Once more, my friend Bill Foster has posted something to his Substack that I think deserves a wider audience.
Sophistry and Obfuscation
Why the Actual Defense Budget is More Than Double What You Think It Is
There has been a lot of talk lately about U.S. defense spending reaching one trillion dollars under the big, beautiful bill. Unfortunately, the amount we spend on defense is routinely underestimated by liberal and conservative sources of like. In recent months, even folks I like and respect and generally find truthful like NPR, Ezra Klein and Jon Stewart have gotten it wrong.
The number you will hear most often is the Department of Defense base budget. In Fiscal Year (FY) 2024 that was $826 billion. Nuclear weapons are not included in the defense budget as they are under the Department of Energy. If you add that $47 billion, you get $874 billion. You will see this number quite often. The big, beautiful building adds $150 billion to that figure.
In the aftermath of 9-11, the Bush administration pulled one of the biggest bait and switches in history with the creation of the Department of Homeland Security. Now, I admit that it’s an effective trick. Is Homeland Security defense spending? I would argue that it is right there in the name. What could be more basic to the defense of our nation than the security of the homeland and the protection of our borders? If it makes everyone feel better, we can talk about security spending instead of defense spending, but it seems obvious to me that it should be included. That figure is $112.4 billion in FY 24, up from $30 billion in 2004, its first full year of operation. Under the big, beautiful bill, DHS spending would increase $43.8 billion in 2026.
The Department of Veterans Affairs is not included in the DoD budget. Obviously, caring for those who served in the military is part of the cost of defense and to not include this in the budget is sophistry at best and more probably deliberate deception. The VA budget for FY 2024 was $325 billion. FY 2026 is unclear, but it looks like $369.3 billion. Military retirement pay is in the exact same situation, not included for the purposes of deliberate obfuscation. In Fy 2024, pensions for retired military members cost $260 billion. To be clear, I received 1.015384615384615e-7% of that money.
There are also significant costs for International Affairs throughout the budget that are actually defense spending. These include additional war funding because none of the obscene amounts spent so far include fighting a war. It also includes foreign aid, assistance to foreign militaries, embassy guards, etc. This includes programs like Foreign Military Financing ($3.3 billion), aid to Ukraine (about $107 billion so far), and another $42.36 billion, which includes paying for genocide in Israel.
Finally, we must remember we are issuing Treasury Bills for all this spending, which means we are paying interest on all this spending. This is hard to calculate, but interest on the national debt exceeded defense spending this year as the largest item in the federal budget. Interest is projected to cost $870 billion in FY 2024. The base DoD budget is 13% of the budget. We know now that defense spending is higher than 13%, as that is only the base DoD budget. We want to err on the conservative side, so I’ll use a figure of 20%. That means that $174 billion in the amount of interest on the national debt we pay related to defense spending.
We add all that together and we get:
Defense and DoE nuclear weapons: $1.24 trillion
Homeland Security: $156.2 billion
Veterans’ Affairs: $369.3 billion
Military pensions: $260 billion
International affairs: $150 billion
Interest: $174 billion
Grand Total: $2,349,000,000
This information is difficult to find and parse and this took me awhile. Even for a simple question such as, “what is the FY 2024 VA budget,” I received six different answers (in the same ballpark). You can argue about whether certain things should be included but it is quite clear that the U.S. budget is not $1 trillion but is somewhere far to the north of that and at least double. We should also note that there is credible research done by Stockholm International Peace research Institute that shows that actual spending demonstrated in the National Income and Products Accounts (NIPA) – the database where checks are written – shows that money spent is always much higher than what is budgeted. I chose to omit that analysis in the interest of coming up with a conservative figure that is certainly at the low end of the range of possibilities.
How does this compare to other countries? The official figure for the U.S. is that we spend 3.4% of our GDP on defense but if spending is more than twice the commonly acknowledged level then that means we spend more like 7% of our GDP. That means as a percentage of GDP, we exceed every nation except Israel, Ukraine and Algeria (possibly Russia depending on the figure). We outspend China by over $2 trillion. In fact, this budget is the equal of the next, …. I don’t know. I wanted to say how many countries our budget equals but the list I have only goes to 40. The other 39 countries in the top 40 equal to $1.48 trillion. The United States outspends the 40 highest military budgets in the world, combined, by a trillion dollars. The United States probably spends as much as the rest of the world combined and we outspend any meaningful combination of enemies by at least a factor of four.
Let us look at this spending in comparison to some other U.S. Spending. Social Security, which comes from its own trust fund, is only $1.4 trillion. All health care together is about $900 billion. Total interest is about the same. All “welfare” together is about $650 billion. The point is that defense is talked about as a significant cost, but it is beyond that. It is more than double any other single item in the ten largest costs the U.S. government incurs.
The public relations budget is illustrative of the scale of this spending. The Department of Defense spends only about .5% of its budget on advertising, but that’s enough to fund 5,000 people and an almost billion dollar a year budget, over half of total federal spending on advertising. That includes such things as paying $53 million over four years on patriotic displays at sporting events, paying retired generals to appear on media programs, even inventing a fictional expert during the Cold War (look up Guy Sims Fitch- fascinating). The DoD employees more people in its PR department than the Department of Education has in total. This is a tremendous effort, and it is all aimed at one thing: convincing you that all of this spending is necessary for your freedom and not mere socialism.
I’ve made this argument before, and people get a bit rowdy about it. My point is merely that socialism is government ownership of the means of production. Boeing last year got 36% of its total revenues from the government and it’s the lowest of them. RTX (Raytheon) got 100% of its revenues from militaries, 75% from the U.S. and the rest from foreign militaries, but those are mostly paid for by America. In fact, 90% of our foreign aid is not humanitarian but is a Pentagon jobs program in which we give Egypt or Saudi Arabia money, and they spend it on U.S. weapons. Lockheed Martin gets 73% of its revenue from the U.S. government. General Dynamics 69%. Northrop Grumman 87%. There is no sense in which these are private companies. Yes, they are publicly traded but they are 100% dependent on the government.
At this scale, this is socialism. I am not against that. I am a democratic socialist. I just want my socialism to help educate and feed and provide medical care for normal people. I don’t want inefficient, bloated Pentagon socialism that distributes money to national security consultants and contractors while ordinary folks bleed in America and poor folk all over the world get bombed.
And there it is. The Blue Angels are cool, but they are designed to make you think how cool and awesome they are and not to think of them incinerating a wedding. We spend all these dollars and stimulate our economy but it’s poor, mostly brown, folks who pay the price for it. One of the saddest things I ever heard was a little Afghan kid talking about how she prayed for cloudy days because on sunny days the drones could see you.
Here is a fact. In 21 years in the military, I didn’t do anything for your freedom. We are constantly told that the military is for freedom. But there wasn’t and isn’t one single thing in the Middle East worth the life of my friend or the wounds the others I know suffered. Contrary to the non-stop deluge of “patriotic” nonsense we all see all the time, no one died protecting your freedom. They protected your interests. They protected your economy or your gas or your job, but your freedom? That has not been in danger since the Civil War.
Dwight Eisenhower said this: “Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children ... This is not a way of life at all, in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron.”
It is common at every major event for someone to thank the military without whom the event would not happen, and I wouldn’t have the freedom to write this. Bullshit. Nothing in American history since 1900 has affected American’s freedom, except our own government at times. I am not saying that we should not have engaged in WW II but even in that major event, had we not entered, your freedom was never in danger. That is simply pernicious hyperbole meant to stop you from questioning our spending priorities.
What is real freedom? What does it mean? We are paying heavily for the military we are encouraged today to worship, paying for a military as large as the rest of the world combined. Is true freedom merely existence in a democracy? Or is it access to a job? To health care? To the chance for your family to have a better life than yours? Ask yourself what would give you more freedom, a universal health care system that costs you nothing (you could easily pay for it with cuts in defense) and an educational system that cost you nothing (as most Western European nations have) or a military the size of the next ninety nations combined? Imagine a world in which your health care and your education cost almost nothing. How much freer would you feel with no health insurance or school loans, something that would be easily affordable with a military only as large as 50% of the rest of the world instead of 100%? Every time a government building flies a giant flag or the military holds a parade or flies a jet over a football game, it costs money. It is your money and false patriotism that is designed to keep you from noticing that is not patriotism at all. It is creeping fascism. It makes you feel good and simultaneously suppresses the urge to ask, what does freedom really mean?
Worship of the military is death to a democracy. Washington knew this and that’s why we didn’t even have a standing army until after WW II. Having a military is a regretful necessity and we should begrudge every goddamn dime we spend on it because every dime is a theft from educating our young and preparing our nation for the future. We can have a strong military, but it should be as lean, as mean, and as small as possible to protect our interests. It should be for defending America not for defending the interests of an empire. We should never, ever glorify it but solemnly acknowledge the sacrifices people make and hope for a future where those sacrifices are not necessary. Patriotism is not blind worship of the troops but educating oneself about what our military actually does and asking hard questions about what freedom really means. Many more of our citizens are imprisoned by poverty, by hunger, by a lack of hope and opportunity than were ever threatened by foreign enemies. It is time to get our priorities straight.