Restoring Freedom's Forge: American Innovation Unleashed , December 19 , 2024
Restoring Freedom's Forge: American Innovation Unleashed , December 19 , 2024
From the report: “The Federal Government is hobbled by bloat, bureaucracy, and inefficiency that is undermining the economic and military strength of the United States. Interest payments on the debt are approaching $1.2 trillion in 2024 compared to a topline defense budget of $850 billion. As a share of federal spending, the defense budget has fallen from nearly 60 percent to just 10 percent since the 1950s. While we must prioritize our national security, and I believe investing five percent of gross domestic product is a crucial goal, the Department of Defense (DOD) must contribute to a larger effort that will drive efficiency into every aspect of our government. This report and associated bill language will address the efficiency of defense programs, lending credence to the idea that a larger defense budget will be money well spent and a catalyst for the reindustrialization of America.
Critics of current defense acquisition practices often suggest that eliminating price gouging will free significant funds for real security needs. Many have cited famous examples: the $600 hammer or the 8,000 percent markup on a C-17 soap dispenser. On both, the story is more complicated than price gouging. Accountants disproportionately spread overhead costs across various line items, giving the $600 hammer that eye-popping tag. The C-17 soap dispenser contained unique Air Force requirements for decompression, shock, acceleration, and flammability.
Unfortunately, much of the Pentagon’s business inefficiencies do not stem from anything as straightforward as price gouging. The problems are fundamental and are interconnected. DOD operates non-commercial business systems, requires unreasonable qualifications, orders at low production volumes, and lacks leverage on sole source suppliers.”
Authors - Wicker, RogerRelated Resources
