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Old 08-17-2007, 02:01 PM   #9 (permalink)
baloney_detector
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Quote:
Originally Posted by hkbajwa View Post
Well it IS a fact that those very same people could find employment in any number of state-subsidized industries. Instead of paying people to make weapons, perhaps you would consider paying them to take care of a free hospital.

In any case the military-industrial complex makes a few people VERY rich. Sure it provides people with employment but look at the cost these same people actually pay. THey make weapons that the companies sell to turn a profit. THey get their salaries but see none of the "benefits" of selling weapons.

However if even only HALF of current military spending was redirected to healthcare, it would provide the same level of employment. Only the advantages would trickle down to EVERY american and not just the company directors and shareholders.

And how does the sale support the US economy? They are SUBSIDIZED industries.. that means that the government actually SPENDS on them. And as is typical in america, the companies can expect tax breaks and other benefits, so i sincerely doubt the benefit these companies provide to the american people.

It's sort of insane that everybody is all too happy to produce weapons to sell to people so they may kill each other.. but you will not spend money on making your people healthier... unebelievable!
First of all, when the government subsidizes an industry this generally means that that industry is gaining an economic benefit from taxpayers dollars...meaning that those businesses pay artificially lowered taxes or the products they produce have price controls layed upon them that artificially act to inflate the sales prices of those items that, in turn, creates greater profits for those companies...or any number of ways that the government acts to help that industry endure.

(When price controls are put into effect that artificially raise the price of goods or services, the end consumer, which is usually the general population, sort of pays an indirect tax on those goods or services because the prices of those goods or services would be lower in a free market. So, in this situation, the general population is, in a way, paying taxes indirectly-or subsidies directly-to an industry...which makes those industries more profitable.)

However, when the US government purchases goods or services from industries, those businesses in those industries aren't, in fact, being subsidized because the government, in this case, is just like any other consumer of those goods or services.

Now, regarding the US military industrial complex, the simple sale of weapons to the government would not mean that that industry is being subsidized...unless, of course, that industry does have some level of real subsidization, meaning tax breaks to the industry and so forth.

So, even if the US military industrial complex is truly being subsidized to some extent, there are still actual exchanges of cash, in the form of taxes, for goods or services that are occuring over and above that subsidization.

Now, you can argue that this industry shouldn't be subsidized at all so that more taxpayer's dollars can be spent elsewhere....which I'd probably agree with you since this industry clearly has a future, even though particular companies within the industry might scream that they aren't making a great enough profit for various reasons.

However, when you compare subsidies to other industries, such as agriculture, you have a different picture because the government generally isn't actually getting any direct goods or services in return for its investment.

So, if one is to argue that the US industrial complex shouldn't be subsided, then it would be rational to conclude that other industries shouldn't be subsidized either...regardless of the goods or services such industries provide...especially if the US government isn't getting anything in return for taxpayer's money.

Personally speaking, I've always felt that the US government should be run like a small "Mom and Pop" corner store because if Mom and Pop don't make a profit, or at least break-even overall, Mom and Pop don't get to eat.

(As a side note, workers in the US military industrial complex tend do get paid fairly well...and I know this because I've known several people within that industry over the years.)
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