Deck 28 — Defense & Contractor Power

The Military
Industrial Complex

The Business of Forever War

$997B
U.S. Military Spending in 2024 — More Than the Next 9 Countries Combined

Eisenhower Saw It Coming — And Named It

On January 17, 1961, President Dwight D. Eisenhower — a five-star general who commanded Allied forces in World War II — used his farewell address to issue a warning his successors ignored for six decades. He coined the phrase "military-industrial complex" and described the existential threat it posed to democratic governance. An earlier draft of the speech read "military-industrial-congressional complex." That word was cut before delivery. It may have been the most important word of all.

"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals."

President Dwight D. Eisenhower — Farewell Address, January 17, 1961 — National Archives

The system Eisenhower warned about now operates exactly as he feared: a self-reinforcing triangle of the Pentagon, defense contractors, and Congress, where each actor's incentives align to grow defense spending regardless of actual threat levels. In 2025, President Biden invoked the same warning in his own farewell address, cautioning about a "tech-industrial complex." The warning now has two generations of Oval Office backing — and no meaningful institutional response.

38%
U.S. Share of All Global Military Spending
SIPRI 2025 — more than next 9 countries combined
$2,895
U.S. Military Spending Per Capita
Global average: $334. Source: SIPRI / Mappr 2024
52%
Of All Discretionary Federal Spending
Defense consumes more than half the discretionary budget. Source: Concord Coalition 2024
$1.06T
FY2025 Defense Budget (With Supplementals)
First time the U.S. crossed the trillion-dollar threshold. Source: Quincy Institute 2025
Global Military Spending 2024: Top 6 Countries (USD Billions)
Source: SIPRI Military Expenditure Database, April 2025. SIPRI's $997B U.S. figure is broader than CBO's ~$850B discretionary figure because it includes military retirement and some international affairs expenditures. China's $314B may understate actual spending; China does not fully disclose its military budget.

Five Corporations, $771 Billion in Five Years

The defense industry consolidates power in five mega-contractors that collectively received $771 billion in Pentagon contracts from 2020 to 2024 — roughly 54% of the Department of Defense's $4.4 trillion in discretionary spending over that period, per the Quincy Institute for Responsible Statecraft. Over two decades of post-9/11 wars, these same five firms accumulated a cumulative $2 trillion in federal contracts. The U.S. government invested more than twice as much in these five weapons companies as in total diplomacy, development, and humanitarian aid combined ($356 billion).

Contractor Pentagon Contracts 2020–2024 2024 Revenue Lobbying 2024 Stock Gain Since 9/10/2001
Lockheed Martin$313 billion$71 billion (71% federal)$12.7 million+1,163%
RTX Corporation (Raytheon)$145 billion$40.6 billion defense~$11 millionN/A (rebranded)
Boeing Defense$115 billion$32.7 billion defense$14 million
General Dynamics$116 billion$33.7 billion defenseN/A+743%
Northrop Grumman$81 billion$35.2 billion defense$8.8 million+1,056%

Lockheed Martin alone received $313 billion in Pentagon contracts from 2020–2024 — more than the entire State Department budget over the same period. The company returned $6.8 billion to shareholders in a single year through dividends and buybacks while the VA spent $571 million on veteran suicide prevention — less than one-tenth of what Lockheed returned to investors alone.

Quincy Institute for Responsible Statecraft — Profits of War (2024); Fortune 2026; Task & Purpose 2025
Defense Industry Lobbying: Annual Spend 2015–2024 (USD Millions)
Source: OpenSecrets Federal Lobbying — Defense Sector; Taxpayers for Common Sense — Political Footprint of the Military Industry (Oct 2024). Industry-wide 2024 lobbying total: $159 million — roughly $381,000 per day, funding 904 registered lobbyists. Over the past decade: nearly $1.3 billion total in defense lobbying.

The Revolving Door Spins Both Ways

The Project on Government Oversight's 2018 "Brass Parachutes" report remains the most comprehensive study of the Pentagon-to-industry pipeline. Researchers found 380 high-ranking DoD officials and military officers shifted into private-sector defense jobs between 2008 and 2018, creating 645 instances of top contractors hiring former senior government personnel. Nearly 90% became registered lobbyists. One-quarter went directly to the top five contractors.

Named Examples

Mark Esper served as Raytheon's top lobbyist (VP Government Relations) before becoming Army Secretary, then Secretary of Defense.

Patrick Shanahan spent 30 years as a Boeing executive before serving as Acting Secretary of Defense.

Lloyd Austin joined the Raytheon Technologies board after commanding CENTCOM, held stock worth $750K–$1.7M, then became Secretary of Defense.

James Mattis sat on the General Dynamics board before serving as Secretary of Defense — then rejoined it after resigning.

Structural Numbers

72%
Defense lobbyists who previously worked for Congress
Taxpayers for Common Sense, 2024
395
Lobbyists Lockheed employed in a single year
74% were former government employees. Source: WarCosts.org
$2.5B
Defense contractor lobbying spend over two decades
Plus $285M in campaign contributions. Source: POGO

The revolving door also operates institutionally. The Pentagon's Secretary of Defense Executive Fellows (SDEF) program sends promising military officers inside top defense and tech corporations for a year before returning them to the Pentagon. A Quincy Institute report found the program "helped place corporate interests at the very heart of U.S. military strategy." The Armed Services Committees sit at the center of this system — the NDAA has passed for 60+ consecutive years. The F-35's components are manufactured in 45 states: a deliberate strategy making the program politically untouchable regardless of performance.


The F-35: A $2 Trillion Case Study

The GAO has produced 23 annual assessments of DoD weapons acquisition. Its 2025 report found the Pentagon plans to invest $2.4 trillion in its costliest programs, with $49.3 billion in cost growth in a single year. The average time to deliver initial capability has stretched to 12 years from program start. Cost overruns are not exceptions in this system — they are the system.

$2T+
F-35 Lifetime Cost (Updated April 2024)
Up 17.7% from the $1.7T estimate just months earlier. Source: GAO April 2024
84%
F-35 Acquisition Cost Overrun
2001 estimate: $233B. Current: $428B+. Source: CAGW
52%
F-35 Mission Capable Rate
Against a 90% target. In 2024, all 110 deliveries were late by avg. 238 days. Source: GAO 2025
24 yrs
Time to Full-Rate F-35 Production
Full-rate production reached March 2025 — ~24 years after program start. Source: GAO
Major Weapons Program Cost Overruns: Original vs. Current Estimated Cost (USD Billions)
Source: GAO Weapon Systems Annual Assessment 2025 (GAO-25-107569); CAGW F-35 tracking; Defense News KC-46 investigation (Jan 2024); USNI News Sentinel ICBM reporting (June 2025); National Security Journal Zumwalt analysis. All figures in current-year dollars where available.

Boeing's KC-46 tanker has cost Boeing over $7 billion in absorbed overruns — exceeding the original $4.9 billion contract value. The Sentinel ICBM program is 81% over its baseline cost estimate with $36 billion in growth in a single year. Despite eight straight audit failures, Congress authorized approximately $3.9 trillion in additional military spending since the first failed audit in 2018.

Defense News 2024; Arms Control Association 2025; USNI News June 2025; Colorado Newsline 2023

The Forever Wars: $8 Trillion on a Credit Card

Brown University's Costs of War Project provides the most comprehensive accounting of post-9/11 war expenditure. The total estimated cost through FY2022: $8 trillion — funded entirely through government borrowing. No war bonds. No tax increases. The mechanism of supplemental appropriations and Overseas Contingency Operations kept war costs invisible to most taxpayers until the interest bills started arriving.

$8T
Total Post-9/11 War Cost Through FY2022
Brown University Costs of War Project. Entire sum borrowed — no tax increase, no war bonds.
940K+
People Killed by Direct Violence
Including 432,000+ civilians. Indirect deaths (disease, displacement): 4.5–4.7 million. Source: Costs of War
38M
People Displaced by Post-9/11 Wars
Source: Costs of War Project, Brown University
$2T+
Projected Interest on War Borrowing by 2030
By 2030, interest payments alone will equal direct war operations spending. Source: Brown University
Post-9/11 War Cost Breakdown: $8 Trillion (Brown University Estimate)
Source: Brown University Costs of War Project — Summary of War Costs through FY2022. Direct OCO spending (~$2.3T), Pentagon base budget increases (~$900B), Dept. of Homeland Security since 2002 ($1.1T+), veterans care current and projected ($2.2T), interest on war borrowing ($1T+ now, projected $2T+ by 2030). Veterans care obligations extend through 2050.

The human cost compounds over generations. Over 1.8 million veterans carry officially recognized service-connected disabilities. Veterans' care costs are projected to reach $2.2–2.5 trillion by 2050 — a bill that grows larger every year while active care remains inadequate.


Eight Consecutive Failed Audits

The Pentagon is the only one of the federal government's 24 major agencies that has never passed a full audit. Congress mandated the first department-wide audit in 2018. The result every year since: failure. The FY2025 audit (released December 19, 2025) returned a "disclaimer of opinion" — auditors could not obtain sufficient evidence to express any opinion at all about the Pentagon's financial statements. The department reported $4.65 trillion in assets and $4.73 trillion in liabilities.

8
Consecutive Failed Audits (2018–2025)
Only agency of 24 that has never passed. Source: Federal News Network Dec 2025
26
Material Weaknesses Identified (FY2025 Audit)
Plus 2 significant deficiencies. Result: "disclaimer of opinion." Source: U.S. News Dec 2025
63%
Of $3.8T in Assets Unaccounted For (2023)
Pentagon disputes "missing money" framing — argues insufficient documentation. Source: Responsible Statecraft
$125B
In Administrative Waste Identified — Then Buried
2015 internal Pentagon report suppressed out of fear Congress would cut the budget. Source: Washington Post

The GAO has flagged Pentagon property-tracking deficiencies since at least 1981. Despite eight straight audit failures, Congress authorized approximately $3.9 trillion in additional military spending since the process began. Sen. Bernie Sanders proposed legislation to impose fines on the Pentagon for failing audits. Lawmakers from both parties declined to consider it.

Colorado Newsline Dec 2023; Responsible Statecraft 2024; GAO historical records

Private Military Contractors: War Without Accountability

The ratio of contractors to military personnel surged from 1:55 in Vietnam to 1:1 in Iraq and 1.43:1 in Afghanistan — one of the most significant structural shifts in American warfare. At peak deployment, approximately 163,000 contractors served in Iraq and 117,000 in Afghanistan. By 2016, contractors outnumbered troops in Afghanistan by 3:1. These forces operated in a legal grey zone — not subject to the Uniform Code of Military Justice and often shielded from local prosecution.

$187B
DoD-Funded Contracts in Iraq, Syria & Afghanistan (FY2011–FY2019)
In FY2021 dollars. Source: Congressional Research Service
$2B
Blackwater Peak U.S. Government Contracts
Founded by ex-Navy SEAL Erik Prince, brother of Education Sec. Betsy DeVos

On September 16, 2007, Blackwater contractors escorting a U.S. embassy convoy opened fire in Nisour Square, Baghdad — killing 17 Iraqi civilians, including a 9-year-old boy. Four contractors were convicted in 2014. All four were pardoned by President Trump on December 22, 2020. Five independent UN experts condemned the pardons as "an affront to justice" that "violate U.S. obligations under international law."

Wikipedia — Nisour Square Massacre; The Intercept Dec 2020; UN Human Rights Office Dec 2020

The use of contractors allowed policymakers to appear to withdraw while keeping proxy forces in theater — making war less politically visible and less democratically accountable. The DoD stopped publicly reporting military deployment numbers in late 2017, citing "operational security."


Veterans Struggle While Contractor Stocks Soar 1,100%

Since September 10, 2001, Lockheed Martin's stock rose 1,163%, Northrop Grumman rose 1,056%, and General Dynamics rose 743% — all outperforming the S&P 500's 413% gain. The contrast with veterans' outcomes tells the story of the MIC's actual priorities.

6,398
Veterans Who Died by Suicide in 2023
~17.5 per day. Veteran suicide rate (35.2/100K) more than double non-veteran rate. Source: VA / Task & Purpose 2025
$571M
VA Spent on Suicide Prevention FY2024
Less than one-tenth of what Lockheed Martin returned to shareholders alone that year.
1.2M
Veterans on Food Stamps
Source: Center on Budget and Policy Priorities
4.6M
Veterans Above Poverty Line But Below Cost-of-Basics Threshold
27% of all veterans. Source: UnitedForALICE 2024
Defense Contractor Stock Performance vs. S&P 500: Sept 10, 2001 – 2024 (% Gain)
Source: WarCosts.org — Stock performance tracker post-9/11. S&P 500 ~413% gain over same period. Note: Boeing's defense division is part of a conglomerate that has experienced significant commercial and quality crises, which affected overall stock performance differently from pure-play defense peers.

The economic burden of PTSD alone: $17.8 billion in disability costs. Annual veteran homelessness programs total roughly $2–3 billion — compared to nuclear arsenal maintenance costs of $95 billion per year. Only 23% of service members with PTSD or depression receive "minimally adequate care." Sixty percent fear seeking mental health help will hurt their careers.


Defense Contractors Shaped the News About Their Own Wars

General Electric owned NBC from 1986 to 2013 while simultaneously ranking as one of the top military contractors. In 2004 alone, GE received $2.8 billion in military contracts. In April 2008, David Barstow of the New York Times published a Pulitzer Prize-winning investigation revealing that the Bush administration secretly cultivated more than 70 retired military officers as TV news analysts from 2002 to 2008.

The Pentagon program designated these analysts as "message force multipliers" — paid commentators who appeared as independent military experts on television while receiving strategic talking points from the DoD. Many had undisclosed financial ties to defense contractors as employees, investors, or lobbyists. Former NBC analyst Kenneth Allard called it "psyops on steroids." A DoD Inspector General report initially found no wrongdoing — then was withdrawn as "flawed."

New York Times — David Barstow, Pulitzer Prize Investigation (2008); Project Censored; SourceWatch

The pattern persists. The Lever reported in 2022 that CNN, MSNBC, and NBC News routinely failed to disclose that military analyst guests advocating for arming Ukraine were employed by weapons companies. FAIR found that 20 of 22 featured American guests during the Ukraine crisis were current or former military or government officials, many with undisclosed defense industry ties. Former DHS Secretary Jeh Johnson appeared as an MSNBC analyst while sitting on the Lockheed Martin board — without viewer disclosure.


The Bigger Picture: Scale and Scope

750
U.S. Military Installations Across 80+ Countries
171,500+ active-duty troops stationed overseas. Annual cost: ~$150B. Source: World Population Review 2025
5,177
U.S. Nuclear Warheads
10-year nuclear modernization cost: $946 billion — up 25% from previous estimate. Source: Arms Control Association 2025
43%
U.S. Share of Global Arms Sales
World's largest arms exporter. FY2025 total arms transfers: $331 billion. Source: SIPRI 2025 / State Dept 2026
9,627%
Increase in U.S. Arms Imports by Ukraine
2015–19 vs. 2020–24. Source: SIPRI Trends in International Arms Transfers 2025
Where the Money Goes vs. Where Veterans Are: A Spending Contrast
Source: Arms Control Association 2025 (nuclear maintenance); Task & Purpose / VA FY2024 (veteran suicide prevention); Costs of War Project (veteran care obligations); GAO 2025 (F-35 sustainment annual projection). The F-35 program's $1.58T sustainment cost alone is 83x the $23.92B annual IDEA special education federal funding shortfall.

Public opinion remains genuinely split. Gallup finds roughly equal thirds saying the U.S. spends too much, too little, and about right on defense. Only once in 50+ years of polling has a majority said "too little" — January 1981. The spending continues regardless of what the majority says.

Gallup — Military Spending Opinion Trends 2024
Sources & Citations
SIPRI — Trends in World Military Expenditure 2024 (April 2025 release); Trends in International Arms Transfers 2024 — sipri.org
Quincy Institute for Responsible Statecraft — Profits of War: Top Beneficiaries of Pentagon Spending 2020–2024 — quincyinst.org
Brown University Costs of War Project — Summary of War Costs; Human Costs of Post-9/11 Wars — costsofwar.watson.brown.edu
U.S. GAO — Weapon Systems Annual Assessment 2025 (GAO-25-107569); F-35 Will Now Exceed $2 Trillion (2024) — gao.gov
Project on Government Oversight (POGO) — Brass Parachutes: Defense Contractor Revolving Door (2018); Pentagon Revolving Door Fact Sheet — pogo.org
OpenSecrets — Defense Sector Lobbying 2024; Lockheed Martin Political Spending; Northrop Grumman Summary — opensecrets.org
Taxpayers for Common Sense — Political Footprint of the Military Industry (Oct 2024) — taxpayer.net
National Archives — President Eisenhower's Farewell Address; PBS American Experience — Eisenhower Farewell
Federal News Network — Defense Department Unable to Pass Its Annual Audit Again (Dec 2025)
U.S. News & World Report — Pentagon Fails Eighth Audit, Targets 2028 (Dec 2025)
Arms Control Association — Curb the Skyrocketing Cost of U.S. Nuclear Modernization (May 2025)
Task & Purpose — Veterans Suicide Report 2025; VA News — FY2024 Suicide Prevention Spending
Peterson Foundation — Budget Explainer: National Defense; Concord Coalition — Defense Spending Primer
Defense News — KC-46 Cost Overrun Investigation (Jan 2024); Boeing Future Combat Systems (2016)
New York Times — David Barstow Pulitzer Investigation: Pentagon Military Analyst Program (April 2008)
The Lever / Salon — CNN and MSNBC Pundits Profit from Undisclosed Defense Contractor Ties (April 2022)
Wikipedia — Nisour Square Massacre; UN News — Blackwater Pardons Condemned (Dec 2020)
Center on Budget and Policy Priorities — SNAP Helps 1.2 Million Veterans With Low Incomes
WarCosts.org — Largest Defense Contractors; Stock Performance Post-9/11 Tracker
U.S. Department of State — Fiscal Year 2025 U.S. Arms Transfers and Defense Trade (March 2026)