Follow us on social

What Paul Krugman gets wrong about the military industrial complex

What Paul Krugman gets wrong about the military industrial complex

The NYT columnist uses irrelevant metrics to argue for giving more money to the Pentagon.

Analysis | Military Industrial Complex

New York Times columnist Paul Krugman would like you to know that the term “military-industrial complex” (MIC) is outmoded and that we spend far less on the Pentagon now than we did when President Eisenhower introduced that phrase in his 1961 farewell address.

Krugman is wrong on both counts.

First, he uses a misleading measure of Pentagon spending that obscures rather than reveals just how enormous our investment in that agency is by historical standards. He notes that Pentagon spending is a smaller share of the national economy than it was in Eisenhower’s day. This is true but irrelevant. There is no reason that Pentagon outlays should track the growth of the overall economy, which is six times as large now as it was in 1961. But no one in their right mind is suggesting a sixfold increase in the Department of Defense’s budget. The level of military outlays should be determined by how much is needed to address the security risks we face, not by arbitrary comparisons with the size of the economy.

The best measure of Pentagon spending is — wait for it — how much we actually spend on the Pentagon. Our current military budget is more than twice as much, adjusted for inflation, as it was in Eisenhower’s day. And if current trends continue, it is poised to reach $1 trillion or more in the next year or two. That may seem like a manageable sum to Mr. Krugman, but most taxpayers would disagree.

As for the relevance of the term “military-industrial complex,” it is more a question of linguistic preference than a reflection on the continuing influence of the arms lobby. Krugman is right to point out that U.S. involvement in the wars in Gaza and Ukraine is not being done at the behest of weapons makers seeking a big payday. But the big contractors are poised to profit from current wars, and their services don’t come cheap.

More importantly, the arms lobby has exploited the war in Ukraine to press for special favors that have nothing to do with defending that country: cushy multi-year contracts; reduced scrutiny that will enable more price gouging, cost overruns and performance problems; rushing arms sales out the door with less vetting of their human rights and strategic impacts; and supersizing the arms manufacturing base at taxpayer expense.

Whether you call it the MIC, the arms lobby, or the Salvation Army, the big weapons makers and their allies in Congress and the Pentagon have as much or more power and influence now as they did when Eisenhower left office.

The MIC, or whatever Paul Krugman chooses to call it, is still a lobbying powerhouse. Lockheed Martin and its cohort routinely team up with key members of Congress to add more money to the Pentagon budget than the department even asks for, mostly for weapons that are built in the states of those officials. It is a classic case of special interests overriding the national interest.

In pursuit of these excess funds, which can amount to tens of billions of dollars each year, the industry brings its impressive lobbying machine to bear. The arms industry makes tens of millions of dollars in campaign contributions every election cycle, with a focus on members of the armed services and defense appropriations panels. And the sums spent are not small. House Armed Services Committee chair Mike Rogers (R-Ala.) received half a million dollars in weapons industry contributions in the most recent election cycle, with other key members not far behind.

The arms sector spends even more on lobbying than it does on campaign contributions, employing over 800 registered lobbyists in all — more than one for every member of Congress. Most of these lobbyists have come through the revolving door from senior positions in Congress or the Pentagon, and they use their connections with former colleagues to curry favor for their corporate employers.

For example, a recent study that my colleague Dillon Fisher and I did for the Quincy Institute found that 80 percent of four-star generals and admirals who retired in the past five years went to work on behalf of the arms industry in one form or another: as board members, lobbyists, executives, consultants, or advisers to firms that invest heavily in the arms sector.

Can we afford to spend more on the Pentagon? Technically yes, but it would come at a high price, reducing our capacity to address other urgent national needs. The $12 to $13 billion the Pentagon spends every year on the overpriced, dysfunctional F-35 combat aircraft is more than the entire annual budget of the Centers for Disease Control. And in one recent year, Lockheed Martin received more federal funding than the State Department and the Agency for International Development combined. The Pentagon consumes well over half of the federal discretionary budget which is the part of the budget that is available for public investment. Environmental protection, public health, job training, criminal justice and other basic functions of government have to compete for what’s left after the Pentagon gets its oversized share of the pie.

I do agree with Krugman on one point: “By all means, let’s have a good faith argument about how much America should spend on its military.” But a thorough, balanced debate that actually leads to beneficial changes in spending and strategy will be extremely difficult to carry out without curbing the influence of the military-industrial complex.

Thanks to our readers and supporters, Responsible Statecraft has had a tremendous year. A complete website overhaul made possible in part by generous contributions to RS, along with amazing writing by staff and outside contributors, has helped to increase our monthly page views by 133%! In continuing to provide independent and sharp analysis on the major conflicts in Ukraine and the Middle East, as well as the tumult of Washington politics, RS has become a go-to for readers looking for alternatives and change in the foreign policy conversation. 

 

We hope you will consider a tax-exempt donation to RS for your end-of-the-year giving, as we plan for new ways to expand our coverage and reach in 2025. Please enjoy your holidays, and here is to a dynamic year ahead!

A.PAES via shutterstock.com

Analysis | Military Industrial Complex
F35
Top image credit: Brian G. Rhodes / Shutterstock.com

The low hanging DOGE fruit at the Pentagon for Elon and Vivek

Military Industrial Complex

Any effort to suggest what Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency should put forward for cuts must begin with a rather large caveat: should a major government contractor with billions riding on government spending priorities be in charge of setting the tone for the debate on federal budget priorities?

Musk’s SpaceX earns substantial sums from launching U.S. government military satellites, and his company stands to make billions producing military versions of his Starlink communications system. He is a sworn opponent of government regulation, and is likely, among other things, to recommend reductions of government oversight of emerging military technologies.

keep readingShow less
war profit
Top image credit: Andrew Angelov via shutterstock.com

War drives revenue increases for world's top arms dealers

QiOSK

Revenues at the world’s top 100 global arms and military services producing companies totaled $632 billion in 2023, a 4.2% increase over the prior year, according to new data released by the Stockholm International Peace Research Institute (SIPRI).

The largest increases were tied to ongoing conflicts, including a 40% increase in revenues for Russian companies involved in supplying Moscow’s war on Ukraine and record sales for Israeli firms producing weapons used in that nation’s brutal war on Gaza. Revenues for Turkey’s top arms producing companies also rose sharply — by 24% — on the strength of increased domestic defense spending plus exports tied to the war in Ukraine.

keep readingShow less
Tibilisi Georgia protests
Top photo credit: 11/28/24. An anti-government protester holds the European flag in front of a makeshift barricade on fire during the demonstration in Tibilisi, Georgia. Following a controversial election last month, ruling party "Georgian Dream" Prime Minister Irakli Kobakhidze announced earlier today that they will no longer pursue a European future until the end of 2028. (Jay Kogler / SOPA Images via Reuters Connect)

Streets on fire: Is Georgia opposition forming up a coup?

Europe

Events have taken an astonishing turn in the Republic of Georgia. On Thursday, newly re-appointed Prime Minister Irakli Kobakhidzeannounced that Georgia would not “put the issue of opening negotiations with the European Union on the agenda until the end of 2028,” and not accept budget support from the EU until then, either.

In the three-decade history of EU enlargement into Eastern Europe and Eurasia, where the promise of membership and the capricious integration process have roiled societies, felled governments, raised and dashed hopes like no other political variable, this is unheard of. So is the treatment Georgia has received at the hands of the West.

keep readingShow less

Election 2024

Latest

Newsletter

Subscribe now to our weekly round-up and don't miss a beat with your favorite RS contributors and reporters, as well as staff analysis, opinion, and news promoting a positive, non-partisan vision of U.S. foreign policy.