Indictments of arms contractors for corruption and malfeasance are not uncommon, but recently revealed cases of illegal conduct by RTX (formerly Raytheon) are extraordinary even by the relatively lax standards of the defense industry.
To incur these fines, RTX participated in price gouging on Pentagon contracts, bribing officials in Qatar, and sharing sensitive information with China.
Apparently treasonous behavior can be bought off.
Bribery as blatant as passing along bags of cash, as happened in a number of cases in the 1960s and 1970s, is no longer prevalent. Now bribes are hidden amongst business deals. For example, a precondition of most major U.S. arms sales is the creation of an “offset” or kickback agreement. Basically, if a country spends billions of dollars on a U.S.-supplied weapon system, the company making the sale is expected to give something back to the purchasing country.
A basic truth in Washington is that almost every single new weapon system ends up costing significantly more than the one it is replacing.
As the cost of weapons increases, the number of systems produced decreases. That’s how the United States ended up with only 21 B-2s, 187 F-22s, and three Zumwalt-class destroyers, rather than the 132, 750, and 32 respectively the military initially promised. This phenomenon creates what is known as the Defense Death Spiral, when the unit cost of new weapons outrace defense budgets.
The Death Spiral is one of the main Pentagon Pathologies. The American people devote ever greater resources to their defense while receiving less and less in return. The Air Force had 10,387 aircraft in 1975 when the Military Reformers began their work in earnest. Today the Air Force has 5,288. The Navy had 559 active ships in 1975. Today the fleet has only 296. The Pentagon’s base budget is more than 60% higher today than it was in 1975, when adjusted for inflation.
Why some might believe our government is a corporatocracy. I do.