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Why Is the Most Wasteful Government Agency Not Part of the Deficit Discussion?

Any serious battle plan to reduce the deficit must take on the Pentagon.

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How did Congress’ respond to DOD’s delinquency? It gave it absolution and allowed it to opt out of its legal requirement. But as a sop to outraged public opinion Congress required DOD to set a date when it would have its book sufficiently in order to be audited. Which the Pentagon dutiful did, and missed every one of the target dates. The latest is 2017 and DOD has already announced it will be unable to meet that deadline.

Adding insult to injury, last September, the GAO found that the new computer systems intended to improve the Pentagon’s financial oversight are themselves nearly 100 percent or $7 billion over budget and as much as 12 years behind schedule!

The Pentagon is not just incompetent. It is corrupt. In November 2009 the Pentagon’s Defense Contract Audit Agency (DCAA), the federal watchdog responsible for auditing oversight of military contractors, raised the question of criminal wrongdoing when it found that the audits that did occur were riddled with serious breaches of auditor independence. One Pentagon auditor admitted he did not perform detailed tests because, “The contractor would not appreciate it.”

Why would the Pentagon allow its contractors to get away with fraud? To answer that question we need to understand the incestuous relationship between the Pentagon and its contractors that has been going on for years, and is getting worse. From 2004 to 2008, 80 percent of retiring three and four star officers went to work as consultants or defense industry executives . Thirty-four out of 39 three- and four-star generals and admirals who retired in 2007 are now working in defense industry roles — nearly 90 percent.

retired general working for defense
Generals are recruited for private sector jobs well before they retire. Once employed by the military contractor the general maintains a Pentagon advisory role.

“In almost any other realm it would seem a clear conflict of interest. But this is the Pentagon where…such apparent conflicts are a routine fact of life”, an in-depth investigation by the Boston Globe concluded.

U.S. military spending now exceeds the spending of all other countries combined. Knowledge military experts argue that we can cut at least $1 trillion from the Pentagon budget without changing its currently expressed mission. But a growing number believe that the mission itself is suspect. Economic competitors like India and China certainly approve of our willingness to undermine our economic competitiveness by diverting trillions of dollars into war and weapons production. Some argue that all this spending has made us more secure but all the evidence points in the opposite direction. Certainly our $2 trillion and counting military adventures in the Middle East and Afghanistan and Pakistan have won us few friends and multiplied our enemies.

Defense experts Gordon Adams and Matthew Leatherman, writing in the Washington Post offer another argument against unrestrained military spending.

“Countries feel threatened when rivals ramp up their defenses; this was true in the Cold War, and now it may happen with China. It’s how arms races are born. We spend more, inspiring competitors to do the same — thus inflating defense budgets without making anyone safer. For example, Gates observed in May that no other country has a single ship comparable to our 11 aircraft carriers. Based on the perceived threat that this fleet poses, the Chinese are pursuing an anti-ship ballistic missile program. U.S. military officials have decried this “carrier-killer’‘ effort, and in response we are diversifying our capabilities to strike China, including a new long-range bomber program, and modernizing our carrier fleet at a cost of about $10 billion per ship.”

 
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