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Begin New Search Topic Government Author William D. Hartung

1. Hidden Costs of War

Author:
William D. Hartung
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
Fourth Freedom Forum
Abstract:
The Bush administration's war on terrorism and its proposed military intervention in Iraq have sparked the steepest increases in military and security spending in two decades. Since September 11, 2001, the federal government has approved over $110 billion in increased military spending and military aid. Spending on national defense is slated to reach $399 billion in the Fiscal Year 2004 budget, and to rise to over $500 billion annually by the end of this decade. These vast sums do not include the costs of the ongoing war in Afghanistan or a war with Iraq. Steven Kosiak of the Center for Strategic and Budgetary Assessments estimates that only 5 to 10 percent of the Fiscal Year 2003 Pentagon budget is being set aside for anti-terror activities and homeland security.
Topic:
Security, Economics, Government, Terrorism, and War
Political Geography:
Afghanistan, United States, Iraq, and Middle East

2. Corporate Welfare for Weapons Makers the Hidden Costs of Spending on Defense and Foreign Aid

Author:
William D. Hartung
Publication Date:
08-1999
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
The defense and foreign aid budgets are the largest single source of government funding for private corporations. More than half of U.S. weapons sales are now being financed by taxpayers instead of foreign arms purchasers. During fiscal year 1996 (the last year for which full statistics are available), the government spent more than $7.9 billion to help U.S. companies secure just over $12 billion in agreements for new international arms sales. The annual $7.9 billion in subsidies includes taxpayer-backed loans, grants, and government promotional activities that help U.S. weapons makers sell their products to foreign customers. Also, the provision of low-cost facilities and extensive subsidies for research and development and mergers and acquisitions to major contractors fosters a “risk-free” environment in which weapons makers have little economic incentive to produce effective systems at affordable prices. Furthermore, a portion of the $120 billion the Pentagon spends each year on contracts with U.S. defense contractors is being wasted on defense pork—that is, redundant or unneeded weapons systems. Such subsidies and spending for defense pork can interfere with the fulfillment of legitimate security needs.
Topic:
Defense Policy, Arms Control and Proliferation, Climate Change, Government, and Industrial Policy
Political Geography:
United States