Sen. Bernie Sanders on Thursday said "there's a name for" the billions of dollars in stock buybacks and dividends that major U.S. defense contractors have doled out to their shareholders while taking taxpayer money, and it's this: "war profiteering."
Sanders, the independent from Vermont who chairs the Health, Education, Labor, and Pensions Committee in the Senate, took aim at Lockheed Martin, General Dynamics, and RTX—formerly known as Raytheon—for taking in $255 billion in public funds since Russia invaded Ukraine in 2022, only to reward shareholders and executives with $52 billion via the benefits of stock buybacks and dividends.
"The greed of these companies is fleecing the American taxpayer and killing Ukrainians," said Sanders. "Congress must investigate."
Sanders reiterated his strong support for backing Ukraine as it continues to defend against Russia's incursion, but said he does not support military contractors "making huge profits on the weapons systems they produce."
With the companies increasing prices for weapons systems and equipment while showering their shareholders with payouts, he said "our taxpayers pay more than they should, and Ukraine receives less weaponry than it needs."
Following the consolidation of dozens of defense contractors into just five companies in the 1990s, the cost of weapons and supplies have risen dramatically. As CBS News reported last year, a stinger missile costs more than $400,000 at Raytheon, now the weapon's sole supplier—a seven-fold increase over its cost in 1991, even accounting for inflation.
Sen. Elizabeth Warren (D-Mass.) noted when introducing the Stop Price Gouging the Military Act in 2022 that defense contractors "regularly charge the military excessive prices, including $71 for a pin that should have cost less than a nickel and $80 for a drain pipe segment that should have cost $1."
Sanders said the companies are price gouging "all while saying they need emergency supplemental funding to ramp up production for the war effort."
"I strongly support getting the Ukrainians what they need to defend their country," said Sanders. "What I do NOT support is the war profiteering of major defense contractors."
