Showing posts with label CONGRESS. Show all posts
Showing posts with label CONGRESS. Show all posts

Friday, March 1, 2013

THE STORY SO FAR: PART 181

NOT ONLY DO WE SPEND TOO MUCH ON DEFENSE, BUT IN MANY CASES, WE SPEND IT BADLY

FEW HAVE THE GUTS TO SPEAK OUT ABOUT THIS. ONE WHO DID—AND DOES—IS CHUCK SPINNEY

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Thirty years ago a story appeared in Time magazine which rocked the Pentagon—and, in particular—the world of the MICC—the Military Industrial Congressional Complex which President Eisenhower warned us about with such vigor and prescience just before leaving office.

His worst fears were more than justified. We have created a permanent cabal of the military, defense contractors and Congress which has been feeding at the public trough since World War II—while mostly either drawing or losing wars we shouldn’t have been involved in the first place.

Meanwhile, the earning power of most Americans has increased but little since the Seventies—and is now in decline. On important reason is that we have spent truly extraordinary amounts of money on the wrong things—the most recent being an entirely unnecessary war in Iraq. But, even more to the point, whether there be war or peace, we have allowed the MICC to frighten us into spending trillions of dollars for no good reason. Certainly, we need a strong military, but there is a difference between strength and extravagance—between prudence and greed. Currently, greed is in the ascendant to the point where our entire National Security budget—of which the defense budget is only a part—exceeds $1 trillion dollars. In effect, we spend more on defense than the rest of the world put together.

Find the 1983 Time Magazine article here:

http://www.time.com/time/magazine/article/0,9171,953733,00.html

It is well worth reading.

Franklin C. "Chuck" Spinney (born May 2, 1945) is an American former military analyst for the Pentagon who became famous in the early 1980s for what became known as the "Spinney Report", criticizing what he described as the reckless pursuit of costly complex weapon systems by the Pentagon, with disregard to budgetary consequences. Despite attempts by his superiors to bury the controversial report, it eventually was exposed during a United States Senate Budget Committee on Defense hearing, which though scheduled to go unnoticed, made the cover of Time Magazine March 7, 1983.

This is what Time Magazine said about that famous story:

The cover story was written by Walter Isaacson, who has since gone on to write acclaimed biographies of Henry Kissinger, Ben Franklin, Albert Einstein and Steve Jobs. Presidential photographer David Hume Kennerly took the photos of Spinney that graced the cover package. The cover itself was an illustration of Spinney by Burt Silverman, who also [Bizarre Connection Alert!] did the cover art for Jethro Tull’s Aqualung album (you can see the resemblance here).

We don’t always agree with Mr. Spinney, and he hasn’t always been right, but we always find his thinking relevant and intriguing. We’re pleased that he continues to grace Battleland with it regularly, a decade after leaving the Pentagon, when he’s not out sailing.

Read more: http://nation.time.com/2013/02/28/it-was-30-years-ago-today/#ixzz2MJsMddwD

Chuck’s courageous action in giving testimony before Congress—at the risk of his career—did not solve the problem—but it almost certainly had some effect; and sometimes all you can do is slow down a bad situation rather than stop it. That is still well worth doing. If nothing else, you have set change in motion.

Was he fired? Surprisingly, he was not, largely because the powers that be in the Pentagon were terrified of Congressional retribution. Instead—incredibly—he was shunned by the system and left to work on whatever he chose for the rest of his career. He put his time to good use—and any Spinney piece is well worth reading.

I met Chuck in the mid Nineties through a mutual friend and have remained in touch ever since. He is a genuine American hero—with the moral courage to do the right thing—and I’m honored to know him.

We need more like him.

 

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Thursday, February 28, 2013

THE STORY SO FAR: PART 180

THE FINANCIALIZATION OF AMERICA—AND THE DEATH OF THE AMERICAN DREAM

THE FINANCIAL SECTOR’S SHARE OF BUSINESS PROFITS IS NOW 50%

The coverage of issues in this Great Country is a curious business. The information is normally out there—somewhere—but fundamental issues of huge importance all too often do not get either the coverage or the analysis they deserve. Instead the media obsess about the Oscars, or a celebrity murder, or a whole host of other matters which really do not deserve that level of attention. The concept of “The News as Entertainment” has a lot to answer for. Distraction from the issues that really matter is the result.

Are the media deliberately keeping us distracted? Well, I cannot speak for individual journalists—some of whom are excellent—but it is clear that the policies of many of the media are driven by commercial agendas which are not motivated by a desire to advance our best interests. Consider Fox News and the Wall Street Journal. The former is a blatant propaganda machine, and the latter is not a great deal less biased—even though it is clothed in the robes of being a serious and respected journal. Given the track record of the owner, Rupert Murdoch, that is an unconvincing disguise.

An issue of the most profound importance is the financialization of the U.S. Economy—the structuring of the economy is such a way, particularly through legislation and massive financial support, that the financial sector—dominated by the Big Banks--can extract a disproportionate share of profit while contributing only a minimum amount in terms of productive investment, added value, and employment.

The end result is an economy which just doesn’t work too well for most Americans—which is exactly where we are right now. Growth is minimal, unemployment is way too high, high wage jobs are being replaced by low wage jobs, demand is being sucked out of the country, investment in infrastructure is entirely inadequate, business investment is far from what it needs to be, and Wall Street is driven almost entirely by speculation rather than acting as a conduit for productive investment.

Evan Soltas has just written a fascinating blog on the share of profits now going to the financial sector. I commend his observations to you. Let me quote an extract:

But most of it is a huge increase in the profit per man-hour worked in the financial industry. Making some rough approximations about the financial industry's share of payroll employment, I can estimate that the average hour worked in the financial industry generates nearly 30 times the average per-man-hour profit in the rest of the economy. That's up from six times the average in 1964.

The dominance of the U.S. economy by the financial sector is a systemic problem of such magnitude that it constitutes an existential threat to the future of this country. Yet most of us are not even aware that such a problem exists.

Remedial action could and should be taken by Congress—but who owns Congress? Why, Big Money, of course.

Well, surely the Federal Reserve can do something—apart from supporting the banks? Then again, perhaps not. After all, let’s appreciate that it is not a government agency (though it masquerades as one). It is owned by the banks.

 

Orso Clip Art