| Chapter Seven of Pax Americana: The Military Industrial Complex and the War On Terror by Danny Quintana |
| The Military Industrial Complex and September 11th “The lust for money is the root of all evil” Jesus Christ |
Bin Laden and his small handful of killers successfully attacked America on the watch of George W. Bush. The fact of life is, the Republican
Party, also known as the Christian Party of God, failed to protect our great country. On September 11, 2001 the modern political world
changed forever. This cowardly and horrific attack on innocent people immediately resulted in a call to spend more money on defense and
find the criminals who attacked our great empire. Now in the calm distance of time, we realize that the second Bush administration was
proposing a massive military buildup prior to the terrorist attack. China was provoked without success.1 An incident involving an American
plane being shot down was created to convince the public that the Red Menace was a threat to our republic. A missile defense system costing
billions needed justification. 2
But the American public was more interested in a speculative stock market, sports and life than a new arms race without an enemy to justify
these massive expenditures. Then came that attack on America while Bush and Cheney were asleep on guard duty. Without just cause,
innocent people were murdered in the most vicious attack on the United States in our short history. Some misguided young men took over
some planes fully loaded with jet fuel and used them as weapons against men, women and children on the ground.
Party, also known as the Christian Party of God, failed to protect our great country. On September 11, 2001 the modern political world
changed forever. This cowardly and horrific attack on innocent people immediately resulted in a call to spend more money on defense and
find the criminals who attacked our great empire. Now in the calm distance of time, we realize that the second Bush administration was
proposing a massive military buildup prior to the terrorist attack. China was provoked without success.1 An incident involving an American
plane being shot down was created to convince the public that the Red Menace was a threat to our republic. A missile defense system costing
billions needed justification. 2
But the American public was more interested in a speculative stock market, sports and life than a new arms race without an enemy to justify
these massive expenditures. Then came that attack on America while Bush and Cheney were asleep on guard duty. Without just cause,
innocent people were murdered in the most vicious attack on the United States in our short history. Some misguided young men took over
some planes fully loaded with jet fuel and used them as weapons against men, women and children on the ground.
At some point individuals need to take responsibility for their own actions and not use religion or politics to justify killing other beings.
September 11th did not happen because of our failures in foreign policy, our support of Israel or gays or young women having abortions.
What really happened is 19 misguided young men believed their ideas so strongly they justified flying planes loaded with jet fuel at human
targets. The killings were over ideas. But regardless of what words we might use, they are still only ideas. In the free market place of thought,
ideas will come and go throughout history. The United States, Islam, Christianity and Judaism are ideas. We can try to justify killing any way
we want. We are all going to die. In the end God takes us all out.
September 11th did not happen because of our failures in foreign policy, our support of Israel or gays or young women having abortions.
What really happened is 19 misguided young men believed their ideas so strongly they justified flying planes loaded with jet fuel at human
targets. The killings were over ideas. But regardless of what words we might use, they are still only ideas. In the free market place of thought,
ideas will come and go throughout history. The United States, Islam, Christianity and Judaism are ideas. We can try to justify killing any way
we want. We are all going to die. In the end God takes us all out.
On the extreme left we had Noam Chomsky blaming the attack on our failures in
foreign policy. And on the extreme right we had Jerry Falwell blaming the attacks on
America on gays and legal abortions. The world according to Falwell was:
foreign policy. And on the extreme right we had Jerry Falwell blaming the attacks on
America on gays and legal abortions. The world according to Falwell was:
Prior to September 11, 2001, the United States maintained the most the world’s most powerful military. Despite this omnipotent military, Al
Qaeda succeeded in killing innocent people. Like our own domestic criminal terrorists who once bombed African American churches in the
South and like Timothy McVeigh who bombed the Oklahoma Federal Building, the Al Qaeda members do not understand that America
is not a place or a people but an idea. America is the concept of freedom of thought and liberty of expression. In the free market place of
thought, this idea can only be defeated by a better idea. This is why people from all over our small planet come to the United States. They
want freedom and liberty. The idea of America can only be destroyed if you kill everyone on earth who believes in freedom of thought and
liberty of expression. Freedom and liberty will not be defeated as these ideas are the pinnacle of human history and will prevail over evil and
hatred.
In security you only have to be right 100% of the time. In criminal terrorism you have to be right once. No amount of money spent on defense
contractors/campaign contributors will keep our great country completely secure from a small handful of criminal terrorists. Even turning our
great nation into a police state will not protect us.
The military industrial complex is having a field day with the public fear created by September 11th. The value of the publicly traded stocks of
the major defense contractors surged up after the stock market settled following this criminal terrorist attack. 9 The United States now spends
more money on defense then the next 22 countries combined. But the real defense budget is much larger then the reported $480 billion for
standard operations. The government figures do not reflect the costs of the Department of Energy. One of the primary purposes of the DoE is
developing and maintaining our vast nuclear weapons complex. The proposed budget of DoE for 2008 is approximately $24 billion dollars10.
The Veterans Administration’s primary function is to care for the veterans who served our great country. Ruling the world comes with a price
and that price is high both in human and financial costs. In addition to paying for the health care costs related to service, the VA has
responsibility for pensions and other services. Their budget for 2002 is $86.7 billion dollars.11 Not included are the health and human
services related costs from the effects of prior wars. This also does not include the supplemental appropriations which are hidden in the
overall budget. The real defense budget is closer to $600 billion dollars.
Qaeda succeeded in killing innocent people. Like our own domestic criminal terrorists who once bombed African American churches in the
South and like Timothy McVeigh who bombed the Oklahoma Federal Building, the Al Qaeda members do not understand that America
is not a place or a people but an idea. America is the concept of freedom of thought and liberty of expression. In the free market place of
thought, this idea can only be defeated by a better idea. This is why people from all over our small planet come to the United States. They
want freedom and liberty. The idea of America can only be destroyed if you kill everyone on earth who believes in freedom of thought and
liberty of expression. Freedom and liberty will not be defeated as these ideas are the pinnacle of human history and will prevail over evil and
hatred.
In security you only have to be right 100% of the time. In criminal terrorism you have to be right once. No amount of money spent on defense
contractors/campaign contributors will keep our great country completely secure from a small handful of criminal terrorists. Even turning our
great nation into a police state will not protect us.
The military industrial complex is having a field day with the public fear created by September 11th. The value of the publicly traded stocks of
the major defense contractors surged up after the stock market settled following this criminal terrorist attack. 9 The United States now spends
more money on defense then the next 22 countries combined. But the real defense budget is much larger then the reported $480 billion for
standard operations. The government figures do not reflect the costs of the Department of Energy. One of the primary purposes of the DoE is
developing and maintaining our vast nuclear weapons complex. The proposed budget of DoE for 2008 is approximately $24 billion dollars10.
The Veterans Administration’s primary function is to care for the veterans who served our great country. Ruling the world comes with a price
and that price is high both in human and financial costs. In addition to paying for the health care costs related to service, the VA has
responsibility for pensions and other services. Their budget for 2002 is $86.7 billion dollars.11 Not included are the health and human
services related costs from the effects of prior wars. This also does not include the supplemental appropriations which are hidden in the
overall budget. The real defense budget is closer to $600 billion dollars.
Last of the Big Time Spenders:
U.S. Military Budget Still the World's Largest, and Growing
Selected Countries Military Budget
United States $396---$600 Billion proposed for 2008)
Italy $15.5
South Korea $11.8
Iran $9.1
Israel $9.0
Taiwan $8.2
Canada $7.7
Spain $6.9
Australia $6.6
Netherlands $5.6
Turkey $5.1
Singapore $4.3
Sweden $4.2
United Arab Emirates* $3.9
Poland $3.7
Greece $3.3
Argentina* $3.1
Pakistan $2.6
Norway $2.8
Kuwait $2.6
Denmark $2.4
Belgium $2.2
Colombia $2.1
Egypt $2.1
Vietnam $1.8
Iraq $1.4
North Korea $1.3
Portugal $1.3
Libya $1.2
Czech Republic $1.1
Philippines $1.1
Luxembourg $0.9
Hungary $0.8
Syria $0.8
Cuba $0.7
Sudan $0.6
Yugoslavia $0.5
U.S. Military Budget Still the World's Largest, and Growing
Selected Countries Military Budget
United States $396---$600 Billion proposed for 2008)
Italy $15.5
South Korea $11.8
Iran $9.1
Israel $9.0
Taiwan $8.2
Canada $7.7
Spain $6.9
Australia $6.6
Netherlands $5.6
Turkey $5.1
Singapore $4.3
Sweden $4.2
United Arab Emirates* $3.9
Poland $3.7
Greece $3.3
Argentina* $3.1
Pakistan $2.6
Norway $2.8
Kuwait $2.6
Denmark $2.4
Belgium $2.2
Colombia $2.1
Egypt $2.1
Vietnam $1.8
Iraq $1.4
North Korea $1.3
Portugal $1.3
Libya $1.2
Czech Republic $1.1
Philippines $1.1
Luxembourg $0.9
Hungary $0.8
Syria $0.8
Cuba $0.7
Sudan $0.6
Yugoslavia $0.5
Real security can only come from the rule and respect of law. The criminal-terrorists who basically caught us with a lucky sucker punch are
not anywhere near as powerful as they have been portrayed by the mass media. They are just a large criminal terrorist organization like the
international drug dealers who we have been chasing for the last 30 years. Quite unlike the drug dealers who just want to make a buck, (kind
of like the tobacco executives who kill hundreds of thousands annually), the criminal terrorists will be much easier to track and catch. Although
they are a large criminal organization, their numbers are not substantial.
The criminal terrorists are a very small group of ideologues that are intent killing people to spread their perverted version of Islam. The
overwhelming majority of the one billion members of Islam, one of the great world religions, do not want anything to do with terrorism. If we
attack and kill innocent people just so we can seek vengeance, then these criminal terrorists will have something they desperately need, new
members to attack us here in our homes, schools, shopping malls, bus stations, airlines and numerous other places of our free society.
Today, the defense budget is over $600 billion dollars and American troops have not been able to bring security to the people of Iraq.
We successfully dislodged Al Queda from Afghanistan and have started a crusade on Iraq. Our troops are still bogged down in Iraq. In the
process of war we have captured thousands of combatants. We have labeled these individuals as “terrorists” in our War on Terrorism, which
has replaced the War on Communism, which has replaced the War on Fascism. Excess defense spending continues and now has a
justification. This accident in security where the Bush Administration was asleep at guard duty and was negligent has bred various conspiracy
theories.
----------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. U.S. Plane and Chinese Jet Collide (April 2): Navy surveillance craft on routine mission near China coast hit by fighter craft that was closely
trailing it. Damaged U.S. plane, with 24 crew members and secret equipment, makes emergency landing at military base on Chinese island of
Hainan. Chinese pilot, Wang Wei, is missing and presumed dead. (April 3): Chinese government blames United States for midair collision and
hints that release of crew depends on apology from Washington. (April 10): United States issues formal statement of regret to Beijing for
collision with Chinese fighter. (April 12): China releases all 24 U.S. crew members after 11 days in custody. Crew later reports having
destroyed much of the plane's secret equipment. www.infoplease.com/ipa/A0878644.html
2. In a speech at National Defense University on May 1st 2001, President George W. Bush restated his administration's goal of developing a
system to protect the US, and perhaps its allies, against ballistic missiles. He alluded to a wide range of possible approaches to this task,
though no specific systems have yet been chosen. This site is a guide to potential technologies that might be used in a national defense
against ICBMs. Note that while ICBMs are the only land-based ballistic missile threats to US territory, American allies might be threatened by
shorter range theater missiles and thus require theater missile defenses for protection. Missile defenses may be broadly grouped according
to the point in the missile's flight that is targeted: • Boost phase begins at launch and lasts up to five minutes for a primitive liquid-fuel ICBM or
as little as eighty seconds for an advanced solid-fuel ICBM.. •Midcourse phase is when the warhead travels freely through space outside the
atmosphere. For an ICBM, this stage lasts about twenty minutes. Terminal phase is when the warhead reenters the
atmosphere and falls to or near the ground. www.fas.org/ssp/bmd/guide/index.html
3. Needless to say, Falwell’s absurd comments caused quite a stir. It is amazing how we can have such insensitive and hateful comments
despite the immense suffering of the victims from this tragedy. See generally, Truthorfiction.com at Jerry Falwell, Pat Robertson, views on
September 11-Truth!
4. The fund-raising totals reported by the Bush campaign show that he raised more than $191 million, including federal funds, in the 2000
election cycle. There are several sites on the internet which detail the total spending on campaigns. Both parties receive funding from
corporate America and labor. One of the best sites if Mother Jones Magazine at
www.motherjonescom/web_exclusives/special_reports/mojo_400/index.html
5. The best source for information on defense spending is the Center for Defense Information. The site is comprehensive and objective with
numerous links atCenter for Defense Information - Terrorism, Military & Security Policy Research Organization www.cdi.org/
6. To get the public to support new military hardware, whether or not the Pentagon wants the item being produced or proposed by defense
industrialists, the project is spread out over several Congressional districts. According to Ken Silverstein and Jeff Moag in their article in
Mother Jones Magazine on the B-2 bomber “Northrop Grumman, the prime contractor for the B-2, doled out work to various subcontractors in
46 states and, more importantly, in 383 of 435 congressional districts. Lockheed plans to build the parts for its F-22 in 48 states and Puerto
Rico.” Throughout the nation, there are sea ports for our navy, air force bases for our air-force and military bases for our army. Every state
benefits so the Iron Triangle of the Military, Industry and Congress continues. Both the Center for Defense Information and Mother Jones
Magazine and numerous other sites are available on line on the tangled web which has created this vast defense complex. See “The
Pentagon's 300-Billion-Dollar Bomb “ by Ken Silverstein and Jeff Moag at http://www.motherjones.com/mother_jones/JF00/stealth.html
The number of military bases according to DoD, there are 5,612 bases of all sizes in the United States(as of Sept. 30, 2001)
www.defenselink.mil/news/Jun2002/basestructure2002
7. Remarks by the President to the Service Personnel Eglin Air Force Base, Fort Walton Beach, Florida February 4, 2002 available on line:
Transcript: Bush Remarks at Eglin Air Force Base, February 4 at:
www.usembassy-israel.org.il/publish/peace/archives/2002/february/020506.html
8. As delivered by Secretary of Defense Donald Rumsfeld, General Richard Myers, Chairman of the Joint Chiefs of Staff, and Dov Zakheim,
Comptroller of the Defense Department, before the House Armed Services Committee, February 6, 2002
9. Numerous sources available on the internet confirm the increase in stock prices for the top defense contractors after the stock market
initial collapse following this vicious attack. The best sources are the individual companies themselves and looking at their historic stock price
on Yahoo Finance. As Robert Friedman, a financial defense analyst observed in the March 28, 2002 Business Week: Defense Stocks: Hold
Your Fire MARCH 28, 2002 Business Week. Despite reports that the Pentagon may allow weapons makers to earn higher profits, S&P is still
cautious on the group. Defense contractors soared Wednesday after Morgan Stanley predicted that the Pentagon will permit them to
generate operating profit margins greater than the current 15% ceiling.
The Pentagon has been working to improve the financial health of the U.S. defense industry, especially after September 11. One of its latest
reform proposals would allow defense contractors to keep a portion of savings from plant closings and other cost reduction programs. The
government has responded by boosting payments to defense contractors and eliminating the regulatory requirement that weapons makers
defray the cost of developing experimental weapons. However, none of the major contractors are posting defense-related margins anywhere
near the current limit. Moreover, always-shifting. Pentagon strategies and Congressional priorities materially raises the probability of lower-
than-expected sustainable defense spending hikes. Most defense contractors are trading at or above their sustainable cash earnings growth
power.
Standard & Poor's is keeping its 5 STARS (buy) rating on Boeing (BA ), and reiterates its 3 STARS (hold) rating on General Dynamics (GD ),
Northrop Grumman (NOC ) and Raytheon (RTN ). S&P is keeping its sell rating on Lockheed Martin (LMT). Robert Friedman is an aerospace
&
defense analyst for Standard & Poor's--See also: Yahoo Finance: Like much of the economy, the aerospace and defense industry was
struggling to maintain profitability even before September 11. Needless to say, the terrorist attacks have had a profound affect on the
aerospace and defense industry, accelerating some trends, while reversing others. The ramifications will differ for each of the three basic
industry segments: defense, commercial aircraft, and space. The defense market accounted for about 50% of the aerospace and defense
industry's sales in 2000, but that figure is expected to grow as a result of the war on terrorism. For example, President Bush's newest
proposal for the US Department of Defense's budget calls for a spending increase of about 15%. The world's overall defense spending will
also increase. Obviously, this trend will bode well for the large companies that dominate the market: Lockheed Martin, Boeing, Raytheon, BAE
Systems, Northrop Grumman, General Dynamics, EADS, Thales, United Technologies, and TRW. The large got larger throughout the 1990s
in the defense market and that trend continued into the new century. In all, defense companies spent $30 billion on mergers and acquisitions
in 2001, with Northrop Grumman’s purchase of both Litton Industries and Newport News Shipbuilding being the most prominent of the deals. In
2001 Lockheed beat out Boeing for the $200 billion contract to build the Joint Strike Fighter, the largest defense contract ever. The contract,
which is spread out over almost 30 years, may well mark the last one for a manned fighter as the success of the unmanned drones (as
evidenced in Afghanistan with the use of General Atomics' Predator) is expected to continue, supplanting the need for the more expensive
manned jets and making it unnecessary to risk pilots' lives in combat. Web Site available at: http://biz.yahoo.com/ic/2.html
10. The Department of Energy’s budget is available on line at:
www.whitehouse.gov/omb/budget/fy2003/bud14.html
www.energy.gov/about/budget.htm
11. The Department of Veterans Affairs’ budget is available on line at:
www.whitehouse.gov/omb/budget/fy2003/bud23.html
12. February 5, 2002 New York Times at: Bush's Aggressive Accounting
www.nytimes.com/2002/02/05/opinion/05KRUG.html
not anywhere near as powerful as they have been portrayed by the mass media. They are just a large criminal terrorist organization like the
international drug dealers who we have been chasing for the last 30 years. Quite unlike the drug dealers who just want to make a buck, (kind
of like the tobacco executives who kill hundreds of thousands annually), the criminal terrorists will be much easier to track and catch. Although
they are a large criminal organization, their numbers are not substantial.
The criminal terrorists are a very small group of ideologues that are intent killing people to spread their perverted version of Islam. The
overwhelming majority of the one billion members of Islam, one of the great world religions, do not want anything to do with terrorism. If we
attack and kill innocent people just so we can seek vengeance, then these criminal terrorists will have something they desperately need, new
members to attack us here in our homes, schools, shopping malls, bus stations, airlines and numerous other places of our free society.
Today, the defense budget is over $600 billion dollars and American troops have not been able to bring security to the people of Iraq.
We successfully dislodged Al Queda from Afghanistan and have started a crusade on Iraq. Our troops are still bogged down in Iraq. In the
process of war we have captured thousands of combatants. We have labeled these individuals as “terrorists” in our War on Terrorism, which
has replaced the War on Communism, which has replaced the War on Fascism. Excess defense spending continues and now has a
justification. This accident in security where the Bush Administration was asleep at guard duty and was negligent has bred various conspiracy
theories.
----------------------------------------------------------------------------------------------------------------------------------------
Notes:
1. U.S. Plane and Chinese Jet Collide (April 2): Navy surveillance craft on routine mission near China coast hit by fighter craft that was closely
trailing it. Damaged U.S. plane, with 24 crew members and secret equipment, makes emergency landing at military base on Chinese island of
Hainan. Chinese pilot, Wang Wei, is missing and presumed dead. (April 3): Chinese government blames United States for midair collision and
hints that release of crew depends on apology from Washington. (April 10): United States issues formal statement of regret to Beijing for
collision with Chinese fighter. (April 12): China releases all 24 U.S. crew members after 11 days in custody. Crew later reports having
destroyed much of the plane's secret equipment. www.infoplease.com/ipa/A0878644.html
2. In a speech at National Defense University on May 1st 2001, President George W. Bush restated his administration's goal of developing a
system to protect the US, and perhaps its allies, against ballistic missiles. He alluded to a wide range of possible approaches to this task,
though no specific systems have yet been chosen. This site is a guide to potential technologies that might be used in a national defense
against ICBMs. Note that while ICBMs are the only land-based ballistic missile threats to US territory, American allies might be threatened by
shorter range theater missiles and thus require theater missile defenses for protection. Missile defenses may be broadly grouped according
to the point in the missile's flight that is targeted: • Boost phase begins at launch and lasts up to five minutes for a primitive liquid-fuel ICBM or
as little as eighty seconds for an advanced solid-fuel ICBM.. •Midcourse phase is when the warhead travels freely through space outside the
atmosphere. For an ICBM, this stage lasts about twenty minutes. Terminal phase is when the warhead reenters the
atmosphere and falls to or near the ground. www.fas.org/ssp/bmd/guide/index.html
3. Needless to say, Falwell’s absurd comments caused quite a stir. It is amazing how we can have such insensitive and hateful comments
despite the immense suffering of the victims from this tragedy. See generally, Truthorfiction.com at Jerry Falwell, Pat Robertson, views on
September 11-Truth!
4. The fund-raising totals reported by the Bush campaign show that he raised more than $191 million, including federal funds, in the 2000
election cycle. There are several sites on the internet which detail the total spending on campaigns. Both parties receive funding from
corporate America and labor. One of the best sites if Mother Jones Magazine at
www.motherjonescom/web_exclusives/special_reports/mojo_400/index.html
5. The best source for information on defense spending is the Center for Defense Information. The site is comprehensive and objective with
numerous links atCenter for Defense Information - Terrorism, Military & Security Policy Research Organization www.cdi.org/
6. To get the public to support new military hardware, whether or not the Pentagon wants the item being produced or proposed by defense
industrialists, the project is spread out over several Congressional districts. According to Ken Silverstein and Jeff Moag in their article in
Mother Jones Magazine on the B-2 bomber “Northrop Grumman, the prime contractor for the B-2, doled out work to various subcontractors in
46 states and, more importantly, in 383 of 435 congressional districts. Lockheed plans to build the parts for its F-22 in 48 states and Puerto
Rico.” Throughout the nation, there are sea ports for our navy, air force bases for our air-force and military bases for our army. Every state
benefits so the Iron Triangle of the Military, Industry and Congress continues. Both the Center for Defense Information and Mother Jones
Magazine and numerous other sites are available on line on the tangled web which has created this vast defense complex. See “The
Pentagon's 300-Billion-Dollar Bomb “ by Ken Silverstein and Jeff Moag at http://www.motherjones.com/mother_jones/JF00/stealth.html
The number of military bases according to DoD, there are 5,612 bases of all sizes in the United States(as of Sept. 30, 2001)
www.defenselink.mil/news/Jun2002/basestructure2002
7. Remarks by the President to the Service Personnel Eglin Air Force Base, Fort Walton Beach, Florida February 4, 2002 available on line:
Transcript: Bush Remarks at Eglin Air Force Base, February 4 at:
www.usembassy-israel.org.il/publish/peace/archives/2002/february/020506.html
8. As delivered by Secretary of Defense Donald Rumsfeld, General Richard Myers, Chairman of the Joint Chiefs of Staff, and Dov Zakheim,
Comptroller of the Defense Department, before the House Armed Services Committee, February 6, 2002
9. Numerous sources available on the internet confirm the increase in stock prices for the top defense contractors after the stock market
initial collapse following this vicious attack. The best sources are the individual companies themselves and looking at their historic stock price
on Yahoo Finance. As Robert Friedman, a financial defense analyst observed in the March 28, 2002 Business Week: Defense Stocks: Hold
Your Fire MARCH 28, 2002 Business Week. Despite reports that the Pentagon may allow weapons makers to earn higher profits, S&P is still
cautious on the group. Defense contractors soared Wednesday after Morgan Stanley predicted that the Pentagon will permit them to
generate operating profit margins greater than the current 15% ceiling.
The Pentagon has been working to improve the financial health of the U.S. defense industry, especially after September 11. One of its latest
reform proposals would allow defense contractors to keep a portion of savings from plant closings and other cost reduction programs. The
government has responded by boosting payments to defense contractors and eliminating the regulatory requirement that weapons makers
defray the cost of developing experimental weapons. However, none of the major contractors are posting defense-related margins anywhere
near the current limit. Moreover, always-shifting. Pentagon strategies and Congressional priorities materially raises the probability of lower-
than-expected sustainable defense spending hikes. Most defense contractors are trading at or above their sustainable cash earnings growth
power.
Standard & Poor's is keeping its 5 STARS (buy) rating on Boeing (BA ), and reiterates its 3 STARS (hold) rating on General Dynamics (GD ),
Northrop Grumman (NOC ) and Raytheon (RTN ). S&P is keeping its sell rating on Lockheed Martin (LMT). Robert Friedman is an aerospace
&
defense analyst for Standard & Poor's--See also: Yahoo Finance: Like much of the economy, the aerospace and defense industry was
struggling to maintain profitability even before September 11. Needless to say, the terrorist attacks have had a profound affect on the
aerospace and defense industry, accelerating some trends, while reversing others. The ramifications will differ for each of the three basic
industry segments: defense, commercial aircraft, and space. The defense market accounted for about 50% of the aerospace and defense
industry's sales in 2000, but that figure is expected to grow as a result of the war on terrorism. For example, President Bush's newest
proposal for the US Department of Defense's budget calls for a spending increase of about 15%. The world's overall defense spending will
also increase. Obviously, this trend will bode well for the large companies that dominate the market: Lockheed Martin, Boeing, Raytheon, BAE
Systems, Northrop Grumman, General Dynamics, EADS, Thales, United Technologies, and TRW. The large got larger throughout the 1990s
in the defense market and that trend continued into the new century. In all, defense companies spent $30 billion on mergers and acquisitions
in 2001, with Northrop Grumman’s purchase of both Litton Industries and Newport News Shipbuilding being the most prominent of the deals. In
2001 Lockheed beat out Boeing for the $200 billion contract to build the Joint Strike Fighter, the largest defense contract ever. The contract,
which is spread out over almost 30 years, may well mark the last one for a manned fighter as the success of the unmanned drones (as
evidenced in Afghanistan with the use of General Atomics' Predator) is expected to continue, supplanting the need for the more expensive
manned jets and making it unnecessary to risk pilots' lives in combat. Web Site available at: http://biz.yahoo.com/ic/2.html
10. The Department of Energy’s budget is available on line at:
www.whitehouse.gov/omb/budget/fy2003/bud14.html
www.energy.gov/about/budget.htm
11. The Department of Veterans Affairs’ budget is available on line at:
www.whitehouse.gov/omb/budget/fy2003/bud23.html
12. February 5, 2002 New York Times at: Bush's Aggressive Accounting
www.nytimes.com/2002/02/05/opinion/05KRUG.html
“The ACLU has got to take a lot of blame for this. And I know I'll hear
from them for this, but throwing God...successfull with the help of the
federal court system...throwing God out of the public square, out of the
schools, the abortionists have got to bear some burden for this because
God will not be mocked and when we destroy 40 million little innocent
babies,we make God mad...I really believe that the pagans and the
abortionists and the feminists and the gays and the lesbians who are
actively trying to make that an alternative lifestyle, the ACLU, People for
the American Way, all of them who try to secularize America...I point the
thing in their face and say you helped this happen." 3
from them for this, but throwing God...successfull with the help of the
federal court system...throwing God out of the public square, out of the
schools, the abortionists have got to bear some burden for this because
God will not be mocked and when we destroy 40 million little innocent
babies,we make God mad...I really believe that the pagans and the
abortionists and the feminists and the gays and the lesbians who are
actively trying to make that an alternative lifestyle, the ACLU, People for
the American Way, all of them who try to secularize America...I point the
thing in their face and say you helped this happen." 3
In short, this was God’s punishment. Both of these ideological explanations fall
short. The young men who used the planes as weapons were as misguided as
Timothy McVeigh in demonizing the United States Government to justify his killing
of people in Oklahoma.
short. The young men who used the planes as weapons were as misguided as
Timothy McVeigh in demonizing the United States Government to justify his killing
of people in Oklahoma.
With China unwilling to play the role of the new “evil empire”, this vicious and
cowardly attack was the defense contractors- campaign contributors’ wet
dream. Having contributed millions of dollars to the Bush administration to eect
him to power. 4 Now, the entire United States treasury was available. And
rape the taxpayers they did. The United States Congress, without any
substantive discussion, for fear of being called unpatriotic and losing their
precious seats of power, passed the largest defense budget in the world
history. 5
Since the overwhelming majority of congressional districts have either a
defense contractor and/or a military installation there was little incentive to
oppose self-serving spending that will create very few jobs. With over 5,612
bases of all types in the United States as of 2001,every area of the country is
affected by the defense budget. Then there are the various contractors that
feed off these bases, the food suppliers, construction companies, service
industries, etc. This is why increasing defense spending is so popular with
Congress. 6
cowardly attack was the defense contractors- campaign contributors’ wet
dream. Having contributed millions of dollars to the Bush administration to eect
him to power. 4 Now, the entire United States treasury was available. And
rape the taxpayers they did. The United States Congress, without any
substantive discussion, for fear of being called unpatriotic and losing their
precious seats of power, passed the largest defense budget in the world
history. 5
Since the overwhelming majority of congressional districts have either a
defense contractor and/or a military installation there was little incentive to
oppose self-serving spending that will create very few jobs. With over 5,612
bases of all types in the United States as of 2001,every area of the country is
affected by the defense budget. Then there are the various contractors that
feed off these bases, the food suppliers, construction companies, service
industries, etc. This is why increasing defense spending is so popular with
Congress. 6
The Bush Administration proposed increasing the defense budget even higher. In the words of our president:
“We're learning a lot about modern warfare in the first theater, Afghanistan. We're learning
about weapons and how to use them better. It's proved that in this first phase that expensive
precision weapons not only defeat the enemy, but spare innocent lives. And the budget I
submit makes it clear we need more of them. (Applause.) We need to be agile and quick to
move. We need to be able to send our troops onto battlefields in places that many of us
never thought there would be a battlefield. We need to be agile and mobile. And, therefore,
we need to replace aging aircraft, and get ready to be able to defend freedom with the best
equipment possible. Our men and women deserve the best weapons, the best
equipment, and the best training.
"And therefore, I've asked Congress for a one-year increase of more than $48 billion for
national defense, the largest increase in a generation.” 7 The justification for this orgy of
defense spending free for all is the “war on terror”. In the words of our Secretary of Defense
before the House Armed Services Committee:“ Mr. Chairman, the events of September 11th
shattered some myths, among them the illusion that the post-Cold War world would be one
of extended peace, where our country and our friends and allies could stand down, reduce
defense spending and focus our resources on domestic issues. We learned on September
11th that that’s simply not the case.
"Now, through the prism of September 11th, we can see that our challenge today is not
simply to fix the past but to accomplish several difficult missions at once: to win the worldwide
war on terrorism; to restore capabilities by making delayed investments in procurement,
people and modernization and infrastructure, as was mentioned by the chairman and the
ranking member; and to prepare for the future by transforming for the 21st century.
"There are some who say it’s too much to ask that you try to undertake all three of those
challenges at once, that it’s impossible. Well, I don’t agree. I think it is not only possible, but
we have to do it. Our adversaries are transforming. They’re watching the way we were
successfully attacked, how we respond, how we may be vulnerable in the future, and I
suggest that we stand still at our peril. The 2002 budget, for these reasons, is a large one --
$379 billion, a 49 -- $48 billion increase from ‘02.” 8
about weapons and how to use them better. It's proved that in this first phase that expensive
precision weapons not only defeat the enemy, but spare innocent lives. And the budget I
submit makes it clear we need more of them. (Applause.) We need to be agile and quick to
move. We need to be able to send our troops onto battlefields in places that many of us
never thought there would be a battlefield. We need to be agile and mobile. And, therefore,
we need to replace aging aircraft, and get ready to be able to defend freedom with the best
equipment possible. Our men and women deserve the best weapons, the best
equipment, and the best training.
"And therefore, I've asked Congress for a one-year increase of more than $48 billion for
national defense, the largest increase in a generation.” 7 The justification for this orgy of
defense spending free for all is the “war on terror”. In the words of our Secretary of Defense
before the House Armed Services Committee:“ Mr. Chairman, the events of September 11th
shattered some myths, among them the illusion that the post-Cold War world would be one
of extended peace, where our country and our friends and allies could stand down, reduce
defense spending and focus our resources on domestic issues. We learned on September
11th that that’s simply not the case.
"Now, through the prism of September 11th, we can see that our challenge today is not
simply to fix the past but to accomplish several difficult missions at once: to win the worldwide
war on terrorism; to restore capabilities by making delayed investments in procurement,
people and modernization and infrastructure, as was mentioned by the chairman and the
ranking member; and to prepare for the future by transforming for the 21st century.
"There are some who say it’s too much to ask that you try to undertake all three of those
challenges at once, that it’s impossible. Well, I don’t agree. I think it is not only possible, but
we have to do it. Our adversaries are transforming. They’re watching the way we were
successfully attacked, how we respond, how we may be vulnerable in the future, and I
suggest that we stand still at our peril. The 2002 budget, for these reasons, is a large one --
$379 billion, a 49 -- $48 billion increase from ‘02.” 8
Figures are for latest year available, usually 2001. Expenditures are used in a few cases
where official budgets are significantly lower than actual spending. * 2000 Funding Table
prepared by Center for Defense Information.Sources: International Institute for Strategic
Studies, Department of Defense "For 45 years of the Cold War we were in an arms race
with the Soviet Union. Now it appears we're in an arms race with ourselves." Admiral
Eugene Carroll, Jr., U.S. Navy (Ret.) Deputy Director Center for Defense
Information.
Giving away the public treasury to defense contractors will not provide us with security. But
it will enrich various campaign contributors to the Democratic and Republican parties.
What this type of political opportunism and greed does is make us all cynical about
government’s ability to protect us. As Paul Krugman opined in the February 5, 2002
editorial page of the New York Times 12:
where official budgets are significantly lower than actual spending. * 2000 Funding Table
prepared by Center for Defense Information.Sources: International Institute for Strategic
Studies, Department of Defense "For 45 years of the Cold War we were in an arms race
with the Soviet Union. Now it appears we're in an arms race with ourselves." Admiral
Eugene Carroll, Jr., U.S. Navy (Ret.) Deputy Director Center for Defense
Information.
Giving away the public treasury to defense contractors will not provide us with security. But
it will enrich various campaign contributors to the Democratic and Republican parties.
What this type of political opportunism and greed does is make us all cynical about
government’s ability to protect us. As Paul Krugman opined in the February 5, 2002
editorial page of the New York Times 12:
Bush's Aggressive Accounting
"The events of Sept. 11 shocked and horrified the nation; they also presented the Bush
administration with a golden opportunity to bury its previous misdeeds. Has more than $4
trillion of projected surplus suddenly evaporated into thin air? Pay no attention to the tax
cut: it's all because of the war on terrorism. In short, the administration's strategy is to
prevent criticism of what amounts to a fiscal debacle by wrapping its budget in the flag.
And I mean that literally: the budget report released yesterday came wrapped in a red,
white and blue cover depicting the American flag.
But why am I so cynical? Isn't the war on terrorism a big deal? The answer is that
emotionally, morally, it is indeed a big deal; but fiscally it's very nearly a rounding error. It's
true that the administration is using the terrorist threat to justify a huge military buildup.
But there are a couple of funny things about that buildup. First, if we really have to give up
butter in order to pay for all those guns, shouldn't we reconsider future tax cuts that were
conceived in a time of abundance? "Not over my dead body" isn't really an answer. And
it's particularly hard to take all the grim war talk seriously when the administration is, at the
very same time, proposing an additional $600 billion in tax cuts.
Second, the military buildup seems to have little to do with the actual threat, unless you
think that Al Qaeda's next move will be a frontal assault by several heavy armored
divisions. We non-defense experts are a bit puzzled about why an attack by maniacs
armed with box cutters justifies spending $15 billion on 70-ton artillery pieces, or
developing three different advanced fighters (before Sept. 11 even administration officials
suggested that this was too many). No politician hoping for re- election will dare to say
it, but the administration's new motto seems to be "Leave no defense contractor behind."
"The events of Sept. 11 shocked and horrified the nation; they also presented the Bush
administration with a golden opportunity to bury its previous misdeeds. Has more than $4
trillion of projected surplus suddenly evaporated into thin air? Pay no attention to the tax
cut: it's all because of the war on terrorism. In short, the administration's strategy is to
prevent criticism of what amounts to a fiscal debacle by wrapping its budget in the flag.
And I mean that literally: the budget report released yesterday came wrapped in a red,
white and blue cover depicting the American flag.
But why am I so cynical? Isn't the war on terrorism a big deal? The answer is that
emotionally, morally, it is indeed a big deal; but fiscally it's very nearly a rounding error. It's
true that the administration is using the terrorist threat to justify a huge military buildup.
But there are a couple of funny things about that buildup. First, if we really have to give up
butter in order to pay for all those guns, shouldn't we reconsider future tax cuts that were
conceived in a time of abundance? "Not over my dead body" isn't really an answer. And
it's particularly hard to take all the grim war talk seriously when the administration is, at the
very same time, proposing an additional $600 billion in tax cuts.
Second, the military buildup seems to have little to do with the actual threat, unless you
think that Al Qaeda's next move will be a frontal assault by several heavy armored
divisions. We non-defense experts are a bit puzzled about why an attack by maniacs
armed with box cutters justifies spending $15 billion on 70-ton artillery pieces, or
developing three different advanced fighters (before Sept. 11 even administration officials
suggested that this was too many). No politician hoping for re- election will dare to say
it, but the administration's new motto seems to be "Leave no defense contractor behind."
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