gokeefe wrote:Being from Maine I think its worth remembering some things:
First and foremost I have very close personal family and friends who have made some very well paying careers out of producing the nation's weapons systems. I am deployed right now in Afghanistan with some of them and others are back at home. Some work at Bath Iron Works building destroyers. Others worked at General Dynamics in Saco building, of all things, the new .50 cal machine guns. These will replace M2s currently in stock (and in combat use I might add) with serial numbers and production dates that can be traced back to WWII.
There are all kinds of other defense related contracts and jobs in Maine that collectively are the single largest source of employment wages, income and wealth for many of Maine's middle class families. I know others too who work for Sikorsky and fly Black Hawk (UH-60) helicopters for the National Guard. When training in Maine they are available for rescue missions, medical evacuations and any other manner of civil support roles that may come up. Point being military acquisition spending has the same dollar for dollar potential towards economic impact as Amtrak's capital programs. Military operations in some cases also have positive impact (especially training at home....ever seen the lines at the Dunkin' Donuts when a National Guard convoy pulls in?) . . .
First and foremost, I'm talking about the usefulness, or not, of some
things. Not talking about the worth of the
people who patriotically work to make them at our government's request.
Thank you for your service. I respect those who serve the nation. And our families are not so different. Let's see, one cousin rose to Colonel after serving in Afghanistan. Another is there right now, Special Forces. Another is back from his second bid in Afghanistan flying Black Hawks (thanks to those who built them well) after three terms in Iraq and getting shot at in Kosovo. I'm proud of ancestors who fought in every war this country has been in since one was an aide to General Washington. So please, my friend, you don't need to feel so
defensive.
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Point being military acquisition spending has the same dollar for dollar potential towards economic impact as Amtrak's capital programs.
Not really. Spending to procure equipment may have similar employment effects. But you need to take the next step. Amtrak, like the Union Pacific,
uses their capital equipment to try to make money. The Pentagon can't
use its equipment to make money. The buck turns into a tank and it grinds to a halt.
Non-military capital equipment is used to improve the value of other stuff, in Transportation by moving stuff from Over Here to Over There, in Mining by digging valuable ore or energy sources out of the ground, in Refining by changing oil into fuels and chemicals and ore into metals, in Utilities by pumping water into aqueducts or capturing energy from wind, in Manufacturing by using equipment to assemble a ton of steel, aluminum, plastic, fabric, battery acid, rubber, Kevlar, and other stuff into an automobile, which is worth quite a bit more than the unassembled parts, in Construction by building space for offices, retail, schools, etc. Almost all of these things are done by companies trying to make a profit and get a return on their investment.
Military equipment can't be used for anything but military purposes. There's investment, but there's zero return on the investment. How can you use a destroyer, or .50 cal machine guns (legally, I mean
), to make a profit, i.e. to create wealth?
I'll grant that the military is a 2 million-member trade school, teaching computing, flying, mechanical repair, and many other valuable transferrable skills, and
that creates wealth, intellectual capital. Of course, you might use money saved from the military to operate a 2 million-member trade school, without needing many destroyers, machine guns, tanks and armored personnel carriers, Atomic bombs, etc.
As for demand, the government could spend and create demand at Dunkin' Donuts by giving money to the homeless and hungry. It could send out coupons good for the products at Dunkin' Donuts along with the Social Security payments. It could pay people to dig ditches and fill them back up. It could add a $300 bonus to the income tax refunds like it did in 2009.
Seriously,
no disrespect to you, your family, and friends But all those things built at Bath Iron Works, Sikorsky, General Dynamics are useless for making money, i.e. creating wealth. Economically speaking, it is wasted. It could be
invaluable for protecting us from the bad guys who want to kill us and take our nice things. But nobody can
use any of it to make a profit and create more wealth.
I'm glad when people have jobs. This country would have more jobs if we didn't have so many warships, military helicopters, machine guns, fighter planes … That may be a shocking notion, but it's true. If we simply gave away one of those things, how would anybody use it to make money, i.e. create wealth? If we gave away a container ship, or a sightseeing helicopter, a Fedex-type cargo plane, somebody could use it to make money. So if you didn't know how to run that business, you could sell it. Nobody in the civilized world can use weaponry to make money. That F-35 can't haul stuff, or extract or refine it, or assemble or erect stuff to make a profit and create wealth.
People make money building weapons, sure, Then the money sort of dies because the weaponry is completely unproductive, infertile, dare I say. There's no reproduction of value the way there is with equipment that makes stuff or helps to move stuff.
Spending on Amtrak is of two types. Capital investments, like building better-faster-safer right of way and buying new equipment, help Amtrak make more money (or lose less, LOL, the same thing economically speaking). Spending on subsidies for, oh, cut flowers and chocolates or even raises, can create jobs. But at the next step, unlike putting a new locomotive to use, those disposables don't create more wealth.