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The War Industry: Bad Job Creators, Bad Bosses, Bad Stewards of Tax Dollars

Posted: 09/14/11 12:32 AM ET

On Tuesday, the military contractors behind the "Second To None" campaign pleaded "no comment" to our War Costs campaign's full-page Politico ad exposing the economic damage caused by massive war budgets. The same day, they announced a press conference and the upcoming launch of a national campaign to scare people about job losses if we cut the war budget. It seems like they had a comment or two after all. But as these companies gather at the National Press Club on Wednesday morning to frighten you into funding their trust funds, remember: military spending costs us jobs compared to other ways of spending the money.

These contractors will undoubtedly try to obscure the fact that every $1 billion of military spending costs anywhere between 3,200 and 11,700 jobs or more when compared to other ways of spending the money. They'll probably also try to obscure the fact that because the deficit committee has to find spending reductions equaling a certain dollar amount, this is a zero sum game, pitting military spending against the exact kinds of spending that would create more jobs. If the industry is right, and we should be coming at the question of where to cut spending from the perspective of job creation, then we have to cut war spending because other cuts would cost even more jobs.

Reporters should also keep in mind that these folks have a history of fudging jobs numbers when they feel it's expedient for their profit margins. For example, back when Second-To-None-backer Lockheed Martin was trying to secure additional taxpayer dollars for its F-22 fighter jet in 2009, the contractor grossly inflated the number of jobs sustained by the program. The actual job numbers should have been less than 40 percent of those claimed by Lockheed. When this industry comes at you with jobs numbers, caveat emptor.

All this assumes, of course, that we buy the war industry's spin that for them, it's all about the workers. If one looks at these companies' histories, that's an absurd assumption. The organization through which the industry organized the Second To None campaign, the Aerospace Industries Association (AIA), includes on its executive committee representatives of companies which have paid more than $130 million in labor-related fines and settlements in the last 10 years, according to the Project on Government Oversight's contractor misconduct database. These violations include sexual harassment; Americans with Disabilities Act actions; federal safety standards violations; wrongful termination; age, sex and racial discrimination; and whistleblower retaliation.

Almost all of the above war industry misbehavior takes place on the government dime, of which the companies behind Second To None and AIA are very, very poor stewards. Their leadership [.pdf] includes executives at three of the companies cited by the recent Wartime Commission on Contracting's eye-popping report [.pdf] on the waste of $60 billion: DynCorp, ITT Corporation and L-3 Communications (The report discusses "ITT Federal Services," which is a subsidiary of ITT Corp.). In addition, the companies represented on AIA's executive committee have been responsible for a bucket-load of documented misconduct in federal contracting worth more than $5.7 billion since 1995, according to POGO's database.

We're having a hard time here understanding why we should look to the corporations behind Second To None to hire workers or spend our hard-earned money. Maybe they'd like to comment about that.

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02:35 AM on 09/15/2011
First you get rid of your competition so that the gov't can say no-one else could do the job. Then you bribe the politicians to approve massive budgets for big war toys. Then you can do whatever you like because they're on the hook for selling the program to the voters and, you guessed it, no-one else can do the job. Finally you come in 80% over budget and watch them have to suck it up. Must be nice.
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HUFFPOST SUPER USER
Overtone
See bio on the Aesop Institute website
02:14 PM on 09/14/2011
AN UNSUSPECTED THREAT OF MULTIPLE NUCLEAR MELTDOWNS EXISTS WORLDWIDE!

Mobilizing to prevent it can reboot the economy and generate millions of jobs.

See the Aesop Institute website for an explanation and a couple of maps that speak much louder than words.

This is a real peril, much worse than any terror attack. It needlessly threatens millions of lives and possibly the survival of the nation.

The public, the White House and the Congress need to become aware of the most pressing need for defense. It certainly should be a fast alternative to the war industry!

Mobilization to minimize the potential impact could even unify the country - survival is a powerful motivation.
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Peddler
Peddler of Information
02:03 PM on 09/14/2011
You condemned the Military Industrial Complex------and you have your opinions------but regardless of how imperfect and corrupt it is------it provides one thing that nobody else is providing-----JOBS! And when was the last time a poor person offered you a job? The wealthy controls the government------not the American people!
01:21 PM on 09/14/2011
(Part 2) Spending on infrastructure and R&D is investment. It comes back with profit in enhanced tax revenue. In the 50s we spent 2% of our GDP on infrastructure. Today 2%. We have had the same decline on investment in R&D.
No great power has survived with government spending on security over 3% of GDP. We have been over 7% for decades.
02:04 PM on 09/14/2011
Actually today we spend 0.2% on our infrastructure today and 1/3 of our 600,000 bridges are structurally deficient or functionally obsolete.
01:20 PM on 09/14/2011
(Part 1) There are two kinds of government spending, consumption and investment. War industry is consumption. Incessant wars in Europe were the reason people left to come here. The governments spent all the tax money on wars and it was consumed. There was no money to invest in national infrastructure and technology. Europe was stagnant on technology for a thousand years.
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Erudite2U
01:17 PM on 09/14/2011
Time to slaughter this cash cow!
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checkmoot
We have met the enemy and he is us.
01:07 PM on 09/14/2011
If we did not cut the budget at all, simply switched our money to jobs that would be building things for our country, instead of building things to blow up what other countries have built, spending money on research and care to save American lives instead of things to kill people in other countries. Well, I guess that is just a dream. If we did like Cuba and exported doctors, instead of bombs, would we have more friends and less enemies. You bet !!
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Dredd
Our government is a wartocracy.
01:07 PM on 09/14/2011
If the Wall Street Journal is correct that economically we live in a plutonomy, there is little anyone can do about it except the 1-2% wealthy.

http://blogdredd.blogspot.com/2011/09/homeland-big-brother-plutonomy.html
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MartinEden
United in the struggle...
01:04 PM on 09/14/2011
"War is the health of the state," said Randolph Bourne and he was being celebratory when he said it.
01:01 PM on 09/14/2011
One of the ways to improve the system is to bar the use of cost-plus contracts in defense contracting. That way the burden of cost overruns will fall exactly where it should: on the contractor, not the taxpayer.
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HUFFPOST SUPER USER
Ghoaster
The time is now
01:01 PM on 09/14/2011
Remember the american made M-1 Abrams in the Egyptian uprising? When video of that went out some folks thought we'd invaded. Alas that footage is not on CNN anymore
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cjsim
an 86 yr. old progressive democrat
12:53 PM on 09/14/2011
If voters continue to elect Rebulicans to Congress this practice will continue!!! cjsim
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HUFFPOST SUPER USER
too young but old enough
I already know how this is going to turn out...
02:12 PM on 09/14/2011
How would electing Democratic politicians change this practice? Seems that both parties have been feeding that particular beast for far too long to assume that it isn't supported by both.

As long as campaign contributions, lobbyists and special interests influence the "decisions" of our legislators, this practice will continue.
12:43 PM on 09/14/2011
No...really??? This is ground-breaking news.
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elamatt
Ever the optimistic realist
12:44 PM on 09/14/2011
Noooo...
01:09 PM on 09/14/2011
Hehe...sarcasm does not come through so well on the interwebs.
01:00 PM on 09/14/2011
Really that's about like saying the Obama administration gives taxpayer $ to places like Soyndra. I am shocked .. shocked....
01:05 PM on 09/14/2011
You are comparing 500 million to 600 billion? You may have been shocked.
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01:08 PM on 09/14/2011
Aren't you more shocked that the Bush administration provided the initial push to do so?
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elamatt
Ever the optimistic realist
12:42 PM on 09/14/2011
"War Industry"/MIC to Congress: "Oversight?? Oversight?? We don't need no stinking oversight!!"
01:02 PM on 09/14/2011
Maybe we should give the O admin a little oversight now too. Then we can have fewer Solyndra episodes.
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elamatt
Ever the optimistic realist
09:37 PM on 09/14/2011
I'll agree with that, what a mess, an expensive mess (are there any other kinds?).
satyrday
If my micro-bio is way too long, will it be trunca
12:08 PM on 09/15/2011
That's 1.3% of the DOEs loans. Virtually the only one that is troubled. If only our capitalist banks could have such a good record.
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beverlyg
12:36 PM on 09/14/2011
Ome of the most important reasons we have a global police force (Defense) is to protect our overseas businesses. These businesses are shipping our plants and jobs overseas and keeping their profits overseas in order to avoid paying taxes in the USA! Consequently they are paying nothing for the protection while the USA slides into bankruptcy
02:00 PM on 09/14/2011
Isn't that a government subsidy to the companies doing the business. How much does that cost? Sounds like corporate welfare to me. I will bet that the total cost is way more the our government gives the American poor.