Transcript:Today I want to talk about who’s getting the most out of Trump’s war. That war is costing the U. S. about 1 billion dollars a day. The Pentagon’s budget is around 1 trillion dollars this year, and Trump wants an additional 500 billion dollars. Because of the war, the cost of oil has topped 100 dollars a barrel, and the price of a gallon of gas at the U. S. pump now averages 3.67 dollars . up from 2.92 dollars before the war. The strain on the federal budget has given Republicans an excuse to demand further cuts in federal assistance to people in need. JD Vance recently kicked off a “war on waste and fraud” by announcing suspension of Medicaid payments to Minnesota, charging that the program is rife with fraud perpetrated by “bad actors in our society … [who] decide to make themselves rich.”But if you want to find real waste and fraud, look no further than Pete Hegseth’s “Department of War.”A new analysis by government watchdog Open the Books found that as the 2025 fiscal year was ending, Hegseth’s Pentagon spent: nearly 100 dollars,000 on a Steinway grand piano to outfit the home of the Air Force chief of staff. 60 dollars,719 on premium office furniture, including at least one luxurious 1 dollars,844 Aeron Chair. 12 dollars,540 for three-tiered fruit basket stands. 2 million dollars on Alaskan king crab, 6.9 million dollars on lobster tail, 15.1 million dollars on ribeye steak, and 1 million dollars on salmon. 124 dollars,000 for ice cream machines. and 26 dollars,000 for sushi preparation tables. The Pentagon has failed every audit since it was legally required to start submitting them in 2018, and reports say it will continue to fail them at least through 2028. The ballooning profits of military contractors are helped by their near monopoly on defense production. Since the 1990s, the number of prime contractors for the Defense Department has shrunk from 55 to five. Keep following the money. These giants have been spending more on enriching their investors than expanding production. Between 2020 and 2025, top military contractors devoted 110 billion dollars to stock buybacks and dividends . more than double what they spent on capital expenditures . which boosted their stock values and the pay packages of their CEOs. And who are their biggest investors and CEOs? Trump loyalists. Larry Ellison’s Oracle provides Hegseth’s war machine with cloud infrastructure and enterprise software. (Reminder: Ellison is the second-richest person in America and a Trump loyalist on the verge of owning a media empire comprised of CBS, CNN, TikTok, Comedy Central, and HBO.)Elon Musk’s SpaceX has secured billions in contracts for launching sensitive satellites and space surveillance. Musk’s xAI has received a Pentagon contract to develop advanced AI tools. (Reminder: Musk is the richest person in the world and spent a quarter of a billion dollars getting Trump reelected in 2024.)Peter Thiel’s Palantir Technologies has landed multibillion-dollar defense contracts, including a 10 billion dollars agreement with the U. S. Army to provide AI-driven data analytics and software to integrate AI, surveillance, and battlefield management systems. (Reminder: Thiel is a billionaire who contributed 1.25 million dollars to Trump’s 2016 presidential campaign, including 1 million dollars to a pro-Trump super PAC, and then 10 million dollars to getting JD Vance elected to the U. S. Senate in 2022.)Not to forget Big Oil, now enjoying windfall profits as global oil prices soar. (Recall Trump asking oil company executives for 1 billion dollars for his 2024 campaign, in return for undisclosed favors.) Among others benefitting from the turmoil is Jared Kushner, Trump’s son-in-law and one of the U. S. government’s chief negotiators in the Middle East, who’s busily raising at least 5 billion dollars or more for his private-equity investment firm from governments in the Middle East, including Saudi Arabia’s Public Investment Fund. Finally, there’s Trump’s on-again, off-again ally Vladimir Putin. In just two weeks of war, Russia has reaped an estimated 6.9 billion dollars from the increase in oil prices and the easing of sanctions. What to do? At the very least, Congress should:Prohibit defense contractors from making campaign donations or lobbying Congress. Why should taxpayers subsidize these activities? Tax windfall profits from Trump’s war (or from any war). America has had windfall profits taxes during wartime before. Given the size of current windfalls, we need it again. Cut the defense budget. Start by cutting it 10 percent each year it fails audits. This is particularly important during the Trump-Hegseth era of defense bloat. As long as Trump and his Republicans control Congress and the executive branch, these reforms don’t have a prayer. Still, Democrats should introduce them and push for them. Let Trump and his Republicans go on record voting against them. Robert Reich is a professor of public policy at Berkeley and former secretary of labor. His writings can be found at https://robertreich. substack. com/.Our Analysis:The True Architects of War Economy: A DissectionIn the intricate web of military spending, political patronage, and corporate profiteering, the recent article by Robert Reich draws attention to the multifaceted beneficiaries of what is termed "Trump's war." This analysis aims to dissect the underlying power structures, decision-making processes, and potential misdirections within the narrative to pinpoint where responsibility truly lies.Institutional Power and Decision MakingFirstly, it is crucial to identify who holds institutional power in the context of military spending and war profiteering. The U. S. government, particularly under the Trump administration, alongside Congress, wields the ultimate authority in defense budget allocations, war decisions, and legislative reforms targeting corporate practices.Defense Department: Pete Hegseth's so-called "Department of War" exemplifies the unchecked power and decision-making authority within the Pentagon, highlighted by egregious spending on luxury items. The Pentagon's institutional power is immense, given its control over military operations and budgetary discretion, albeit with Congressional approval.Congress: Republican control of Congress, as highlighted in the narrative, plays a significant role in enabling the war economy, through both the approval of increased defense spending and the resistance to regulatory reforms aimed at curbing corporate influence and profiteering.Framing and MisdirectionReich's article adeptly points out the scapegoating and diversion tactics employed by political figures like JD Vance, who focus on "waste and fraud" in federal assistance programs to divert attention from the colossal waste within the Pentagon. This tactic misdirects responsibility toward actors with limited control over the federal budget and defense spending, framing individuals and programs designed to assist them as the problem rather than addressing systemic issues within defense budget management.The Corporate BeneficiariesThe narrative correctly identifies the military-industrial complex's beneficiaries, from defense contractors to Big Oil, backed by Trump loyalists and investors. The consolidation of defense contractors into a near-monopoly not only stifles competition but also increases their influence over government decisions, supported by substantial campaign donations and lobbying efforts.Military Contractors: Companies like Oracle, SpaceX, and Palantir Technologies, led by Trump-affiliated magnates, secure lucrative contracts, benefiting from the war economy. Their influence is compounded by their financial contributions to political campaigns, ensuring a conducive environment for their continued profitability.Big Oil and Global Politics: The geopolitical ramifications of war, including heightened oil prices, underscore the interconnectedness of war, energy policy, and global politics. Figures like Jared Kushner and entities like Saudi Arabia's Public Investment Fund are emblematic of the complex interplay between U. S. foreign policy, personal enrichment, and the global energy market.Proposed Reforms and Political RealityReich’s call for reforms, including prohibiting defense contractor donations, taxing windfall profits, and slashing the defense budget for failing audits, confronts the political reality of a Congress and executive branch under the sway of the very interests these reforms aim to curtail. The suggestion that Democrats push for these reforms to force Republicans into a revealing vote is a strategic one, albeit optimistic given the current political landscape.ConclusionThe article under scrutiny sheds light on the beneficiaries of the war economy, driven by institutional decisions made within a framework of political and corporate collusion. While it accurately identifies the actors profiting from the status quo, the emphasis on Trump and his allies risks simplifying a complex system of mutual dependencies that transcend individual administrations. The real story here is not just about who benefits from Trump's war but about the enduring structures that facilitate and perpetuate a war economy, necessitating a broader, systemic approach to reform.s
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