The following introduction and essay are by two of my close friends and mentors, Franklin “Chuck” Spinney and Pierre Sprey. It talks about how we are not innovating, and continue to pour money down a black hole.
President Obama says that restoring America’s competitiveness is one of his top priorities. Yet under his watch, deindustrialization, financialization, and globalization continue without interruption. Many advocates of defense spending argue that spinoffs from the Pentagon’s R&D and high tech engineering practices are keys to reinvigorating America’s manufacturing economy. For whatever reasons, Mr. Obama shows no intention of reining in defense spending by anything more than a cosmetic amount, even though the defense budget is higher now that at any time since the end of WWII (after removing the cumulative effect of 60 years of inflation), and despite the fact that the United States is spending about as much on defense as the rest of the world combined. Let us hope Obama has not bought into the bogus arguments that spending more on defense will be good for restoring competitiveness in the manufacturing sector of the American economy.