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general dynamics
The Rise of the Drone-Industrial Complex
A new force — Silicon Valley startup culture — has entered the fray, and the military-industrial complex equation is suddenly changing dramatically.
Feb 11, 2025
Last April, in a move generating scant media attention, the Air Force announced that it had chosen two little-known drone manufacturers — Anduril Industries of Costa Mesa, California, and General Atomics of San Diego — to build prototype versions of its proposed Collaborative Combat Aircraft (CCA), a future unmanned plane intended to accompany piloted aircraft on high-risk combat missions. The lack of coverage was surprising, given that the Air Force expects to acquire at least 1,000 CCAs over the coming decade at around $30 million each, making this one of the Pentagon’s costliest new projects. But consider that the least of what the media failed to note. In winning the CCA contract, Anduril and General Atomics beat out three of the country’s largest and most powerful defense contractors — Boeing, Lockheed Martin, and Northrop Grumman — posing a severe threat to the continued dominance of the existing military-industrial complex, or MIC.
For decades, a handful of giant firms like those three have garnered the lion’s share of Pentagon arms contracts, producing the same planes, ships, and missiles year after year while generating huge profits for their owners. But an assortment of new firms, born in Silicon Valley or incorporating its disruptive ethos, have begun to challenge the older ones for access to lucrative Pentagon awards. In the process, something groundbreaking, though barely covered in the mainstream media, is underway: a new MIC is being born, one that potentially will have very different goals and profit-takers than the existing one. How the inevitable battles between the old and the new MICs play out can’t be foreseen, but count on one thing: they are sure to generate significant political turbulence in the years to come.
The very notion of a “military-industrial complex” linking giant defense contractors to powerful figures in Congress and the military was introduced on January 17, 1961, by President Dwight D. Eisenhower in his farewell address to Congress and the American people. In that Cold War moment, in response to powerful foreign threats, he noted that “we have been compelled to create a permanent armaments industry of vast proportions.” Nevertheless, he added, using the phrase for the first time, “we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”
Ever since, debate over the MIC’s accumulating power has roiled American politics. A number of politicians and prominent public figures have portrayed U.S. entry into a catastrophic series of foreign wars — in Vietnam, Cambodia, Laos, Iraq, Afghanistan, and elsewhere — as a consequence of that complex’s undue influence on policymaking. No such claims and complaints, however, have ever succeeded in loosening the MIC’s iron grip on Pentagon arms procurement. This year’s record defense budget of approximately $850 billion includes $143.2 billion for research and development and another $167.5 billion for the procurement of weaponry. That $311 billion, most of which will be funneled to those giant defense firms, exceeds the total amount spent on defense by every other country on Earth.
Over time, the competition for billion-dollar Pentagon contracts has led to a winnowing of the MIC ecosystem, resulting in the dominance of a few major industrial behemoths. In 2024, just five companies — Lockheed Martin (with $64.7 billion in defense revenues), RTX (formerly Raytheon, with $40.6 billion), Northrop Grumman ($35.2 billion), General Dynamics ($33.7 billion), and Boeing ($32.7 billion) — claimed the vast bulk of Pentagon contracts. (Anduril and General Atomics didn’t even appear on a list of the top 100 contract recipients.)
Typically, these companies are the lead, or “prime,” contractors for major weapons systems that the Pentagon keeps buying year after year. Lockheed Martin, for example, is the prime contractor for the Air Force’s top-priority F-35 stealth fighter (a plane that has often proved distinctly disappointing in operation); Northrop Grumman is building the B-21 stealth bomber; Boeing produces the F-15EX combat jet; and General Dynamics makes the Navy’s Los Angeles-class attack submarines. “Big-ticket” items like these are usually purchased in substantial numbers over many years, ensuring steady profits for their producers. When the initial buys of such systems seem to be nearing completion, their producers usually generate new or upgraded versions of the same weapons, while employing their powerful lobbying arms in Washington to convince Congress to fund the new designs.
Over the years, non-governmental organizations like the National Priorities Project and the Friends Committee on National Legislation have heroically tried to persuade lawmakers to resist the MIC’s lobbying efforts and reduce military spending, but without noticeable success. Now, however, a new force — Silicon Valley startup culture — has entered the fray, and the military-industrial complex equation is suddenly changing dramatically.
Along Came Anduril
Consider Anduril Industries, one of two under-the-radar companies that left three MIC heavyweights in the dust last April by winning the contract to build a prototype of the Collaborative Combat Aircraft. Anduril (named after the sword carried by Aragorn in J.R.R. Tolkien’s The Lord of the Rings) was founded in 2017 by Palmer Luckey, a virtual-reality headset designer, with the goal of incorporating artificial intelligence into novel weapons systems. He was supported in that effort by prominent Silicon Valley investors, including Peter Thiel of the Founders Fund and the head of another defense-oriented startup, Palantir (a name also derived from The Lord of the Rings).
From the start, Luckey and his associates sought to shoulder aside traditional defense contractors to make room for their high-tech startups. Those two companies and other new-fledged tech firms often found themselves frozen out of major Pentagon contracts that had long been written to favor the MIC giants with their bevies of lawyers and mastery of government paperwork. In 2016, Palantir even sued the U.S. Army for refusing to consider it for a large data-processing contract and later prevailed in court, opening the door for future Department of Defense awards.
In addition to its aggressive legal stance, Anduril has also gained notoriety thanks to the outspokenness of its founder, Palmer Luckey. Whereas other corporate leaders were usually restrained in their language when discussing Department of Defense operations, Luckey openly criticized the Pentagon’s inbred preference for working with traditional defense contractors at the expense of investments in the advanced technologies he believes are needed to overpower China and Russia in some future conflict.
Such technology, he insisted, was only available from the commercial tech industry. “The largest defense contractors are staffed with patriots who nevertheless do not have the software expertise or business model to build the technology we need,” Luckey and his top associates claimed in their 2022 Mission Document. “These companies work slowly, while the best [software] engineers relish working at speed. And the software engineering talent who can build faster than our adversaries resides in the commercial sector, not at large defense primes.”
To overcome obstacles to military modernization, Luckey argued, the government needed to loosen its contracting rules and make it easier for defense startups and software companies to do business with the Pentagon. “We need defense companies that are fast. That won’t happen simply by wishing it to be so: it will only happen if companies are incentivized to move” by far more permissive Pentagon policies.
Buttressed by such arguments, as well as the influence of key figures like Thiel, Anduril began to secure modest but strategic contracts from the military and the Department of Homeland Security. In 2019, it received a small Marine Corps contract to install AI-enabled perimeter surveillance systems at bases in Japan and the United States. A year later, it won a five-year, $25 million contract to build surveillance towers on the U.S.-Mexican border for Customs and Border Protection (CBP). In September 2020, it also received a $36 million CBP contract to build additional sentry towers along that border.
After that, bigger awards began to roll in. In February 2023, the Department of Defense started buying Anduril’s Altius-600 surveillance/attack drone for delivery to the Ukrainian military and, last September, the Army announced that it would purchase its Ghost-X drone for battlefield surveillance operations. Anduril is also now one of four companies selected by the Air Force to develop prototypes for its proposed Enterprise Test Vehicle, a medium-sized drone intended to launch salvos of smaller surveillance and attack drones.
Anduril’s success in winning ever-larger Pentagon contracts has attracted the interest of wealthy investors looking for opportunities to profit from the expected growth of defense-oriented startups. In July 2020, it received fresh investments of $200 million from Thiel’s Founders Fund and prominent Silicon Valley investor Andreessen Horowitz, raising the company’s valuation to nearly $2 billion. A year later, Anduril obtained another $450 million from those and other venture capital firms, bringing its estimated valuation to $4.5 billion (double what it had been in 2020). More finance capital has flowed into Anduril since then, spearheading a major drive by private investors to fuel the rise of defense startups — and profit from their growth as it materializes.
The Replicator Initiative
Along with its success in attracting big defense contracts and capital infusions, Anduril has succeeded in convincing many senior Pentagon officials of the need to reform the department’s contracting operations so as to make more room for defense startups and tech firms. On August 28, 2023, Deputy Secretary of Defense Kathleen Hicks, then the department’s second-highest official, announced the inauguration of the “Replicator” initiative, designed to speed the delivery of advanced weaponry to the armed forces.
“[Our] budgeting and bureaucratic processes are slow, cumbersome, and byzantine,” she acknowledged. To overcome such obstacles, she indicated, the Replicator initiative would cut through red tape and award contracts directly to startups for the rapid development and delivery of cutting-edge weaponry. “Our goal,” she declared, “is to seed, spark, and stoke the flames of innovation.”
As Hicks suggested, Replicator contracts would indeed be awarded in successive batches, or “tranches.” The first tranche, announced last May, included AeroVironment Switchblade 600 kamikaze drones (called that because they are supposed to crash into their intended targets, exploding on contact). Anduril was a triple winner in the second tranche, announced on November 13th. According to the Department of Defense, that batch included funding for the Army’s purchase of Ghost-X surveillance drones, the Marine Corps’ acquisition of Altius-600 kamikaze drones, and development of the Air Force’s Enterprise Test Vehicle, of which Anduril is one of four participating vendors.
Just as important, perhaps, was Hicks’ embrace of Palmer Luckey’s blueprint for reforming Pentagon purchasing. “The Replicator initiative is demonstrably reducing barriers to innovation, and delivering capabilities to warfighters at a rapid pace,” she affirmed in November. “We are creating opportunities for a broad range of traditional and nontraditional defense and technology companies… and we are building the capability to do that again and again.”
Enter the Trumpians
Kathleen Hicks stepped down as deputy secretary of defense on January 20th when Donald Trump reoccupied the White House, as did many of her top aides. Exactly how the incoming administration will address the issue of military procurement remains to be seen, but many in Trump’s inner circle, including Elon Musk and Vice President J.D. Vance, have strong ties to Silicon Valley and so are likely to favor Replicator-like policies.
Pete Hegseth, the former Fox News host who recently won confirmation as secretary of defense, has no background in weapons development and has said little about the topic. However, Trump’s choice as deputy secretary (and Hick’s replacement) is billionaire investor Stephen A. Feinberg who, as chief investment officer of Cerberus Capital Management, acquired the military startup Stratolaunch — suggesting that he might favor extending programs like Replicator.
In a sense, the Trump moment will fit past Washington patterns when it comes to the Pentagon in that the president and his Republican allies in Congress will undoubtedly push for a massive increase in military spending, despite the fact that the military budget is already at a staggering all-time high. Every arms producer is likely to profit from such a move, whether traditional prime contractors or Silicon Valley startups. If, however, defense spending is kept at current levels — in order to finance the tax cuts and other costly measures favored by Trump and the Republicans — fierce competition between the two versions of the military-industrial complex could easily arise again. That, in turn, might trigger divisions within Trump’s inner circle, pitting loyalists to the old MIC against adherents to the new one.
Most Republican lawmakers, who generally rely on contributions from the old MIC companies to finance their campaigns, are bound to support the major prime contractors in such a rivalry. But two of Trump’s key advisers, J.D. Vance and Elon Musk, could push him in the opposite direction. Vance, a former Silicon Valley functionary who reportedly became Trump’s running mate only after heavy lobbying by Peter Thiel and other tech billionaires, is likely to be encouraged by his former allies to steer more Pentagon contracts to Anduril, Palantir, and related companies. And that would hardly be surprising, since Vance’s private venture fund, Narya Capital (yes, another name derived from The Lord of the Rings!), has invested in Anduril and other military/space ventures.
Named by Trump to direct the as-yet-to-be-established Department of Government Efficiency, Elon Musk, like Anduril’s Palmer Luckey, fought the Department of Defense to obtain contracts for one of his companies, SpaceX, and has expressed deep contempt for the Pentagon’s traditional way of doing things. In particular, he has denigrated the costly, generally ill-performing Lockheed-made F-35 jet fighter at a time when AI-governed drones are becoming ever more capable. Despite that progress, as he wrote on X, the social media platform he now owns, “some idiots are still building manned fighter jets like the F-35.” In a subsequent post, he added that “manned fighter jets are obsolete in the age of drones anyway.”
His critique of the F-35 ruffled feathers at the Air Force and caused Lockheed’s stock to fall by more than 3%. “We are committed to delivering the world’s most advanced aircraft — the F-35 — and its unrivaled capabilities with the government and our industry partners,” Lockheed declared in response to Musk’s tweets. Over at the Pentagon, Air Force Secretary Frank Kendall had this to say: “I have a lot of respect for Elon Musk as an engineer. He’s not a warfighter, and he needs to learn a little bit more about the business, I think, before he makes such grand announcements as he did.” He then added, “I don’t see F-35 being replaced. We should continue to buy it, and we also should continue to upgrade it.”
President Trump has yet to indicate his stance on the F-35 or other high-priced items in the Pentagon’s budget lineup. He may (or may not) call for a slowdown in purchases of that plane and seek greater investment in other projects. Still, the divide exposed by Musk — between costly manned weapons made by traditional defense contractors and more affordable unmanned systems made by the likes of Anduril, General Atomics, and AeroVironment — is bound to widen in the years to come as the new version of the military-industrial complex only grows in wealth and power. How the old MIC will address such a threat to its primacy remains to be seen, but multibillion-dollar weapons companies are not likely to step aside without a fight. And that fight will likely divide the Trumpian universe.
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As Bombs Drop, Weapons Industry Stocks Take Off
One wonders how the executives of these companies feel about their products being used for mass slaughter in Gaza and dangerous escalation in Lebanon.
Oct 04, 2024
It’s a sad but familiar spectacle — as people die at the hands of U.S. weapons in a faraway war zone, the stock prices of arms makers like Raytheon and Lockheed Martin soar. A piece posted yesterday at Forbes tells the tale: “Defense Stocks Hit All-Time Highs Amidst Mideast Escalation.”
One wonders how the executives of these companies feel about their products being used for mass slaughter in Gaza and dangerous escalation in Lebanon. For the most part they’re not talking, although they are glad to occasionally inform their investors that “turbulence” and “instability” means their products will be needed in significant quantities by our “allies.”
And, not unlike the Biden administration, they tend to couch their rhetoric in terms of a “right to self-defense.” They act as if Israel’s killing of 40,000 people and displacing millions more — the vast majority of whom have absolutely nothing to do with Hamas, nor any way to influence their behavior — can somehow be white washed by calling it a defensive operation.
No one who steps outside the bankrupt world of official Washington to look at the impacts on actual human beings in Gaza, the West Bank, and Lebanon can take the notion that U.S. weapons are being used for defense in the current Middle East war seriously.
Peter Thiel and his colleagues at Palantir are an exception to the closed mouthed approach of executives at the larger weapons companies. When asked how he felt about his company’s technology to pick targets in Gaza, he said “I'm not on top of all the details of what's going on in Israel, because my bias is to defer to Israel. It's not for us to second-guess every, everything.” And Palantir CEO Alex Karp flew the entire company board to Israel earlier this year to show solidarity with Israel’s war effort in Gaza.
At least Palantir’s leaders are honest and open about where they stand. Leaders of firms like Lockheed Martin, Raytheon, General Dynamics, and Boeing that supply the weapons that have laid waste to Gaza and are now pounding Lebanon prefer to hide behind euphemisms about promoting defense, deterrence, and stability, and assisting allies.
But what about when those allies are engaged in widespread war crimes that prompted the International Court of Justice to say that Israel’s war on Gaza could plausibly be considered a genocide? Is it morally acceptable to just cash the checks and avert one’s eyes, or do the companies profiting from this grotesque humanitarian disaster have a moral responsibility for how their products are being used?
A few years ago, during the height of Saudi Arabia’s brutal invasion of Yemen — enabled by billions of dollars of U.S.- and European-origin weapons — Amnesty International probed this very point. In a report entitled “Outsourcing Responsibility,”the group provided the findings of a survey it had done of 22 arms companies, asking them “to explain how they meet their responsibilities to respect human rights under internationally recognized standards.”
Amnesty noted that "many of the companies investigated supply arms to countries accused of committing war crimes and serious human rights violations, such as Saudi Arabia and the UAE.” None of the companies queried provided evidence that they were doing any sort of due diligence to ensure that their weapons weren’t being used to commit war crimes or human rights abuses. Fourteen companies failed to respond at all, and of the eight that did answer Amnesty’s questions gave variations on the theme of “we just do what the government allows.”
This casts influential arms makers as innocent bystanders who await government edicts before marketing their wares. In fact, weapons manufacturers spend millions year in and year out pressing for weaker human rights strictures and quicker decisionmaking on the sale of arms to foreign clients.
The weapons merchants are right about one thing. It is going to take changes in government policy to stop the obscene trafficking of weapons of war into the world’s killing zones. That will mean breaking the web of influence that ties government policy makers, corporate executives, and many members of Congress to the continued production of weapons on a mass scale. We can’t expect a profit making entity like Lockheed Martin to regulate itself when there are billions to be made fueling conflicts large and small.
Which means the responsibility for ending the killing and the war profiteering it enables falls to the rest of us, from students calling for a ban on arming Israel to union members looking to reduce their dependency on jobs in the weapons sector to anyone who wants a foreign policy driven by what makes us safe, not what makes Palantir and Lockheed Martin rich.
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It’s Time for the US to Kick Its War Habit and Get Mad at MAD
Using the vernacular of the day, perhaps it’s particularly on target to say that our whole country suffers from Militarism Abuse Disorder or (all too appropriately) MAD.
Sep 25, 2024
My name is Frida, and my community is military dependent. (I feel, by the way, like I’m introducing myself at a very strange AA-like meeting with lousy coffee.) As with people who have substance abuse disorders, I’m part of a very large club. After all, there are weapons manufacturers and subcontractors in just about every congressional district in the country, so that members of Congress will never forget whom they are really working for: the military-industrial complex.
Using the vernacular of the day, perhaps it’s particularly on target to say that our whole country suffers from Militarism Abuse Disorder or (all too appropriately) MAD.
I must confess that I don’t like to admit to my military dependency. Who does? In my case, it’s a tough one for a few reasons, the biggest being that I’m an avowed pacifist who believes that war is a crime against humanity, a failure of the imagination, and never (no, not ever) necessary. Along with the rest of my family of five, I live below the taxable income level. That way, we don’t pay into a system that funds war preparations and war-making. We have to be a little creative to make our money stretch further, and we don’t eat out or go to the movies every week. But we don’t ever feel deprived as a result. In essence, I’ve traded career success and workplace achievement for a slightly clearer conscience and time—time to work to end militarism and break our collective addiction!
Those who suffer from Militarism Abuse Disorder can’t even ask the questions, because they’re distracted by the promises of good jobs, nice apartments, and cheap consumer goods that the military-industrial complex is always claiming are right around the corner.
The Peter G. Peterson Foundation estimates that, in 2023, the United States of America spent $142 billion buying weapons systems and another $122 billion on the research and development of future weaponry and other militarized equipment. And keep in mind that those big numbers represent only a small fraction of any Pentagon budget, the latest of which the Pentagon’s proposing to be $849.8 billion for 2025—and that’s just one year (and not all of what passes for “national defense” spending either). A recent analysis by the Costs of War Project at Brown University calculated that, since September 11, 2001, the United States has used an estimated $8 trillion-plus just for its post-9/11 wars. Talk about addiction! It makes me pretty MAD, if I’m being honest with you!
It would be nice to ignore such monstrous numbers and the even bigger implications they suggest, to unfocus my eyes slightly as I regularly drive by the fenced facilities; manicured office parks; and noisy, bustling shipyards that make up the mega-billion-dollar-a-year industry right in my own neighborhood that’s preparing for… well, yes… the end of the world. Instead, I’m trying to be clear-eyed and aware. I’m checking my personal life all the time for compromise or conciliation with militarism: Am I being brainwashed when I find myself cheering for the fighters in that blockbuster movie we splurged on? Am I doing enough to push for a cease-fire in Gaza? Am I showing up with young people in my community who are backing higher salaries for teachers and no more police in schools? And of course, I keep asking myself: How are my daily consumer decisions lining up with my lofty politics?
I don’t always like the answers that come up in response to such questions, but I keep asking them, keep trying, keep pushing. Those who suffer from Militarism Abuse Disorder can’t even ask the questions, because they’re distracted by the promises of good jobs, nice apartments, and cheap consumer goods that the military-industrial complex is always claiming are right around the corner.
But here in my community, they never deliver!
New London: A Profile of Militarism Abuse Disorder
New London is a town of fewer than 28,000 people. The median income here is a little over $46,000—$32,000 less than the state average. We are a very old community. Long part of the fishing and hunting grounds of the Eastern Pequots, Nehantics, Mashantucket Pequot, and Mohegan, the city was founded in the 1600s and incorporated in the late 1700s. You see evidence of our age in the shape of our streets, curbed and meandering, long ago carved out of fields by cows and wagons, and in our architecture—aging industrial buildings, warehouses, and ice houses in the neighborhoods where their workers once lived—now derelict and empty or repurposed as auto repair stores or barber shops.
Sometimes I watch, almost mesmerized by the ferocious energy of all those cars careening up Howard Street on their way to work at General Dynamics. Car after car headed for work at the very break of day. Every workday at about 3:00 pm, they reverse course, a river of steel and plastic rushing and then idling in traffic, trying to get out of town as fast as possible.
As the only nation that has ever used nuclear weapons in war (in 1945) and has tested, perfected, and helped proliferate the technology of ultimate destruction for the last eight decades, the United States should be leading the charge to denuclearize, disarm, and abolish such weaponry.
General Dynamics Electric Boat repairs, services, and manufactures submarines armed with both conventional and nuclear weapons. And it certainly tells you something about our world that the company is in the midst of a major hiring jag, looking to fill thousands of positions in New London, Groton, and coastal Rhode Island to build the Columbia-class submarine, the next generation of nuclear-powered, nuclear-armed subs. Those behemoths of human ingenuity and engineering will cost taxpayers a whopping $132 billion, with each of the 12 new boats clocking in at about $15 billion—and mind you, that’s before anything even goes wrong or the schedule to produce them predictably stretches out and out. The company has already solved one big problem: how to wring maximum profits out of this next generation of planet-obliteration-capable subs. And that’s a problem that isn’t even particularly hard to sort out, because some of those contracts are “cost plus,” meaning the company says what the project costs and then adds a percentage on top of that as profit.
Such a cost-plus business bothers me a lot. I could almost be converted into a hard-nosed militarist if our weapons production industry was a nonprofit set of organizations, run with the kind of shoestring ingenuity that dozens of outfits in New London employ to feed the hungry, house the homeless, and care for the victims of domestic violence.
I break from my traffic-watching fugue on Howard Street to reflect on all that furious effort, all those advanced degrees, all that almost impossible intelligence being poured into making an even better, bigger, faster, sleeker, stealthier weapons-delivery system, capable of carrying and firing conventional and nuclear warheads. Why? We have so many already. And as the only nation that has ever used nuclear weapons in war (in 1945) and has tested, perfected, and helped proliferate the technology of ultimate destruction for the last eight decades, the United States should be leading the charge to denuclearize, disarm, and abolish such weaponry. That, after all, is what’s called for in the Treaty on the Prohibition of Nuclear Weapons.
If we are ever going to break our MAD addiction, one place to start is here on Howard Street with people who make their living working on one tiny component of this incredibly complex system. Economic conversion, moving resources and skills and jobs from the military-industrial complex to civilian sectors, is a big project. And it could indeed begin right here on Howard Street.
You Get What You Pay For
Our small town is also home to the Coast Guard Academy and two private colleges. Add the acreage of those three non-taxpaying institutions to the nearly 30 churches, synagogues, and other houses of worship that enjoy tax-free status here; throw in the dozens of nonprofits that do all the good work and you end up with an awfully small tax base. As a result, the municipal budget leans heavily on commercial taxpayers like General Dynamics Electric Boat, the military-industrial behemoth that moved into 24 acres of prime waterfront real estate in 2009 after it was vacated by the tax scofflaw Pfizer.
General Dynamics, like other military manufacturers, essentially only has one customer to please, the United States government. That makes the cost-plus contracting scheme even more egregious, guaranteeing that, no matter what goes wrong, its profits are always assured. Such a bonkers, counter-capitalist scenario passes all the costs on to American taxpayers and allows the privately held corporation to pocket all the profits, while handing out fat dividends to its shareholders. According to Sahm Capitol, “Over the past three years, General Dynamics’ Earnings Per Share grew by 3.7% and over the past three years, the total shareholder return was 62%.”
Am I to understand that spending money on just about anything else creates more jobs and more economic activity, while not threatening the world with annihilation?
For 2024, General Dynamics Electric Boat is paying taxes on property valued at $90.8 million—almost twice as much as that of the next highest taxpayer in our town. But it is also a bone of contention. The company, which paid CEO Phebe Novakovic $22.5 million in salary and stock awards in 2023, has no trouble taking the City of New London to court when they feel like their property is being overvalued or overtaxed. They win, too, so their property valuations yo-yo year to year when New London has been ordered to repay taxes to General Dynamics. Whether they pay taxes based on $90.8 million in property or $57 million doesn’t really matter to the company. It’s literal pocket change to the Pentagon’s third largest weapons contractor, a company that boasted $42.3 billion in revenue in 2023. But it matters a lot in a place like New London, where the annual budget process routinely shaves jobs from the schools, public works, and the civil service to make the columns all add up.
According to a report by Heidi Garrett-Peltier for the Costs of War Project at Brown University, $1 million of federal spending in the military sector creates 6.9 jobs (5.8 direct jobs and 1.1 in the supply chain). That same $1 million would create 8.4 jobs in the wind energy sector or 9.5 jobs in solar energy. Investing $1 million in energy efficiency retrofits creates 10.6 jobs. Use that $1 million to build streets or highways or tunnels or bridges or to repair schools and it will create “over 40% more jobs than the military, with a total multiplier of 9.8 jobs per $1 million spending.”
Wait, what? Are you telling me that, with their lack of transparency, accountability, and their cost-plus contracts, while building weapons systems for the sole purpose of destruction and wasting a lot of money in the process, the military-industrial complex is a lousy job creator? Am I to understand that spending money on just about anything else creates more jobs and more economic activity, while not threatening the world with annihilation?
As I work on a local level in my small town in Connecticut, I see how municipal policy should prioritize small businesses, mom-and-pop stores made of brick and mortar, over multinational corporations or big business. I see the return on investment from a small business in granular and tangible ways: the grocery store owner who starts each day by picking up garbage in his parking lot, the funeral home that sponsors the Little League team, the woman at the art gallery and frame shop who waters the street flowers, or the self-employed local photographer who serves on the board of the cooperative grocery store.
These businesses don’t employ tens of thousands of people, but they also don’t insist on tax abatements that undermine our local budget or fill our crowded streets with commuters hell-bent on getting away from the office and our town as quickly as possible.
You get what you pay for, right? Garrett-Peltier’s Costs of War report goes on to note that “healthcare spending creates more than twice as many jobs for the same level of spending, while education creates up to nearly three times as many jobs as defense spending… The employment multipliers for these domestic programs are 14.3 for healthcare, 19.2 for primary and secondary education, and 11.2 for higher education; the average figure for education is 15.2 jobs per $1 million spending.”
These are numbers I wish my City Council would commit to memory. In fact, we should all know these numbers by heart, because they counter the dominant narrative that military spending is good for the economy and that good-paying jobs depend on militarism.
The United States is investing trillions of dollars in the military, as well as in weapons contractors like General Dynamics, Boeing, and Lockheed Martin. Every U.S. president in modern history has prioritized the bottom lines of those corporations over a safe and healthy future for the next generation. Consider all of that as just so many symptoms of Militarism Abuse Syndrome. Isn’t it finally time to get really mad at MAD? Let’s kick the habit and get clean!
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