More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Robert Greenwald

GET UPDATES FROM Robert Greenwald
 

Top 5 Taxpayer Turkeys Fattening War Industry CEOs

Posted: 11/23/11 06:08 PM ET

Congress departs for the Thanksgiving holiday having left us a gift. With the deficit committee failing to produce a plan to cut the deficit and with across-the-board cuts now the default, there remains a real chance for us to untie the Congressional straightjacket and refocus the national conversation on sustainable and constructive job creation.

The war industry knows this, and its allies in Congress are already moving to stop cuts to their piece of the federal budget, a total of $500 billion over 10 years. We're certain the war industry's Congressional allies are one among many things contractor CEOs are thankful for.

But as Americans take stock this Thanksgiving holiday, we thought it appropriate we expose some other turkeys that the war industry is celebrating this holiday season.

1. The V-22 Osprey

Not even then-Defense Secretary Dick Cheney could spike the V-22 Osprey. Each $70 million unit takes off like a helicopter, flies like a plane, and despite being responsible for the deaths of 30 test pilots, the $54 billion program is still business as usual for Congress. Free flight demonstrations for politicians and influential columnists (flights that manage to not spontaneously combust mid-air), as well as the Marine Corps insistence to institutionalize the aircraft have sustained the Osprey contract into one of the biggest black holes of taxpayer money.

There remains $18 billion left unspent in the fund behind the Osprey, one of two pools of war contractor projects the Project on Government Oversight identified as "cuts that could save taxpayers billions without putting American lives at risk." But the House committee chairman who oversees the project also represents a rural Texas district where the aircraft is assembled.

War contractors are toasting their lawyers and lobbyists who made this legal.

2. Rep. Buck McKeon

Rep. Buck McKeon is another Congressman who enables war industry CEOs and corporations to both enjoy record paydays and low tax rates. As the Chair of House Armed Services Committee, McKeon is the most powerful link between the war contractors and the power of the purse in the House of Representatives.

Earlier this month, McKeon defended the war contractors' bloated budget and broke into tears during a hearing about soldiers in Afghanistan. His tears were misplaced: war contractors enjoy a much larger slice of the pie than the troops. Almost on the same day, a Stimson Center study (.pdf) demonstrated how the U.S. military had used money, pegged for soldiers serving in Iraq and Afghanistan, on $1 trillion on tanks, ships and jets since Sept. 11, 2001.

Twenty-two percent of that $1 trillion came from "supplemental" war spending bills. In other words, $232.8 billion of taxpayer money that would've provided soldiers with better body armor, for example, was spent on Abrams tanks and jet fighters, both projects enrich war contractors while doing nothing to bolster the safety of our troops or our nation's safety at home.

It's no surprise then that Lockheed Martin's biggest political benefactor is Rep. Buck McKeon, who made this all possible. For that, he's a gravytrain-enabler who lets war contractors parade around in America's wealthiest 0.01%.

3. F-35 Jet Fighter

The Osprey is a Cornish game hen compared to the 49,500-pound mashed potato keg that is the largest war contract in the history of the Pentagon.

The F-35 Airplane Joint Strike Fighter has never seen one day of combat. It's, at best, questionably safe for human testing. The Aero News Network reported it was the latest in a long history of FUBAR cranberry sauce.

As those who have followed the program know, the JSF program has been plagued by cost overruns and delays. The test fleet was recently grounded due to a power supply problem, and had only just been returned to operational status. Back in January, then-defense-secretary Robert Gates had put the program on notice by imposing a two-year probation after discovering other structural flaws. Budget hawks have long viewed the program, often described as the most costly defense acquisition in history, as a tempting target. A major program review is also reportedly planned as pressure grows on Congress and the President to cut spending.


The first real flight was pegged for 2016, with a program cost of $40 billion to $50 billion. An independent government report found $28 billion of F-35 spending has been a waste. The aircraft's makers, Lockheed Martin, like to point out the myriad of ways their profits could be lowered on the project, and we've demonstrated how money earmarked for Lockheed Martin executives would create more jobs were it spent on education or infrastructure.

Dear F-35, you make the war profiteers' belly warmer than a poor man's glass of whiskey. And for that, Lockheed Martin loves you.

4. Sen. Jon Kyl

There's failing to lead and leading to failure, and the Senate's No. 2 Republican is an expert at both.

You might remember Kyl's knack for making disparaging remarks on the Senate floor that were not intended to be a "factual statement." But what really makes Kyl the stuffing at the Boeing holiday party is his insistence that millionaire war contractors be spared the same economic pain as middle class families.

Despite adhering to an ideology that equates corporations with living human beings, Kyl sees every reason to exempt war contractors from the belt tightening that's being forced upon families across the U.S. While favoring austerity elsewhere, Kyl is doing all he can to stop a 15 percent cut to the war budget.

Even with a 15 percent cut factored in, that would be about half the cuts of Presidents Eisenhower and Nixon and less than cuts made by George H. W. Bush, according to Lawrence J. Korb, an assistant secretary of defense in the Reagan administration. Moreover, a 15 percent cut is a child's plate of peas when the war budget has increased by 50 percent since 2001 and will still be $37 billion more in 2021 than it is in 2011.

5. You and me

We enable the war profiteers. We pay for war contractor pensions, their vast network of lobbyists, and the salaries for top executives.

Technically, it's our elected officials who transform our tax dollars into self-perpetuating riches for Lockheed Martin CEO Robert Stevens ($21.89 million salary last year), Northrop Grumman CEO Wes Bush ($22.84 million) and Boeing CEO James McNerney ($19.4 million).

These companies use our tax dollars to further spin the system toward their corporate advantage. In many cases, the war contractors are bigger villains than CEOs at Bank of America and JP Morgan Chase.

Does that make us the war contractors' juiciest turkey?

It makes me mad and that's why I've stopped whispering and started shouting.

 
 
 

Follow Robert Greenwald on Twitter: www.twitter.com/robertgreenwald

Congress departs for the Thanksgiving holiday having left us a gift. With the deficit committee failing to produce a plan to cut the deficit and with across-the-board cuts now the default, there remai...
Congress departs for the Thanksgiving holiday having left us a gift. With the deficit committee failing to produce a plan to cut the deficit and with across-the-board cuts now the default, there remai...
 
 
  • Comments
  • 128
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2 3 4  Next ›  Last »  (4 total)
02:24 PM on 11/26/2011
This article was written by an individual without any real knowledge of military requirements or the DOD procurement process, for consumption by like minded individuals who know even less.

Fox News should have patented the business model of creating biased pseudo news for individuals that only want to hear and read stories that reinforce their existing opinions. That way they could sue the HuffPost for patent infringement.
11:48 AM on 12/01/2011
care to educate us on the process?
photo
HUFFPOST COMMUNITY MODERATOR
tacevad
American SS Card Carrying Socialist
08:12 AM on 11/26/2011
the inherent trouble lies with omnibus spending bills where "favors" abound , favors of congresspeople to one another as well as to the defense industry. Yes locating a big defense contractor's plant in a congressman's district benefits his own constituents but in order to get it the contractor has to use paid lobbyists and vast sums of money that they know they will recoup from the government(read that the taxpayers) easily, meanwhile the congressperson involved has to ply his fellow congresspeople with promises to back their own little slices of the pie to get support for their own "projects" and all of this is done on the American taxpayers dime whether present taxpayer or more likely future ones. It is how the game is played and the system is rigged in favor of the MIC.Those areas that depend on Lockheed and Boeing and Grumman-Northrup will no doubt suffer more than those CEOs with their golden parachutes should changes be made unless the changes take place specifically at the top. Our Troops do need weapons but they do not need weapons that don't work and are so vastly overpriced.The time has long ago come to cut the fat out of the MIC.
HUFFPOST SUPER USER
scorpio49
11:27 AM on 11/26/2011
the roman senate outlawed omnibus bills
knowing what kind of damage they can cause.why can't we?
photo
HUFFPOST SUPER USER
Gottlieb
hated by left since 1973 and right since 1982
11:05 PM on 11/25/2011
This is another fine corporate plan to "save" the Defense Budget.

http://motherjones.com/politics/2011/11/defense-business-board-pentagon-wall-street?page=1
photo
HUFFPOST SUPER USER
Rixar13
U.S. Coast Guard Veteran and University
08:05 PM on 11/25/2011
"We enable the war profiteers. We pay for war contractor pensions, their vast network of lobbyists, and the salaries for top executives."

We need sanity back...
Liberalism - is trust of the people tempered by prudence.
Conservatism - is distrust of the people tempered by fear.
William Gladstone
07:27 PM on 11/25/2011
My God!! This is as bad as Solyndra!!
photo
HUFFPOST SUPER USER
shutzy56
"George meet Harry. You both drive me crazy."
02:55 AM on 11/26/2011
Worse.
photo
HUFFPOST COMMUNITY MODERATOR
tacevad
American SS Card Carrying Socialist
07:53 AM on 11/26/2011
MUCH worse, this is ongoing and perpetual
12:54 PM on 11/25/2011
They left and still no jobs....jobs will put money in the coffers and well as get the economy going....jobs, jobs, jobs!!!!
03:33 AM on 11/25/2011
nearly everything we use in our military is reaching the end of its service life...

all of this spending will happen either now, or in the near future
This user has chosen to opt out of the Badges program
photo
SocratesSiddhartha
"Poverty is the worst form of violence." Gandhi
11:27 PM on 11/24/2011
The US MIC and Pentagon, the 150,000 lb. eight armed Gorilla and the biggest blood-sucking money pit the world has ever seen...fed on the treasures of humanity the blood of our soldiers and the innocent.
photo
HUFFPOST SUPER USER
TheTightwireGuy
Attempting to balance reason and passion
08:27 PM on 11/25/2011
Well said!
HUFFPOST SUPER USER
bigkay
10:34 PM on 11/24/2011
Why isn't this discussed on Main Stream Media? 24hr cable? The Washington Post did an excellent investigation of the growth of private contractors, sine 9/11 and it was a flash in the pan.
More interest in Michael Jackson Kardashians., Dancing With The Stars.
02:01 AM on 11/25/2011
Corp America owns the Main Stream Media. It is in their best interests to entertain you, not inform you.
photo
patient i am
i've run out of patience
12:58 PM on 11/25/2011
entertain and distract. they are pros at it.
This user has chosen to opt out of the Badges program
10:32 PM on 11/24/2011
This article confirms that there should be NO more income tax hikes-

on ANY American until the massive fraud and waste is eliminated-

from the gigantic federal government spending machine.

Stop feeding the Beast!

Starve the Beast where it needs to be starved.

The GAO estimates that American Taxpayers would save-

over $200 BILLION each and every YEAR-

if fraud, waste and duplication was wiped from the putrid system.

That's over $2 TRILLION in one decade.

And just how much was the Super Committee looking to eliminate-

from spending over the next ten years?

$1.2 trillion?

There's your easy target.

When you feed the Beast more and more?

All it does in grow its big fat belly.
HUFFPOST SUPER USER
davegstein
08:22 PM on 11/24/2011
Nearly one half,a whopping 350 billion of our defense budget goes to Private contractors.And of these,how many are NO-BID.......or in other words,candy like favors and handouts..all the result of back room deals,back of limo deals,influence peddling and lobbyists.
Besides removing all money from our electoral system,we need to get congressman out of all decisions regarding certain types of budgets.These frauds need not be involved in this process..because you know they are going to use the system for their personal gain...that's what crooks do.
03:28 AM on 11/25/2011
sometimes no-bid contracts go to the only company that can handle the work...

like Haliburton. The United States does not have another company that could have handled the volume of work required in Iraq.....

Please do us a favor and list the names of other companies that could have done the job
HUFFPOST SUPER USER
doctorkosan
PhD Chem E, HBS
11:20 AM on 11/25/2011
How about the US Army?
photo
patient i am
i've run out of patience
12:59 PM on 11/25/2011
and it is history how much haliburton threw down the rabbit hole.
08:14 PM on 11/24/2011
The munition big shots make millions and I mean millions of dollars in war making weapons that are overpriced. Plus states vie for the contracts to make it all. Unless of course, they are made overseas. I think at one time a congressman discovered that an important part of some weapon was being made in China and not here. Talk about being held in the grip of a communist country.
07:00 PM on 11/24/2011
Brilliant: sadly true.
05:29 PM on 11/24/2011
That's the beauty and the reason to stand by these mandated defense cuts. Their tentacles are so deep through so many congressional districts that a cutback any other way is impossible.
photo
SonOfUgh
Your micro-bio is empty
02:41 AM on 11/25/2011
I suspect they will find a way to not cut the MIC but to somehow double the cuts to the social saftey net. Or the MIC cuts will be to veterans benefits. They sure as heck won't cut the big weapon systems and the contractors.
HUFFPOST SUPER USER
Geo Bruno
Balance the farces that release within you
04:14 PM on 11/24/2011
So when do we beat our swords into plowshares
HUFFPOST SUPER USER
bigkay
10:37 PM on 11/24/2011
Maybe just fix the infra-structure in the U.S.A. that is crumbling, bridges 100 yr.old sewer systems, electrical grids, the list is endless. Defense industry could build high speed trains , instead of drones & tanks.
02:06 AM on 11/25/2011
When plowshares investment pays a bigger dividend then the war toys.

In other words, never.
HUFFPOST SUPER USER
bigkay
11:24 AM on 11/25/2011
Sad but true, the U.S.A. defense industry, must supply all the dictators in the world with weapons Bahrain /Saudi . & arm other countries against their neighbors. To think our President has the AUDACITY to preach democracy is a travesty.