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William Hartung

William Hartung

Posted: September 16, 2010 03:16 PM

Obama administration Defense Secretary Robert Gates has been receiving high praise of late for his efforts to cut costs at the Pentagon. The most obvious case in point is the recent cover story in Newsweek that portrays Gates as the second coming of Dwight Eisenhower.

There's no question that Gates has made an effort. In his first year in office, he ended the F-22 fighter program, trimmed some of the more dysfunctional missile defense programs, and cancelled the vastly overpriced Presidential helicopter. This year he is trotting out a series of management reforms that include reducing "gold-plating" -- the practice of adding more and more capabilities to a weapons system without regard to cost -- to increasing competitive bidding for service contracts. His procurement reform package includes 23 initiatives in all, all designed to get more "bang for the buck" out of Pentagon spending.

There's just one major problem with Gates's approach (along with many minor ones, but I won't go into them here). He wants to keep increasing the military budget, which is already at post-World War II highs. As noted in the recent report of the Sustainable Defense Task Force -- a group of experts convened with the encouragement of Rep. Barney Frank (which includes yours truly as a member) -- the only real way to introduce fiscal discipline at the Pentagon is to cut spending. As long as contractors like Boeing and Lockheed Martin know that what Gates takes away with one hand will be given back with the other, they have no real incentive to cut costs. And if Gates's reforms do manage to reduce costs, the savings should go to the taxpayers, not the weapons makers.

Take Lockheed Martin for example. When Gates ended their F-22 combat aircraft last year -- a budget cut of about $4 billion -- he increased the company's F-35 Joint Strike Fighter program by a comparable amount (about $4 billion). He even bragged that the F-35 increase would create more jobs than the number lost as a result of the F-22 cancellation, noting that "I think we've done a pretty good job of taking care of the industrial base."

Even Gates's examples of programs he hopes to get under control underscore the limits of his approach. He takes pride in the fact that his department will scale back the speed and size of a new ballistic-missile firing submarine so that its projected costs are more like $5 billion than $7 billion per ship. Leaving aside the question of whether these savings can be realized, why build a new missile-firing submarine at all? The administration has pledged to cut nuclear weapons substantially, and using these large submarines to fire non-nuclear missiles is an immensely expensive way to accomplish that task.

As Laura Peterson of Taxpayers for Common Sense writes in the organization's blog, "If Gates would try applying the affordability test to military personnel, operations and our national security strategy, we might find some real savings." The strategy is key -- as long as it is U.S. policy to maintain over 700 overseas military bases and a Navy, Army and Air Force designed to go anywhere and fight any battle, military spending will continue to go up, and there will be plenty of money for the weapons industry. In a tight budgetary environment, this spending will come at the expense of other priorities -- from deficit reduction to infrastructure investment to aid to the unemployed. Regardless of how one thinks the savings should be spent -- or not spent, so as to reduce the deficit -- the Pentagon needs to go on a serious diet. If Robert Gates takes on that task, he can truly be seen as a reformer.


 
 
 
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11:56 AM on 09/17/2010
Secretary Gates is the fox in the cost cutting at Defense henhouse. Weapons are a drain on the economy beause they have not intrinsic value in peace time. Shrinking Defense was part of the reason that Bill Clinton had a thriving economy (with unemployment under 4%) and a budget surplus. With a draw in Korea and four failed wars since, we need to really rethink whether we want to continue to try to be the Sparta of the modern world. As demonstrated very clearly in Iraq, military superiority leads to wars of aggression. A Defense budget of less than $400 Billion would be in all of our best interests.
HUFFPOST PUNDIT
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:49 AM on 09/17/2010
All managers, including Gates, ask for as large a budget as possible, as they should.

Our job is to tell them how much they get to spend, they figure out how to best spend it.

Gates is doing his job. Obama and Congress need to do their job: cut defense spending.
HUFFPOST SUPER USER
opines
10:47 AM on 09/17/2010
As long as Robert Gates, Texan, GWB appointee, remains Secretary of Defense, the policy of endless wars, lucrative contracts for Halliburton and other private contractors and outsized Pentagon budgets will continue.
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HUFFPOST COMMUNITY MODERATOR
tacevad
American SS Card Carrying Socialist
09:57 AM on 09/17/2010
"Cuts" denotes a decrease overall which is not the case here Gates is shuffling monies and increasing them overall
09:16 AM on 09/17/2010
Gates speaks for this administration and as we can see that they are proposing to continue wasting a fortune on the overseas empire while the congress is getting ready to cut back on the social safety net at home. We would rather invest massively in interfering in other people's business and trying to control the world than in trying to make America a better place. I agree with Ron Paul and Alan Grayson and say no to the American Empire.
HUFFPOST PUNDIT
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:51 AM on 09/17/2010
Less than 10% of our defense budget goes to Afghanistan.
There are 90,000 US troops in Japan and Germany that cost much more.
That's the American Empire that needs to be dismantled.
Maybe that's what they meant, but I doubt it.
08:25 AM on 09/17/2010
By not taking steps to bring our overall military spending in line with that of other nations Gates betrays his true motivation: appearance over accomplishments. In every area our military system costs are spiraling upward, and programs, directives, and other paperwork approaches to reversing the trend will be as successful as they have in the past, which is to say, complete failures.

We are the leading member of a comprehensive, cohesive alliance that has proven itself over and over: NATO. We also have trustworthy, dependable allies in Asia. So why do we continue to post forces of occupation in the homelands of our World War 2 enemies, and why do we not account for their contributions to any potential war in assessing our own needs?

Our total expenditures dwarf those of the next 20 big military spenders, combined. I keep asking, "If we are really as smart as our DoD contractors and politicians say we are, how come we have to spend so much more than everyone else on defense?" Of course, the answer is that we are not really any smarter, and that our military budget is yet another example of welfare for the rich. I should not complain: you taxpayers have been paying over $300,000 per year for my services. (No, I make much less than that, but it includes lots of middlemen.) Perhaps the Tea Party should complain about folks like me vice the poor. Think they will? Ha!
HUFFPOST PUNDIT
ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
10:54 AM on 09/17/2010
It's our job to cut the defense budget, not Gates. Every manager asks for as big a budget as possible, that's their job. They are told "you get less, make the best of it". That's the way it works in business, no different here. Blaming Gates is absurd. It's up to Obama and Congress to set the budget, Gates works within it.
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HUFFPOST SUPER USER
Edward Standley
opinionated jerk
08:04 AM on 09/17/2010
I have a lot of respect for Def Sec. Gates. Nobody "likes" the business of war. He's really up against it though, until there is lobbying reform. Read recently that John Ashcroft now has a "consulting firm" that pushes products for defense and security contractors to D.C. The former ATTORNEY GENERAL OF THE UNITED STATES fer cryin' out loud. Hope Gates truly is following in Ike's footsteps.
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HUFFPOST SUPER USER
Donald Simon
07:42 AM on 09/17/2010
A drastic shrinking of our military budget and stop using private contractors that hides the expense off budget is the only approach that makes sense.
HUFFPOST SUPER USER
thewho77
03:23 AM on 09/17/2010
According to CIA World factbook.
https://www.cia.gov/cia/publications/factbook/geos/us.html
The five largest European Union Nations

Germany 82.3 mil people GDP $2.81 Tril (34,200/pp) 1.5% 42 Billion
U.K. 61.1 mil people GDP $2.17 Tril (35,400/pp) 2.4% 52 Billion
France 64.1 mil people GDP $2.11 Tril (32,800/pp) 2.6% 55 Billion
Italy 58.1 mil people GDP $1.76 Tril (30,200/pp) 1.8% 32 Billion
Spain 40.5 mil people GDP $1.36 Tril (33,700/pp) 1.2% 16 Billion

Total 306.1 mil people Total GDP 10.21 Tril 197 Billion Dollars military Spending

USA 307.2 mil people GDP 14.25 Tril (41,600/pp) 2010 663 billion
CANADA 33.5 mil people GDP 1.29 Tril (38,400/pp) 1.1% 14 Billion
MEXICO 111.2 mil people GDP 1.47 Tril (13,200/pp) 0.5% 7 Billion
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parlimentMike
Don't settle for less evil, demand good
02:47 AM on 09/17/2010
All the biggest threats to America's continued well-being can be found in boardrooms. Give 20% of the Pentagon's budget to financial crimes enforcement. The next biggest threat is the corrupt politicians they buy. Give 15% of the Pentagon's budget to investigating Congress. Give 20% to aid the Americans conned into fighting for the benefit of politicians and oil companies.

Return the rest to the treasury.
HUFFPOST SUPER USER
thewho77
12:46 AM on 09/17/2010
We should spend exactly what we are getting out of the DoD. NOTHING,. nada , zero zip
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checkmoot
We have met the enemy and he is us.
11:01 PM on 09/16/2010
The military budget is the biggest welfare program we have. Spending money we don't have, for weapons we don't need just to save jobs. Couldn't the jobs be saved and used for things that we need ? Maybe fixing worn out pipelines, bridges, healthcare ??? Twenty four aircraft carriers ???? Sheeesh !!!! In the whole damn world there are only 32 and ours are bigger. Are we getting ready to attack China ???
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Buckeye54
...the One your mom warned you about!
09:19 PM on 09/16/2010
All of these space--age fighters are unnecessary. We haven't even used them in our current conflicts. Neither Iraq or Afghanistan has an air force.
We could probably cut half (if not more) of our overseas bases. The time has long past when we should feel obligated to defend West Germany, Europe, Japan or Korea. They have strong and vibrant enough economies to defend themselves.
And our navy is second to none. We should mothball about half of our carrier-battle groups. No navy in the world would even then come close to matching ours.
And then spend some of the money saved on our veterans returning from Iraq and Afghanistan on treating PTSD and brain injuries and other wounds. This alone will take a significant chunk of our defense spending if we do it properly, as we should.
11:40 PM on 09/16/2010
Thank you. Faved and fanned, from a 23 year Navy veteran.
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HUFFPOST COMMUNITY MODERATOR
tacevad
American SS Card Carrying Socialist
10:05 AM on 09/17/2010
"No navy in the world would even then come close to matching ours." For several reasons, no other nation is as full of fearful people willing to believe those who benefit the most from Government largess. Plus, one well designed missle can destroy an aircraft carrier .Jimmy Doolittle showed long ago that Air Power was the death of the battleship.
researcher
researcher
07:19 PM on 09/16/2010
the industrial military complex will have nothing to do with this.

they control the gov not the other way around.

kind of like this axiom.

with communism man exploits man with capitalism it is the other way around.

naw lets keep that love affair with capitalism going it is working so well we now have confirmed corp capitalists in the supreme court.

after all a corp is a person and money is free speech.

we have only begun to see the results of thirty years of deregulated capitalism reagan style.

reagan was a genius he helped americans fall in love with capitalism free trade free markets trickle down theory.

pure genius.

the rich have been smiling for 30 years and of course want more. ie human thing, greed.

corporations actually get tax breaks for taking jobs out of america.

man that is the genius of the capitalists ten times smarter than most americans.

they can even get the tea party folks to do their dirty work for them. pure genius.

they can even get the supreme court to do their dirty work for them.

supreme court judges in black robes and former lawyers.

at least they wear black got to give them that.
T-Haight
What was wrong with federalism?
07:01 PM on 09/16/2010
1--> Gates is on his way out; he retires in less than a year.

2--> Everybody can agree that federal program "X" is overfunded. Please detail what X is (and not just blank "Military Spending")

3--> The front-page tag line says that military spending is at a post WWII high. That's only true using certain metrics. While it's true that military spending is higher in inflation-adjusted dollars, the trend is much smaller if you go per capita. Further still, military spending is actually smaller today in terms of percentage of GDP. You should be skeptical any time someone tries to say spending is either higher or lower than WWII, because they are either ignorant or hiding facts.
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HUFFPOST SUPER USER
Russell Masingale
weary I am of the Astroturf.
02:49 AM on 09/17/2010
did you miss the osprey? a chopper not even the marines is was made for wanted it. as for point #3 does the fact that our budget for the dod is larger BY ITSELF is larger than the defense budget for the next SIX largest armed forces? or the fact that we are outsourcing a large part of our security comittments to private security firms? do your numbers account for how much we pay Mercs to fight for us?
08:38 AM on 09/17/2010
OK, you want some examples: how about an agency? DARPA. I worked for those jokers for over 10 years; their approach is to buy whatever outlandish idea someone comes in with, and not start asking questions as to its feasibility until they have already sunk millions of dollars into it. I worked one program that was a sinkhole for over $220 Million; when they decided they were "done" they asked the services if they wanted it, and all said "No". Had they asked at the start, the money could have been spent elsewhere. I worked another job for DARPA that produced a successful new technology, but in the end it failed because the services wanted to use it for something that did not meet DARPA's intentions.
Back in the early 1990s I did a study for about $20,000 that demonstrated that a key performance metric for a new Navy system was being overestimated by a factor of 50. Because the Navy and contractor wanted the system, they went ahead and spent nearly half a Billion dollars before canceling it. Guess what. The reason was that they were unable to get within a factor of 50 of the key metric.
If you talk to a thousand honest defense analysts (and there are certainly more than that) you will get thousands of additional tales of how the DoD loves to pour money down rat holes.