Category: Economy (Page 4 of 14)

When Barack Obama kept Robert Gates as Defense Secretary, most liberals were disappointed, and the news media focused on how this might impact Obama’s decisions regarding the wars in Iraq and Afghanistan.

While those issues are certainly important, Obama and Gates will be embarking on a mission to radically change the way the United States purchases military equipment.

But if you are a defense contractor who has enjoyed a decade of bottomless Pentagon funding, it was Gates’ comments about a struggle much closer to home that are keeping you up at night. “The spigot of defense spending that opened on 9/11 is closing,” he said. “With two major campaigns ongoing, the economic crisis and resulting budget pressures will force hard choices on this department.”

Gates, the U.S.’s 22nd Defense Secretary, has declared a low-key war against the military services and the way they develop and buy the weapons they use to defend the nation. Up until now, he has done that mostly by jawboning: The U.S. can’t “eliminate national-security risks through higher defense budgets, to do everything and buy everything,” Gates says in the latest issue of Foreign Affairs. That futile quest has led to weapons that “have grown ever more baroque, have become ever more costly, are taking longer to build and are being fielded in ever dwindling quantities.”

But his war of words is about to become very real. As he prepares a budget for next year, Gates must decide the fate of a number of fantastically expensive weapons programs the military services say they need. He can’t fund them all–and might be wise to take a knife to them all. In this, Gates has little choice: the military’s annual budget has finished growing, and the billions it once imagined it might spend on future weapons have evaporated. So cuts–and big ones–are coming, and Gates will be the man who makes them.

Though Gates was hired by George W. Bush to clean up the mismanaged wars in Iraq and Afghanistan, Gates’ greatest legacy may come in what he calls a “strategic reshaping” that better outfits the U.S. military to wage coming wars. Future weapons buys must “be driven more by the actual capabilities of potential adversaries,” Gates told Congress a few weeks ago, “and less by what is technologically feasible given unlimited time and resources.” Pentagon procurement, he said, is plagued by a “risk-averse culture, a litigious process, parochial interests, excessive and changing requirements, budget churn and instability and sometimes adversarial relationships within the Department of Defense.”

With the release today of Barack Obama’s budget outline, we’re seeing that Obama and Gates are serious about these changes. You’re also hearing Obama talk about how we can’t afford any more “Cold War” weapons systems.

The articles linked above is worth a read. It discusses specific weapons systems, and the stunning costs associated with systems that we no longer need and may be obsolete in a world where inexpensive drones can do the job of piloted planes.

This will not be an easy fight. The problem is that Congress often overrides the needs and requests of the military. Many conservative Senators will scream about wasteful spending, but then they will defend grossly expensive weapons systems if it affects jobs in their districts. Democrats do the same thing.

Based on the “Cold War” rhetoric, it looks like Obama is ready for a fight. He should bring along enough Democrats, especially if they have to choose between health care and these weapons systems.