters, "In our country's current economic circumstances, I believe that represents a strong commitment to our security." Almost $700 billion is a strong commitment alright. Unfortunately, as a stimulus commitment -- and a largely unquestioned one at that -- it is certain to prove a drag on our economic recovery, despite the claims of the defense industry and their ever-present publicists and lobbyists.

Lifting America by the (Combat) Bootstraps?

And are we hearing those claims these days! The Aerospace Industries Association (AIA), representing more than 100 leading defense and aerospace corporations, has been trumpeting their contributions to the economy in a print ad campaign and on their website under the catch-phrase: "Aerospace and Defense: The Strength to Lift America."

See more stories tagged with: pentagon, jobs, stimulus package

Frida Berrigan is a Senior Program Associate at the New America Foundation's Arms and Security Initiative (ASI). She is a columnist for Foreign Policy in Focus and a contributing editor at In These Times. The recently released Weapons at War 2008: Beyond the Bush Legacy,

co-authored by Berrigan and William D. Hartung, is an examination of U.S.

weapons sales and military aid to developing nations, conflict zones,

and nations where human rights are not safeguarded. 

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