US Defense Secretary Esper was a former top lobbyist for US defense contractor Raytheon

(Janyuary 14) After the assassination- aka euphemistically as "targeted killing"- of Iranian top general Qassem Soleimani in a US operation in Baghdad on January 3 Raytheon a large US defense contractor saw its stock shoot up and close at a record high.

US Defense Secretary Esper was for years a top lobbyist for Raytheon

Wikipedia describes Raytheon briefly: "The Raytheon Company is a major U.S. defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007. Raytheon is the world's largest producer of guided missiles.[4] On June 9, 2019, Raytheon announced a merger of equals with the aerospace companies of United Technologies.[5]Established in 1922, the company reincorporated in 1928 and adopted its present name in 1959. As of 2018, the company had around 67,000 employees worldwide and annual revenues of approximately US$25.35 billion.[6] More than 90% of Raytheon's revenues were obtained from military contracts and, as of 2012, it was the fifth-largest military contractor in the world.[7] As of 2015, it is the third largest defense contractor in the United States by defense revenue.[8]"

When Mark Esper was leaving his job at Raytheon to join the Trump administration he claimed that his salary and bonuses added up to $1,524,018 that year. Esper said his job was to be: “Responsible for company interactions with members of Congress and their staff at the Federal level and with all state and local elected officials and their staff.”

Now Esper does not lobby for more defense spending he is the principle defense policymaker and adviser. He is a powerful actor and is able to sign off on huge government contracts including ones that profit his former employer although he may not necessarily do so. However, one can expect that he will try to obtain the most money he can for the arms industry from which he came.

Trump administration has hired many former lobbyists

Esper has plenty of company in that according to a Pro-Publica analysis has so far hired 281 lobbyists, often to work in areas in which they had formerly been lobbyists. You would think that Esper faces a conflict of interest when he makes decisions that involve Raytheon. Even though he no longer works for them there sure could be a perception that he might favor them in decisions. However, Esper has decided that he will not recuse himself from matters involving Raytheon during the time he works for the US government. The Trump government seems not to care about avoiding the perception of bias.

Dwight Eisenhower's Military-Industrial Complex speech

In a farewell address in 1961 then President Dwight Eisenhower, himself a former five stare general and also Supreme Commander of allied forces in Europe during the second World War warned about the dangers of what he called the military-industrial complex: "We annually spend on military security more than the net income of all United States corporations. This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence -- economic, political, even spiritual -- is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.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.We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. 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, so that security and liberty may prosper together."

The appointment of Mark Esper as the US Defense Secretary is a perfect example of the government doing exactly what Eisenhower had warned Americans about. Esper's appointment gives the military industrial complex the power to have unwarranted influence over decisions of the government.

The revolving door

Lobbyists of all sorts not just from the military-industrial complex but from other important industries such as drug manufacturing move freely from industry into government. But then when they leave government, after they have formed many bonds and contacts with government officials, these former lobbyists often return to their former jobs. They then offer corporations that hire them valuable expertise in how to have influence within the complicated structures of government.

Rick Perry had been on the board of a company that control Energy Transfer LP, a pipeline company he had worked for up until 2016 after which he became Energy Secretary. However, just one month after leaving his government position he was back on the board of the company. He now has government experience promoting oil and gas deregulation and a large list of useful contacts.

Esper's predecessor Jim Mattis rejoined the board of General Dynamics just a few months after his resignation as Secretary of Defense. Esper has said that he would not rule out rejoining Raytheon.

The fox guarding the hen house

The Trump administration sometimes appoints former lobbyists to oversee agencies that were once targets for their lobbying. Some critics see this as the fox guarding the hen house. Esper being in charge of US national defense is surely a prime example in which the military-industrial complex will have an unwarranted influence on potential military actions. This influence could often be against the overall interests of the US.

The US military budget for 2019 was over $693 billion much more than any other country in the world. There is a huge opportunity cost to this expenditure as the US has many unmet needs in spending on infrastructure, education, health, the environment and many other areas. The appended video talks about the effect of military spending on the environment and other costs. Eisenhower's warning about the military-industrial complex was prescient but it seems to have fallen on deaf ears.

Previously published in the Digital Journal

Change of Defense Secretary means Boeing is out while Raytheon now in

(June 19)In a sudden change of positions Patrick Shanahan, the acting Defense Secretary announced that he would be withdrawing from consideration as a permanent Secretary.

Shanahan withdraws after revelation of past domestic violence incidence

A 2010 domestic violence incident with his former wife which Shanahan wishes not to be revisited as would happen at this confirmation hearing.

Shanahan was an ex-Boeing official

Shanahan had a long career at Boeing. He had risen to be a vice-president of the huge US aircraft and arms maker He joined the Trump administration first as Deputy Defense Secretary and then later as Acting Defense Secretary.

New Acting Defence Secretary was official at Raytheon

The new acting minister is Mark Esper, who was a former vice-president of Raytheon another large US arms maker. Esper was previously Secretary of the Army in the Trump administration. Esper served in the military in the 1990's but he rose to prominence only after his service with Raytheon. In both 2015 and 20016 Esper was named as one of the most powerful lobbyists in Washington.

While there is not likely to be any change in US policy from the transition to Espy, there could be more sales to Raytheon as a former top lobbyist is in a more powerful position.

Raytheon and Charles Faulkner

The appointment of Esper may raise questions about Raytheon's power in the Trump administration. This comes just weeks after the departure of Charles Faulkner another Raytheon lobbyist. A recent article suggests that Faulkner's departure was more or less a firing as he had been pushing arms sales to Saudi Arabia: "The resignation of Deputy Assistant Secretary of State Charles Faulkner last month appears to have been less a resignation and more of a sacking, according to officials familiar with the situation. Faulkner, a former Raytheon lobbyist turned Trump appointee, was spearheading the administration’s scheme to declare a phony “state of emergency” to avoid Congressional oversight on arms sales. In this case, the arms sales included billions from his former employer, Raytheon. Faulkner’s role in this decision cannot be overstated, and since Congress started moving to restrict sales to the Saudis he had been one of the lone voices in the State Department urging Pompeo to sign off on sales, as well as being a heavy advocate of skirting oversight."

Previously published in the DIgital Journal

US to provide $1.29 billion worth of smart bombs to Saudi Arabia

The sale of the bombs will help replenish supplies used mostly in the bombing of Houthi insurgents in Yemen, although the Saudis participated in some attacks on the Islamic State in Syria as well.

 

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The Defense Security Cooperation Agency(DSCA) that facilitates arms sales to other countries, notified the U.S. Congress last Friday that sales of the bombs had been approved. Congress could block the sale but that is highly unlikely. President Obama already has pledged to bolster U.S. military aid to the Saudis as well as other allies in the Gulf Cooperation Council(GCC). The pledge was meant to compensate those countries who were opposed to the U.S. nuclear deal with Shiite Iran. Iran supports the Shiite Houthi rebels in Yemen.

The agency said the sale would help the Royal Saudi Air Force (RSAF) replenish dwindling weapons supplies while providing reserves for future missions. Most of the bombs were used against the Houthis in Yemen. The bombing campaign began in March of this year. The agency said:"This acquisition will help sustain strong military-to-military relations between the United States and Saudi Arabia, improve (the ability of Saudi forces to work) with the United States, and enable Saudi Arabia to meet regional threats and safeguard the world's largest oil reserves."The agency also said providing the munitions showed the U.S. commitment to the RSAF's ability to carry out combat operations. No doubt, as well, the provision of the arms shows U.S. commitment to generate profits for its arms manufacturers.

The U.S. even has sold cluster bombs to the Saudis. Though there is a global treaty banning the use of the bombs, neither the US nor Saudi Arabia have signed it. The bombs have been used by the Saudis against the Houthis in Yemen.

The agency described the items to be provided as follows:The proposed sale includes 22,000 smart and general purpose bombs, including 1,000 GBU-10 Paveway II Laser Guided Bombs, and over 5,000 Joint Direct Attack Munitions kits to turn older bombs into precision-guided weapons using GPS signals.The weapons are made by Boeing Co (BA.N) and Raytheon Co (RTN.N), but the agency told lawmakers the prime contractors would be selected in a competition.The sale is just one of several recent multi-billion dollar sales to Saudi Arabia.

In September the sale of 600 Patriot-PAC-3 air defense missiles made by Lockheed Martin Corp was valued at $5.4 billion. In October the US also approved the sale of four Littoral Combat Ships made by Lockheed for $11.25 billion. The US has supplied more than $90 billion worth of military equipment to the Saudis from 2010 and 2015..

Amnesty International complained that some of the types of bombs the US is providing to the Saudis have been used previously in strikes that violated international law. Last month Amnesty released a report that uncovered a number of attacks that were directed against civilians, and other unlawful strikes that could be war crimes. The group asked the U.S. and other countries to stop selling certain types of arms to the Saudis. A hospital run by Doctors Without Borders was hit but numerous other hospitals have been targeted. Also heritage sites have been damaged or destroyed.

An estimated 5,604 people including 2,577 civilians have been killed since the Saudi campaign began in March. The campaign is attempting to restore the Mansour Hadi government which until recently had been in exile in Riyadh Saudi Arabia. Forces loyal to the government have retaken the port city of Aden and other areas in the south, and Hadi is establishing his government again in Aden. However, Houthis still occupy the capital, Sanaa, and there are fierce battles ongoing. The Saudis have supporting troops from the UAE, Sudan and elsewhere. While there have been several attempts at peace talks so far they have been unsuccessful and the Houthis have objected to some features of recent proposed talks. The Saudi forces are launching an offensive in the Taez area. The conflict has created a huge humanitarian disaster with many people fleeing combat areas or even the country. There are shortages of basic necessities in many areas, particularly those under Houthi control due to the Saudi blockade.