Major Sections and Sub-Sections of the Book

archived as

more of Military applications at

[StealthSkater note: The following was taken from Tom Gervasi's excellent book Arsenal of Democracy II, copyright 1981, ISBN 0-394-17662-6 . Mr. Gervasi was a former counterintelligence officer assigned to the Army Security Agency and has been a contributing author to Penthouse, Harper's Magazine, and the Columbia Journalism Review. He has been an editor and marketing executive in book publishing since 1961. Despite it's being over 20 years old, it does give an accurate and disturbing presentation of how weapons systems are procured and distributed.

Gervasi predicted that the Reagan administration's program for massive increases in defense expenditures will benefit private industry more than national security. He concludes that the United States has always held the lead in military power, and can easily retain that lead without the crippling sacrifices now being urged on the middle-class and the poor. Please keep in mind that the $-Dollar figures and political strategies reported are in the 1980 timeframe when the book was written.]

Major Sections and sub-sections of the book_

The Price of Defense

The American Military Budget

Defense Spending and Inflation

American Arms Exports

Base Rights and Military Aid

The Rapid Deployment Force

The Threat to the Oil Fields

The Afghan Intervention [1979]

America's Power Projection Capabilities

America's Waning Power in the World

The Crisis in Iran

The Hostage Rescue Attempt

The Power Vacuum in the Persian Gulf

The Yemen Crisis

The Role of the Oil Conglomerates

The Price of Peace in the Middle East

The American Arsenal in Iran

American Military Power Overseas

The Soviet Threat

The Military Balance in Europe

Tactical Nuclear Weapons

The Strategic Balance of Power

The Counterforce Doctrine

The Return of the Anti-Ballistic Missile

Lasers and Particle Beams

The War in Space

Chemical and Biological Warfare

Stealth Aircraft

The Defense Establishment

The Real War

A Survey of American Weapons and Arms Sales

America's Role in the Arms Trade

The Policy of Deterrence

Recession and the Oil Crisis

Sales Efforts and the Arms Race

The Changing NATO Market

Arms to the Third World

The Growth of the Defense Establishment

The Cost of Weapons

Inflation

The Volume of Arms Production

The Cost of Advanced Engineering

Sales Procedures

Private and Commercial Sales

The Military Assistance Program

Cumulative American Arms Exports

Foreign Military Sales

Financed Sales

Military Education and Training

Costs, Savings and the True Value of Exports

The Need for Controls

Solutions

The Weapons in This Book

[- - what follows next is in-depth technical reviews of the performance of the following weapon systems - --]

COMBAT AIRCRAFT

Cessna A-37B Dragonfly Cessna T-37C Jet Trainer Convair F-102A Delta Dagger

Convair F-106 Delta Dart Douglas A-1 Skyraider Douglas A-3 Skywarrior

Fairchild Republic A-10A Close Air Support Aircraft Fairchild Republic F-105 Thunderchief

Republic F-84G Thunderjet, F-84F Thunderstreak, and RF-84F Thunderflash

Fairchild AC-119G Shadow and AC-119K Stinger Fairchild AU-23A Peacemaker

General Dynamics F-16 Falcon General Dynamics F-111 and FB-111A Grumman F-14A Tomcat

Grumman A-6E Intruder and EA-6B Prowler Grumman OV-1 Mohawk Helio AU-24A Stallion

Lockheed F-80C ShootingStar and T-33A Trainer Lockheed F-104 Starfighter

Martin B-57 and General Dynamics RB-57F McDonnell F-101 Voodoo

British Aerospace harrier AV-8A and McDonnell-Douglas AV-8B McDonnell-Douglas F-4 Phantom

McDonnell-Douglas A-4 Skyhawk McDonnell-Douglas F-15 Eagle North American F-86 Sabre

North American F-100 Super Sabre Northrop F-5A Freedom Fighter and F-5E Tiger II

Rockwell OV-10 Bronco Vought A-7 Corsair II Vought F-8 Crusader

COMBAT SUPPORT AND SPECIAL MISSION AIRCRAFT

Beech F-33 Bonanza / QU-22 Beech Model B55 Baron / T-42A Cochise and VC-6A

Beech Model B80 Queen Air / U-8 Seminole (former L-23) Beech Model C90 King Air / T-44A and VC-6B

Beech Model B100 King Air / U-21 UTE and RU-21

Beech Model 200 super King Air / C-12A Huron and RU-21J

Beech Model 45 / T-34A/B Mentor and T-34C Turbo mentor Boeing KC-97L Stratofreighter

Boeing KC-135 Stratotanker / EC-135 and RC-135 Boeing E-3A AWACS

Cessna O-1 Bird Dog L-19 and SIAI Marchetti SM-1019  Cessna Model 337 Super Skymaster / O-2

Cessna Model 310 / U-3A/B (former L-27A) Cessna Model 185 Skywagon / U-17

Cessna Model 180 Skywagon and Model 182 Skylane Cessna Model 150/A 150 Aerobat

Cessna Model 172 Skyhawk T-41 Mescalero Grumman E-2 Hawkeye Grumman TF-9J Cougar

Grumman TC-4 Academe / VC-4 Gulfstream  Helio U-10 Super Courier

Lockheed AL-60 Aermacchi AM-3C Grumman S-2 Tracker E-1 Tracer and C-1 Trader

Lockheed P-2 Neptune Lockheed P-3 Orion Lockheed S-3 Viking Lockheed U-2

Lockheed EC-121 Warning Star Constellation Lockheed SR-71A Blackbird

General Dynamics Convair T-29 North American T-6 Texan North American T-28 Trojan

North American Rockwell RA-5C Vigilante Piper Model PA-18 Cub / L-4/L-18 and Model 150 Super Cub

Piper Model PA-28 Cherokee Rockwell T-2 Buckeye

(WW II Aircraft remaining in service in some countries)

Beech AT-10 and AT-11 Kansan Beech C-43 and C-45 Expeditor Chance Vought F-4U Corsair

Convair PBY-5 Catalina Douglas B-26 Invader Curtiss-Wright C-46 Commando

Grumman HU-16 Albatross North American B-25 Mitchell

North American P-51 Mustang / Cavalier F-51D

Lockheed PV-2 Harpoon Republic P-47 Thunderbolt

TRANSPORT AND UTILITY AIRCRAFT

Beech 189 Boeing C-135 Boeing KC-97 Stratofreighter Boeing T-43 Convair C-131 Samaritan

Cessna Model 177 Cardinal / V206C Stationair / 207 Skywagon Cessna Model 500 Citation

Douglas C-47 Skytrain and C-117 Douglas C-54 Skymaster C-118 Liftmaster

Douglas C-124 Globemaster II

Douglas C-133 Cargomaster Fairchild C-119 Flying Boxcard and C-119K Packet

Fairchild C-123 Provider Grumman C-1 Trader Grumman C-2A Greyhound

Grumman VC-4 Gulfstream Lockheed C-5A Galaxy Lockheed C-141 Starlifter

Lockheed C-130 Hercules Lockheed C-140 Jetstar

McDonnell Douglas C-9 Nightingale Skytrain II

Piper U-11A Aztec and Turbo Aztec Piper Navajo / Turbo Navajo / Navajo Chieftain

Rockwell International T-39 Sabreliner Rockwell International U-48 Aero Commander / Turbo Commander

HELICOPTERS

Bell Model 206 Jet Ranger / OH-58 Kiowa / TH-57 Sea Ranger Bell Models 204 and 205 UH-1 Iroquois

Bell Model 212 UH-1N Iroquois Bell Model 47 OH-13 Sioux Bell AH-1 Cobra

Boeing Vertol CH-47 Chinook Boeing Vertol Model 107 / H-46 Sea Knight

Fairchild Hiller FH-100/OH-5

Boeing Vertol Models 43 and 44 / H-21 Shawnee Hiller Model 12E Raven / OH-23 and Model 360/UH-12

Hughes Models 269 and 300 / TH-55A Osage Hughes Model 500 / OH-6 Cayuse

Kaman SH-20 and SH-2F Sea Sprite Kaman HH-43 Huskie

Sikorsky Model S-58/H-34 Choctaw SH-34 Sea Bat UH-34 Sea Horse Hughes AH-64 Apache

Sikorsky Model S-55 / H-19 Chickasaw Sikorsky Models S-61A and S-61B H-3 Sea King

Skikorsky S-61R / HH-3E Jolly Green Giant Sikorsky Model S-62 / HH-52A

Sikorsky Model S-64 Sky Crane CH-54 Tarhe Sikorsky Model S-65 / H-53 Sea Stallion

Sikorsky Model S-70 / UH-60 Blackhawk Lamps Mk III

AIRCRAFT AND HELICOPTER ARMAMENT SYSTEMS

General Electric 7.62mm Minigun M-134 / GAU / 2B/A General Electric 5.56mm XM-214

General Electric M-61A1 Vulcan 20mm cannon Hughes MK 11 Mod 5 Twin 20mm cannon

General Electric M-197 20mm gun General Electric XM-188 30mm gun

General Electric GAU-8/A 30mm Avenger Emerson XM-1440 30mm automatic gun

Hughes XM-230 chain gun General Electric 7.62mm gun pod SUU-11B/A/M-18E1

General Electric 20mm Vulcan gun pod / SUU-16/A/XM-12

General Electric 20mm Vulcan gun pod / SUU-23/A/XM-25 Hughes Mk 4 Mod 0 20mm gun pod

General Electric XM-214 5.56mm gun pod General Electric GPU-2/A 20mm light-weight gun pod

M-75 40mm Grenade Launcher M-129 40mm Grenade Launcher Emerson XM-120 Universal Turret

Emerson TAT-101 Emerson TAT-102 Emerson TAT-161 Emerson TAT-140

Emerson M-28E1 Turret M-5 Turret System General Electric M-97 20/30mm Flexible Armament System

Emerson XM-51 Suppressive Fire Subsystem Emerson XM-53 Suppressive Fire Subsystem

Emerson XM-52 Area Fire Subsystem General Electric XM-35 Armament Subsystem

XM-30 Armament Subsystem Emerson Mini-Tat Mamee Ammunition Module

M-8 Armament System M-27E1 Armament System M-16 Armament System

M-21 Armament System XM-41 Armament System

M-23 Armament System M-24 Armament System XM-41 Armament System

XM-93 and XM-94 Armament Subsystems Emerson TOW anti-tank missile launcher

BOMBS AND AIR MUNITIONS

General Purpose Demolition Bombs

AN-M30A1 100-lb General Purpose Bomb MK I 100-lb Demolition Bomb

M38A2 100-lb Practice Bomb

AN-M57A1 250-lb General Purpose Bomb AN-M58A2 500-lb semi-Armor-Piercing Bomb

AN-M64A1 500-lb General Purpose Bomb M52A1 1,000-lb Armor-Piercing Bomb

AN-M59 1,000-lb semi-Armor-Piercing Bomb AN-M65A1 1,000-lb General Purpose Bomb

AN-MK 33 1,000-lb Armor-Piercing Bomb MK III 1,100-lb Demolition Bomb

AN-MK I 1,600-lb Armor-Piercing Bomb MK I 2,000-lb Demolition Bomb

AN-M66A1 2,000-lb General Purpose Bomb M103 2,000-lb semi-Armor-Piercing Bomb

AN-M56A2 4,000-lb Light-Case Bomb  MK 81 250-lb General Purpose Bomb

Mk 81 Snakeye 250-lb General Purpose High-Drag Bomb MK 82 500-lb General Purpose Bomb

Mk 82 Snakeye 500-lb General Purpose High-Drag Bomb M117 750-lb General Purpose Bomb

M117D Destructor 750-lb General Purpose High-Drag Bomb Mk 83 1,000-lb General Purpose Bomb

Mk 83 Destructor 1,000-lb General Purpose High-Drag Bomb Mk 84 2,000-lb General Purpose Bomb

M118 3,000-lb General Purpose Bomb

Chemical Bombs

AN-M46 100-lb Photoflash Bomb AN-M47A2 100-lb All-Purpose Chemical Bomb

M125A1 10-lb non-persistent Gas Bomb M34 Cluster M70 115-lb Gas Bomb

BLU-52/B 350-lb Chemical Bomb Mk 94 Mod 0 500-lb non-persistent Gas Bomb

Mk 116 Mod 0 Weteye 750-lb Chemical Bomb MC-1 750-lb non-persistent Gas Bomb

AN-M79 1,000-lb Chemical Bomb

Aerial Mines

MLU-10/B 750-lb Land Mine BLU-31/B 750-lb Demolition Bomb

MK 36 Destructor 500-lb Demolition Bomb

Mk 7 Gator Mine System Grasshopper Mine System BLU-42 WAAPM (Wide Area Anti-Personnel Mine)

BLU-54 WAAPM XM-22 Gravel Mine / XM-27 / XM-45E1

Unguided Aerial Rockets

Aircraft Depth Bombs

Incendiary and Fire Bombs

AN-M50A3 4-lb Incendiary Bomb M36 Incendiary Cluster Mk I 40-lb Incendiary Bomb

BLU-10A/B 250-lb Fire Bomb BLU-23/B 500-lb Fire Bomb BLU-32/B 500-lb Fire Bomb

AN-M76 500-lb Incendiary Bomb Mk 77 Mod 1 Fire Bomb M116A2 750-lb Fire Bomb

Mk 77 Mod 0 750-lb Fire Bomb Mk 78 Mod 2 750-lb Fire Bomb

Fragmentation and Cluster Bombs

M83 4-lb Fragmentation Bomb M28A2 100-lb Fragmentation Bomb

M29A1 500-lb Fragmentation Cluster

Mk II-A 17-lb Fragmentation Bomb Mk II-B 25-lb Fragmentation Bomb

AN-M41A1 20-lb Fragmentation Bomb M1A2 100-lb Fragmentation Cluster

AN-M26A2 500-lb Fragmentation Cluster M72A1 23-lb Fragmentation Bomb

AN-M81 260-lb Fragmentation Bomb M82 90-lb Fragmentation Bomb

M27A1 500-lb Fragmentation Cluster

Mk 44 Mod 0 550-lb Lazy Dog Missile Cluster BLU-26 Sadeye 1-lb Fragmentation Bomb

SUU-30B/B Suspended Underwing Unit CBU-24/B 750-lb Cluster Bomb Unit

BLU-66/B Pineapple 1-lb Fragmentation Bomb BLU-24/B Orange 1-lb Fragmentation Bomb

SUU-7C/A Suspended Underwing Unit CBU-46B/A 750-lb Cluster Bomb Unit

Mk118 2-lb anti-tank Fragmentation Bomb Mk 20 Mod 0 Rockeye 500-lb anti-tank Cluster Bomb

PLU-77/B APAM 1-lb Fragmentation Bomb CBU-59/B 750-lb APAM Cluster Bomb Unit

SUU-54/B Suspended Underwing Unit

Guided Bombs

Walleye I 1,100-lb TVGB (TeleVision-Guided Bomb) Walleye II GW Mk 4 Mod 4 2,000-lb TVGB

KMU-420/B 500-lb LGB (Laser-Guided Bomb) KMU-388/B: 500-lb LGB

KMU-351A/B 2,000-lb LGB KMU/353A/B 2,000-lb EOGB/IRGB (Electro-Optical/Infra-Red Guided Bomb)

KMU-32/B 750-lb LGB KMU-421 Pave Storm 2,000-lb LGB KMU-370/B 3,000-lb LGB

KMU-390/B 3,000-lb EOGB

Fuel Air Munitions

CBU-55/B 500-lb Fuel Air Munition CBU-72/B 500-lb Fuel Air Munition

Pave Pat II 2,500-lb Fuel Air Munition

MAD FAE (Mass Air Delivery, Fuel Air Explosive) FAESHED (Fuel Air Explosive, Helicopter-Delivered)

SLUFAE (Surface-Launched Unit, Fuel Air Explosive)

BLU-82/B 15,000-lb General Purpose Bomb ("Daisy Cutter")

In Development [1980]

WAAM (Wide Area Anti-Armor Munitions) Cyclops TGSM (Terminally-Guided SubMunitions)

WASP ERAM (Extended Range Anti-tank Mine) HSF-I and HSF-II RBU-1/A Pave Rocket

HSM (Hard Structure munitions)

GUIDED MISSILES

AIM-4 Falcon AIM-26B/AIM-47A AIM-9 Sidewinder AIM-7 Sparrow / RIM-7H Sea Sparrow

AIM-54A Phoenix AGM-12 Bullpup AGM-65 Maverick AGM-53A Condor AGM-45A Shrike

AGM-78 Standard ARM/RGM-66D AGM-84A Harpoon RGM-84A RIM-8 Talos

RIM-2 Terrier RIM-24 Tartar RIM-66A RIM-67A Standard RUR-5A Asroc

MGM-29A Sergeant MGR-1 Honest John / M-50 MGM-52 Lance M-47 Dragon MGM-71 TOW

MGM-51 Shilleagh MIM-72C Chaparral MIM-23 HAWK

MIM-14B Nike Hercules MIM-3 Nike Ajax FIM-43A Redeye FIM-92A Stinger

Roland SAM Patriot SAM AGM-88A HARM AGM-83A Bulldog Hellfire AIM-95 Agile

ZAGM-64A Hornet

TANKS AND ARMORED VEHICLES

M-551 Sheridan M-60 Main Battle Tank M-48 Patton II M-47 Patton I M-41 Walker Bulldog

M-24 Chaffee M-26 Pershing M-3A1 Stuart / M-5A1 M-4 Sherman

XM-1 Abrams M-113A1 Armored Personnel Carrier M-50 Armored Personnel Carrier

M-75 Armored Personnel Carrier M-114 Command and Reconnaissance Carrier

Lynx Command and Reconnaissance Carrier Armored Infantry Fighting Vehicle

XM-723 Mechanized Infantry Combat Vehicle M-2A1 Armored Half-Track / M-16

M-3A1 White Scout Car M-8 Greyhound / M-20 T-17E1 Staghound / T-17E2

V-150 Commando / V-200 Commando Scout XR-311 High Mobility Wheeled Vehicle

LVT-4 Amphibious Assault Vehicle LVTP-7 Amphibious Assault Vehicle

M-88 Armored Recovery Vehicle

M-578 Armored Recovery Vehicle

ARTILLERY

M-109 Self-Propelled Howitzer / M-109A1 M-108 Self-Propelled 105mm Howitzer

M-107 Self-Propelled 175mm Gun M-110 Self-Propelled 203mm Howitzer / M-110A2

M-55 Self-Propelled 203mm Howitzer M-44 Self-Propelled 155mm Howitzer

M-52 Self-Propelled 105mm Howitzer M-7 Self-Propelled 105mm Howitzer

M-56 Scorpion M-18 Hellcat Self-Propelled Gun M-10 Self-Propelled 76mm Anti-tank Gun

M-36 Self-Propelled 90mm Anti-tank Gun M-42 Duster Self-Propelled 40mm Anti-Aircraft Gun

M-50 ONTOS Self-Propelled Tank Destroyer  M-163 Vulcan Air Defense System

M-167 Vulcan Air Defense System M-55 .50-caliber Quad Anti-Aircraft Gun

M-1 40mm Anti-Aircraft Gun M-51 Skysweeper 75mm Anti-Aircraft Bun M-117 90mm Anti-Aircraft Gun

M-115 203mm Howitzer M-1A1 Long Tom 155mm Howitzer M-114 155mm Howitzer / M-114A1

M-123A1 155 Auxiliary-Propelled Howitzer M-101A1 105mm Howitzer M-102 105mm Howitzer

M-101 105mm Auxiliary-Propelled Howitzer XM-204 105mm Howitzer XM-198 155mm Howitzer

In Development [1980]

XM-70 105mm Automatic Howitzer GLAAD (Gun, Low-Altitude, Air-Defense)

Gepard Anti-tank/aircraft

TANK AND ARTILLER AMMUNITION

INFANTRY WEAPONS

Recoilless Rifles

M-40A1 106mm M-27A1 105mm M-67 90mm M-20 75mm M-18A1 57mmm

Rocket Launchers

M-20A1 3.5" M-72A1 66mm LAW / M-72A2

Mortars

M-2 4.2" M-30 4.2" M-1 81mm M-29E1 81mm M-2 60mm XM-224 60mm LWCM

Machine Guns

M-2HB Browning .50cal M-1917A1 Browing .30cal M-1919A4 Browning .30cal

M-60 7.62mm General Purpose

SubMachine Guns

M-1928A1 Thompson .45cal M-3A1 .45cal MAC 9mm Assault Atchisson M-1957 9mm

Foote MP-970 9mm

Rifles and Assault Guns

M-1903 Springfield .30cal rifle M-1 Garand .30cal rifle M-14 7.62mm rifle M-16A1 5.56mm rifle

XM-177E2 5.56mm Commando rifle M-21 7.62mm Sniper rifle Armalite AR-18 5.56mm rifle

AR-10 7.62mm Assault rifle M-1A1 .30cal Carbine/M-2 Ruger Mini-14 5.56mm rifle

M-1918A2 .30cal Browning automatic rifle XM-22 Stoner 63 5.56mm Assault rifle

XM-19 5.56mm Serial Flechette Rifle / XM-70

Revolvers and Self-Loading Automatic Pistols

M-1911A1 Colt .45cal automatic Colt .357 Magnum Trooper Mk III Smith & Wesson Model 15 .38 cal

Colt 9mm Commander Smith & Wesson Model 39 9mm Automatic / Model 59

Grenades and Mines

M-79 40mm Grenade Launcher XM-174 40mm Grenade Launcher M-203 40mm Grenade Launcher

M-57 Fragmentation Hand Grenade M-61 Fragmentation Hand Grenade

M-67 Fragmentation Hand Grenade M-68 Fragmentation hand Grenade

M-34 Hand or Rifle Incendiary Fragmentation Grenade Mk 2 Fragmentation Hand Grenade

Mk3A2 Offensive Hand Grenade AN/M-8 Smoke Grenade ABC/M-25A1 Gas Grenade

Ring Aerofoil Grenade M-16A1 Anti-Personnel Mine M-18A1 Claymore Anti-Personnel Mine

M-7A2 Anti-Personnel Anti-Tank Mine M-19 Anti-tank Mine Astrolite

NAVAL VESSELS (very scant, cursory coverage)

Aircraft Carriers

Cruisers

Destroyers

Allen M. Summer-class Charles F. Adams-class Forrest Sherman-class Fletcher-Class

Spruance-class

Minesweepers

Agile-class Auk-class Admirable-class Redwing-class Bluebird-class

Assault Ships

Casa Grande-class Cabildo-class County Class LST LSM Assault Ship

Frigates and Destroyer Escorts

Bostwick-class Dealey- and Courtney-class Rudderow-class Brooke- and Garcia-class

Oliver Hazard Perry-class

Patrol and Riverine Warfare Craft

Asheville-class PC Patrol Craft PCE Patrol Vessel PBR Mk I, Mk II and Mk III

PCF Swift Boat

Submarines

Balao-class Tang-class Guppy-class Los Angeles-class

Torpedoes

Mk 48 Mk 46 Captor Mk 37

Our NUCLEAR ARSENAL

Boeing B-52 Stratofortress General Dynamics FB-111A Rockwell B-1B

AGM-28 Hound Dog AGM-69A SRAM AGM-68A Air-Launched Cruise Missile (ALCM)

BGM-109 Tomahawk (SLBM) Titan II ICBM Minuteman II ICBM Minuteman III ICBM

SSBN Polaris submarine SSBN Poseidon submarine SSBN Trident submarine

MX ICBM Ground-Launched Cruice Missile Pershing II Neutron Bomb

… … … … … … … … … … … … … … … … … … … … … … … … … … … …

… … … … … … … … … … … … … … … … … … … … … … … … … … … …

1.(p.2) "Business has always preferred to maximize profits on old investments as long as possible. That is why defense contractors have refused conversion to civilian production. Rather than undertake costly changes in tooling and dies to manufacture tractors instead of tanks, they have preferred to continue making tanks whether or not tanks were any longer needed. That is why the vast influx of added funds now planned for defense will not produce an expansion of industrial capacity so quickly as it will raise the price of equipment already in production. That is why the newly decontrolled oil companies, after having predictably raised their prices, are now increasing their investments for profit rather than stepping up research into alternate energy sources."

"We have always regarded as sacrosanct the right to stress profit over productivity. That is why productivity is low. There is no longer any control over this trend today, because in most sectors of our economy afreemarket -- responsive to the laws of supply and demand -- nolongerexists. Today large corporate conglomerates simply set prices, free of competitive restraint."

2.(p.2) "We are told that a major reason for these startling increases in defense spending is inflation itself. Nottrue. The Carter administration called in 1979 for an increase in the military budget of 3 percent after adjustments to take account of inflation, and got it. It called in 1980 for an increase of 5.4 percent after inflation, and got it. … … In driving up the costs of military equipment each year, a factor far more important than inflation is the guarantee of payment in most military contracts for cost overruns. In 1977 alone, an additional $17.4 billion was taken from the taxpayer and given to industry for overruns on military programs, including $1.6 billion in the Navy's F-18 Hornet fighter program and $1.2 billion for Trident submarine construction. These added costs must be apportioned to the fixed number of weapon systems produced, increasing the unit cost of each by an amount far greater than inflation."

"Increased defense spending, on the other hand, ranks with the better-publicized cost of energy as one of the major causes of inflation. Freedom from cost constraints allows defense manufacturers to bid up the prices of raw materials without fear of penalty, and this affects prices in every other industry. The drain of technological skills from the civilian sector makes civilian production inefficient, and the resulting higher costs are passed on to the consumer. American manufactured goods no longer favorably compete in quality with foreign products."

3.(pp.2-3) "While presumably serving to protect our national security, weapons perform no useful service to the economy. They are capital-intensive totems, sitting in their silos, aircraft hangers and vast armored vehicle parks year-after-year, never -- one fervently hopes -- to carry out their intended tasks. Wages earned by the labor force that produced them have in the meanwhile accumulated buying power, but the defense industry has not created a corresponding supply of goods and services to absorb all this money. The resulting intensified demand for existing products drives up prices again."