Melman was right 40 years ago when he first published.  He is right today.
The people just don't seem to care.

What a waste.

arthur
-----Original Message-----
From: mcandreb [mailto:[EMAIL PROTECTED]]
Sent: Friday, January 17, 2003 8:51 PM
To: [EMAIL PROTECTED]
Subject: [Futurework] FWD: Ralph Nader "The Pentagon Connection"


Published on Friday, January 17, 2003 by CommonDreams.org
"The Pentagon Connection"
by Ralph Nader

I wonder how Seymour Melman feels these days. For over half a century,
this Columbia University industrial engineering professor (now emeritus)
has been researching, writing and speaking about the massive
overspending on the military portion of the federal budget and how this
waste is de-industrializing America, costing millions of jobs and
starving the investment in public works -- repairing the crucial
physical capital of America.

Recently, he prepared a memorandum called "The Pentagon Connection"
where he recounted the massive redundancy and costliness of various
weapons systems -- such as the next wave of fighter planes, missiles,
submarines and aircraft carriers -- and the opportunity cost so adverse
to the domestic needs of our country. Remember, the U.S. no longer has a
major opponent that used to justify huge military budgets. Both Russia
and China are converting quickly to the state capitalistic-oligarchic
model and the Soviet Union is no more.

First, Professor Melman cites the Report Card for America's
Infrastructure that was issued by the American Society of Civil
Engineers. (asce.org/reportcard). One and a third trillion dollars are
estimated for the repair of twelve categories of public works, including
schools, drinking water systems, sewage systems, airports, public
transit, bridges and roads.

The Engineering society found what any person who observes -- great
needs coming from great disrepair and decay. Adding $618 billion for
repair of U.S. housing and railroads brings the capital improvement
needs to a $2.0 trillion market, he notes.

Mr. Melman, whose knowledge of U.S. industry is legendary, adds:"Every
manufacturing industry whose products are required for repairing and
modernizing America's infrastructure is left out by the federal
government's military plans." And expenditures.

The military economy drains the civilian economy and this trend has been
accelerating into what Melman called a "huge change" in the American
economy. He writes: "This deindustrialization has happened so quickly
that America's capacity to produce anything is seriously undermined. For
example, last year the New York City government announced its plans to
buy a new fleet of subway cars. Though this contract is worth $3-4
billion, not one U.S. firm responded. Of 100 products offered in this
fall's L.L. Bean catalogue, 92 are imported and only 8 are made in the
U.S.A."

"Closing U.S. factories has not only left millions without work, but has
also diminished the U.S. production capability required for repairing
our broken infrastructure," Melman says. Melman doesn't mention it in
his memo, but previous studies have demonstrated that a million dollars
in civilian investment creates more jobs than a million dollars in
military weapons systems.

The states and cities are reporting deeper deficits. This year, the
states will be over $60 billion in the red. Taxes and tolls are going
up. Necessities are being cut -- outlays, Melman points out, for
schools, libraries, fire and police departments, sanitation department,
child welfare, health care and services for elderly people. But there
are hundreds of billions for Soviet-era type weapons driven by the
weapons corporations and their campaign cash for key members of Congress
who decide the distortions of your tax dollars.

Recently, Bob Herbert, a columnist for the New York Times, interviewed
the well-known financier, Felix Rohatyn, who was involved in the
response to the City's fiscal crisis in the 1970s. The current fiscal
crisis ofthe states and cities is, to Mr. Rohatyn, very serious.

Mr. Rohatyn told Mr. Herbert that he believes that a $75 billion-a-year
program of federal assistance to state and local governments combined
with a $75-billion-a-year tax cut for working people would provide a
substantial boost to the economy, and over time would result in the
creation of several million jobs.

But, in spite of polls (as well opinions expressed by military experts,
like retired General Anthony Zinni) showing that a large majority of the
American people do not believe that President Bush has made the case
that Iraq threatens the U.S. nor do they want him to commit our troops
unilaterally, the White House chief is willing to spend at least $150
billion and incur casualties pursuing this obsession while ignoring
life-saving needs in our country.

For a copy of the entire Melman memorandum, send a self-addressed, large
stamped envelope to Professor Seymour Melman, Department of Industrial
Engineering, Columbia University, 500 West 120th Street, New York, NY
10027.

###




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