This development will probably not go unnoticed in other countries where Americans are also unpopular occupiers. For example, the Ecuadoreans have told us to leave Manta Air Base. Of course, they have their pride to consider, not to speak of the fact that they don’t like American soldiers mucking about in Colombia and Peru. Nonetheless, they could probably use a spot more money.
And what about the Japanese who, for more than fifty-seven years, have been paying big bucks to host American bases on their soil? Recently, they reached a deal with Washington to move some American Marines from bases on Okinawa to the U.S. territory of Guam. In the process, however, they were forced to shell out not only for the cost of the Marines’ removal, but also to build new facilities on Guam for their arrival. Is it possible that they will now take a cue from the government of Kyrgyzstan and just tell the Americans to get out and pay for it themselves? Or might they at least stop funding the same American military personnel who regularly rape Japanese women (at the rate of about two per month) and make life miserable for whoever lives near the thirty-eight U.S. bases on Okinawa? This is certainly what the Okinawans have been hoping and praying for ever since we arrived in 1945.
In fact, I have a suggestion for other countries that are getting a bit weary of the American military presence on their soiclass="underline" cash in now, before it’s too late. Either up the ante or tell the Americans to go home. I encourage this behavior because I’m convinced that the U.S. Empire of Bases will soon enough bankrupt our country, and so—on the analogy of a financial bubble or a pyramid scheme—if you’re an investor, it’s better to get your money out while you still can.
This is, of course, something that has occurred to the Chinese and other financiers of the American national debt. Only they’re cashing in quietly and slowly in order not to tank the dollar while they’re still holding on to such a bundle of them. Make no mistake, though: whether we’re being bled rapidly or slowly, we are bleeding; and hanging on to our military empire and all the bases that go with it will ultimately spell the end of the United States as we know it.
Count on this: future generations of Americans traveling abroad decades from now won’t find the landscape dotted with near-billion-dollar “embassies.”
PART IV
THE PENTAGON TAKES US DOWN
11
GOING BANKRUPT
January 22, 2008
The military adventurers of the Bush administration had much in common with the corporate leaders of the defunct energy company Enron. Both groups of men thought that they were “the smartest guys in the room,” the title of Alex Gibney’s prizewinning film on what went wrong at Enron. The neoconservatives in the White House and the Pentagon outsmarted themselves. They failed even to address the problem of how to finance their schemes of imperialist wars and global domination.
As a result, going into 2008, the United States found itself in the anomalous position of being unable to pay for its own elevated living standards or its wasteful, overly large military establishment. Its government no longer even attempted to reduce the ruinous expenses of maintaining huge standing armies, replacing the equipment that seven years of wars had destroyed or worn out, or preparing for a war in outer space against unknown adversaries. Instead, the Bush administration put off these costs for future generations to pay—or repudiate. This utter fiscal irresponsibility was disguised through many manipulative financial schemes (such as causing poorer countries to lend us unprecedented sums of money), but the time of reckoning is fast approaching.
There are three broad aspects to our debt crisis. First, we are spending insane amounts of money on “defense” projects that bear no relationship to the national security of the United States. Simultaneously, we are keeping the income tax burdens on the richest segments of the American population at strikingly low levels.
Second, we continue to believe that we can compensate for the accelerating erosion of our manufacturing base and our loss of jobs to foreign countries through massive military expenditures—so-called military Keynesianism. By “military Keynesianism,” I mean the mistaken belief that public policies focused on frequent wars, huge expenditures on weapons and munitions, and large standing armies can indefinitely sustain a wealthy capitalist economy. The opposite is actually true.
Third, in our devotion to militarism (despite our limited resources), we are failing to invest in our social infrastructure and other requirements for the long-term health of our country. These are what economists call opportunity costs, things not done because we spent our money on something else. Our public education system has deteriorated alarmingly. We have failed to provide health care to all our citizens and neglected our responsibilities as the world’s number one polluter. Most important, we have lost our competitiveness as a manufacturer for civilian needs—an infinitely more efficient use of scarce resources than arms manufacturing. Let me discuss each of these.
THE CURRENT FISCAL DISASTER
It is virtually impossible to overstate the profligacy of what our government spends on the military. The Department of Defense’s planned expenditures for fiscal year 2008 were larger than all other nations’ military budgets combined. The supplementary budget to pay for the wars in Iraq and Afghanistan, not part of the official defense budget, was itself larger than the combined military budgets of Russia and China. Defense-related spending for fiscal 2008 exceeded $1 trillion for the first time in history. The United States has become the largest single salesman of arms and munitions to other nations. Leaving out of account the two ongoing wars, defense spending has doubled since the mid-1990s. The defense budget for fiscal 2008 was the largest since World War II.
Before we try to break down and analyze this gargantuan sum, there is one important caveat. Figures on defense spending are notoriously unreliable. The numbers released by the Congressional Reference Service and the Congressional Budget Office do not agree with each other. Robert Higgs, senior fellow for political economy at the Independent Institute, says, “A well-founded rule of thumb is to take the Pentagon’s (always well publicized) basic budget total and double it.” Even a cursory reading of newspaper articles about the Department of Defense will turn up major differences in statistics about its expenses. Some 30 to 40 percent of the defense budget is “black,” meaning that these sections contain hidden expenditures for classified projects. There is no possible way to know what they include or whether their total amounts are accurate.
There are many reasons for this budgetary sleight of hand—including a desire for secrecy on the part of the president, the secretary of defense, and the military-industrial complex—but the chief one is that members of Congress, who profit enormously from defense jobs and pork-barrel projects in their districts, have a political interest in supporting the Department of Defense. In 1996, in an attempt to bring accounting standards within the executive branch somewhat closer to those of the civilian economy, Congress passed the Federal Financial Management Improvement Act. It required all federal agencies to hire outside auditors to review their books and release the results to the public. Neither the Department of Defense nor the Department of Homeland Security has ever complied. Congress has complained but has not penalized either department for ignoring the law. The result is that all numbers released by the Pentagon should be regarded as suspect.