Tuesday, August 2, 2022

A Marvelous Explanation of Defense Procurement Economics

I have mentioned this guy before.  He is a defense procurement specialist from somewhere Down Under (Aussie or Kiwi), and this video explains why comparing dollars spent on defense spending by nation understates how much the U.S. taxpayers get for that pile of money.  There are economic multiplier effects (manufacturing here creates taxable corporate income, personal income, capital gains, and lots of high-paying jobs.  

Then he explains why so many nations buy American weapon systems: why our scale of domestic production and leading-edge technology makes other nations' domestic production too costly.  I notice that when he discusses scale of production advantages he often includes World War II and modern production lines as a subtle reminder that we are really good at some things, still.  Like building the best fighter aircraft in the world.  Not cheap but as the Ukraine War is showing, cheap is not enough.

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