The Disdain of American Business for Military Personnel and their Benefits

“What are you going to trade off — a rich entitlements program, or boots and bullets for the troops?” Richard Spencer Defense Business Review Board (quoted in the Navy Times 2 May 2011 print and internet edition)

The Federal Government is looking for ways to slash funding any way that it can. In light of the seriousness of the nation’s financial crisis previously sacrosanct areas are probably going to be cut.  Military pay and pension portion of the Defense Department budget continues to increase. For the active force due to inflation and medical care costs are the culprits and due to the fact that the pesky retirees just aren’t dying off fast enough.  Obviously something needs to be done otherwise we won’t be able to afford the “bullets” or rather the weapons systems that we use to fight our wars with.

But for a man who has made his money on Wall Street using other people’s money including government bailouts every time our financial, banking and real estate industries due their best to destroy the economy to call military retirement a “rich entitlements program” is simply obscene. If there is anything that has broken the back of the military budgets it is a series of wars that won’t end that somehow make contractors and defense industries rich.  Every day they find new ways to overbill the military for weapons systems that they cannot field on time, or are such money pits that the Defense Department tries to cancel them while our fiscally minded Congress makes the military buy them anyway.

Billions of dollars have been paid to defense contractors that employ a wide scope of companies many foreign owned to provide basic services at overseas bases such as food, transportation and even security supposedly because they can do it more efficiently than the military. The truth is that over the past 20 years the military personnel that would have performed these missions were cut from the force so much so that when we went into Iraq we didn’t have the forces to do all that was needed. Yes we could slap the snot out of the Iraqi or any other military that got in our way but we couldn’t sustain the force without employing and enriching companies like Halliburton, Kellogg Brown and Root (KBR) and dare I say Blackwater.  Additionally our defense contractors have ensured that nearly major weapons system produced in the past 20 years is plagued with problems and cannot be produced on time, are horribly over budget and due to their cost cannot be produced in the numbers needed by the military.  Then there are some projects that are so Rube Goldbergish that the technology needed to make them work isn’t attainable so compromises are made just to keep the programs alive.  Money is spent and weapons are produced that never meet the hype of their supporters in Congress, the defense industries and the army of lobbyists which I think number more than the actual Army. Then there are the weapons systems that are not only money pits but also never are deployed.  Congress and successive Presidential Administrations have made these countries wealthy while killing the defense budget and adding to the massive Federal Debt, which before the wars was actually shrinking, God bless you Bill Clinton.

But now we have a crisis and it is not the corporate welfare queens of the defense industry or the contracting vampires like Halliburton who will feel the pinch it is those who serve.  Yes my friends rather than these blood suckers it is the Soldier, Sailor, Marine or Airman who since 1990 have been deployed who if more that any generation of our military for a great length of time than any force in the history of our country. Count the places Panama, Desert Storm, Lebanon, Somalia, Haiti, Iraq, Afghanistan, Bosnia, Kosovo just to name a few. Then through in things like Operation Southern Watch, no-fly zones, humanitarian missions around the world that we have conducted over the same period.  By the way since these things are expensive and there is not enough money we are told to “work smarter not harder” and “leverage our synergies” so we can cut the force and still do the mission.  We look where that got us. We decided the get involved in massive ground combat operations without the manpower to do them effectively resulting in longer campaigns costing more lives and more money that the wise “smarter synergy” people ever estimated.

And now we have one of these barons of modern American-Global Capitalism which if I can remind you are the same people that have created the financial crises that enveloped the world that had to be bailed out by the taxpayer.  By the way most of these barons of business received exorbitant and obscene bonuses sometimes with the taxpayer’s bail-out money, the very people who brought the house financial house down now call military retirement a “rich entitlements program” while embracing tax cuts for themselves.

Well doesn’t that beat all? Is there anyone but me that has a problem with this? But let’s look at some facts.

Let’s see.  If someone retires at 20 years they get 50% of their high-three or basically the average of their last three years pay, not 50% of their highest pay but the last three years of pay. That was changed back in the late 1970s to save money by pretending to say that you got 50% of your base pay but really a bit less. If you serve 30 years you get 75% of you high three, of course by then you better be set for retirement because most military personnel with skills that are not directly transferrable to the civilian world will not be hired by anyone because they are too old. Mind you the retirement percentage is just from the base pay of the individual, not the housing allowance or other pays that you get for deployments or hazardous duty.  Likewise all those little perks from active duty disappear like state tax breaks for being in the military and by the way the health care costs they go up too. Military retirement is taxable and the Feds, the States and local taxing authorities are quite good at making sure they get their “fare share” of something that they never earned.

Speaking of healthcare what really interesting is that military personnel also pay into Social Security and Medicare. In fact when we are 65 our TRICARE health insurance is supposed to be secondary to Medicare or other insurance that we might have.  Since most of us currently serving are under 55 year old cut off that Congressman Paul Ryan has proposed in ending Medicare we lose that too.  So much for Medical Care unless a veteran is qualified to receive treatment in a Veteran’s Administration hospital.  But those hospitals face an increasing number of patients and a decreasing budget.  Who knows maybe they just give us the Soylent Green option.

Look out if Congressman Ryan and his band have their way as Social Security will go by the wayside too.  That is really a good deal isn’t it? Spend 20-30 years getting busted up for your country and put your family through hell as you constantly deploy to combat zones or on regular operational deployments or training exercises and then get told that the benefits that you worked hard to get are simply a “rich entitlement.” Then to top it all off find out all the money that you have paid into other people’s retirement and health care won’t be there for you.

But let’s take a look at why some of the cost of these “entitlements” is rising. It’s the wars stupid. A lot of money is now being paid to combat-wounded veterans that are medically retired from the service.  No one begrudges them this and I certainly don’t because they have paid their pound of flesh for it. They deserve it and most go through a lot of shit in the medical board and with the Veteran’s Administration to get that.  However, if you add up the tens of thousands of these pensions provided to these men and women that might have only served one or two tours it is a lot of money. This is an increase because in normal times many would have left the military without retirement benefits after they were done with their enlistments. Then there is the cost of paying the survivor pensions to the wives, husbands, children or parents of those that gave the last full measure and died while on active duty.

Some entitlement program huh? An entitlement program that often involves multiple tours in combat zones, separation from family, injuries that build-up simply because we are expected to stay physically active in physically and emotionally environments that wear people down.  Yet Mr. Spencer who served as a Marine Corps Aviator from 1976-1981 a period when we were not at war has the nerve to call this a “rich entitlement program.”  However a one term Congressman gets a retirement and benefits for life. We grind it out for 20 or more years and get told that we are leaches in so many words. Mr. Spencer didn’t use that word but that is exactly what he meant.  In the great World War Two film The Caine Mutiny LT Barney Greenwald played by Jose Ferrer chastised the members of the Caine’s Wardroom following the acquittal of the Executive Officer on the charge of mutiny.

“You know something… When I was studying law, and Mr. Keefer here was writing his stories, and you, Willie, were tearing up the playing fields of dear old Princeton, who was standing guard over this fat, dumb, happy country of ours, eh? Not us. Oh, no, we knew you couldn’t make any money in the service. So who did the dirty work for us? Queeg did! And a lot of other guys. Tough, sharp guys who didn’t crack up like Queeg.”

I don’t want to question the honor of Mr. Spencer but I will. Wait maybe I really want to question his honor so what the hell here it goes. According to his bio on the DOD website Mr. Spencer graduated from private college with a business degree in the middle of a really nasty economy. Gerald Ford was President and since the Vietnam War was over and a strong anti-war feeling lingered there was not much chance of seeing action.  So Mr. Spencer took his business degree and went in the Marines, not the grunts but as a Naval Aviator.   As soon as he finished his obligation and the Reagan boom began he left the service. After all he knew that you couldn’t make any money in the military.  I enlisted in 1981 and when I was commissioned as an Army officer in 1983 I had a base pay of $900.00 a month.  I didn’t do it for the money I did it because of what had happened in Iran and the Soviet moves all over the world.  Back then there was no GI Bill and limited tuition assistance or money for college when you got out of the service. I was not alone there were thousands maybe even hundreds of thousands that joined for similar reasons despite the low pay and benefits. We did it out of good old fashioned patriotism.

I resent the term “Entitlement program.” It is pejorative. It is a wonderful big business and fiscal conservative code word for “unearned and undeserving welfare program.”  Now there are programs that could legitimate targets of such a pejorative term especially corporate welfare but for Mr. Spencer and others of his ilk to lump the retirement pay of career military men and women is reprehensible.

How many military personnel and their families lose money every few years due to moving costs, changing the kid’s schools having spouse have to quit work to move to new locations? Let me see, almost all of us who serve a full career that’s who. But to Mr. Spencer we are the welfare queens and leaches. Again those are my words not his even though that is exactly what Mr. Spencer meant. We who serve and go into harm’s way so Mr. Spencer’s cronies on Wall Street can make the big bucks are the problem.  When a military officer fails his or her career is over and he or she suffers scorn, when the executives that Mr. Spencer rubs shoulders with destroy a company or defraud the public they get big bonuses multi-million dollar buyouts and move on to new hunting grounds.

So now we are on the chopping block. All the services are shedding personnel even as the mission demands have not gone down in order to save money.  In the Navy as we speak there are boards being held at almost every rank to send people home, including junior enlisted personnel.

It is a shame that we have come to this. A nation at war for 10 years and engaged all over the world in war and peacekeeping operations the 10 years prior to this using a smaller force percentage wise than we have had than at any time since the 1920s and 1930s.  Less than 1% closer to half a percent of Americans currently serve in the active or reserve components of the military and many have served one or more combat tours.  Meanwhile nearly 90% of people military age cannot meet entry standards to join.

This, my friends makes military personnel an easy target for bean counters. We don’t have a lot of votes and if people like Mr. Spencer and some in Congress have their way we will be thrown under the budget bus. They will throw us into wars that are unwinnable because we don’t have the resources to successfully prosecute them or the strategy and goals don’t match the forces that are there to accomplish them.  Meanwhile the defense industries and the big war contractors like Halliburton will continue to make money hand over fist. The late Marine Corps Major General Smedley Butler was absolutely correct when he said “War is a racket. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives.” 

In the past month another 50 or so American military personnel have died in Afghanistan nine in the latest attack on advisors to the Afghan Air Force just this week. The total losses in Iraq and Afghanistan combined are now over 6000 dead and almost 43,000 wounded not counting those suffering from mild to moderate Traumatic Brain Injury and the tens of thousands of others that suffer from PTSD.  Of course this does not count those that have died on their return to the United States due to suicide risky behaviors caused by their experience in combat.  Neither do the numbers count those that succumbed to their wounds after their return to civilian life or in the Veteran’s Administration system.  God knows how many of these uncounted casualties of war there are but remember this is just another “entitlement program” according to Mr. Spencer.

Meanwhile as Rome burns the Legions continue to serve while the world that the politicians, diplomats and business leaders put together falls apart. Wars and crises abounding into which they will gladly send us. The Middle East is threatening to explode and Mr. Spencer and those like him would call us parasites leaches and welfare queens, again my words not theirs even though that is exactly what they mean and call the benefits that we have sacrificed for over 20 or more years of service a “rich entitlement program.”

In fact as this drumbeat from the business leaders advising the Pentagon continues people will begin to believe it. Already polls are showing the American people think that the military budget needs to be slashed in order to pay for their entitlements.  We know that the defense industry, the lobbyists and the contracting Giants will suffer the least in this, as always it will be the men and women that have volunteered to do the job that no one else wants to do that will feel the brunt of the cuts.

We have been at war for 10 years with an 11 year lead up to it. In a sense we have been at war or heavily engaged in peacekeeping, humanitarian or actual war for 20 years. Your Soldiers, Sailors, Marines and Airmen are remarkable. In spite of an unending war, deployments that never seem to end and being forgotten by a population more caught up in the problems of Lindsey Lohan and Charlie Sheen, their own financial worries or trying to demonize their political opponents in our perpetual election cycle. Even so they serve selflessly and with distinction.  They don’t deserve to have their retirement called a “rich entitlement program.”

When I see the son’s of the wealthy that inhabit Wall Street and other financial centers say this I become incensed.  Many were born into wealth and all make themselves wealthy on other people’s money usually while exporting the industrial base of the United States overseas because they say that American workers are overpaid. Many simply see the military as the government arm which guards their overseas operations but really hold us in contempt and for the past 40 years have thrown the servicemen and women of the country under the bus if there is a possibility of them having to pay more taxes.

To read about such comments from businessmen and politicians I am reminded of a quote of General John Buford played by Sam Elliott from the movie Gettysburg:

“Meade will finally attack… Straight up the hillside, out in the open, in that gorgeous field of fire. We will charge valiantly, and be butchered, valiantly! And afterwards men in tall hats and gold watch fobs will thump their chest and say what a brave charge it was…I’ve never seen anything as brutally clear as this.”

Yes we will continue to serve and many will continue to die as the vampires of Wall Street consider those of us who serve as leaches and characterize military retirement programs as a “rich entitlement program.” They will thump their chests and say how much they support the troops but such words will only come from their marketing departments hoping to gain the military market share.

The attitude of Mr. Spencer and those like him needs to be confronted and challenged at every turn or they will dishonor those that serve so selflessly.  We need more men like Smedley Butler.


Padre Steve+


Filed under Foreign Policy, History, leadership, Military, national security, Political Commentary

11 responses to “The Disdain of American Business for Military Personnel and their Benefits

  1. John Erickson

    I’m hopeful that more returning vets will get elected to Congress. We need a reality check for our lawmakers who have become completely separated from the military personnel they claim to serve. When members of Congress push to purchase more C-17s that the military doesn’t want, when requirements for a new fighter (the F-22) were changing on a daily basis while F-15s fell from the skies with wings failing due to old age, when a purchase order for such a key aircraft as a tanker is constantly rehashed by lawmakers trying to get the most jobs for their state – all these and more show that, despite the boilerplate rhetoric, the people in DC are NOT supporting our troops. Yes, the big businesses are over-inflating the cost of fancy weapons systems, which is truly unforgivable – but in VERY small recompense, they are for-profit business. (That doesn’t forgive their abuses!) But Congress is supposed to be in the “business” of making sure the military has all the tools needed to defend our country. If we can get some more veterans into office, I hope that they’ll be able to re-introduce common sense, to procurement AND to military benefits. Military toys are nice, but despite the advances in UAVs, without the person in the field, you DON’T have a military presence, and you therefore have no military power. Congress and big defence contractors have lost sight of THE most important “weapons system” this country has – our fighting men and women.
    And don’t fear, Padre, there are a lot of us who would give our last nickel to support and care for you and your brothers and sisters in arms.

  2. Jeff

    Gee for starters, I graduated from a private school and served in the military across the Carter, Bush, Clinton and second Bush administrations. Your “common man” elitism expressed in your sneering description of Mr. Spencer is really tiresome and non productive to the issues at hand. Your honor is not sacrocanct at the expense of Mr. Spencer’s.

    The US Military like that of the British before it and the Roman Empire of the distant past is populated by brave and proud men and women.
    You serve at the pleasure of civilian leadership. You seem to think that “entitlement” is a blank check. It’s not and I for one am not owed anything by anyone for my service and I would still do it all over again.

    Note that General Butler railed against the Military Industrial complex and if that is to be reigned in, it will by necessity require reductions across the board and that includes manpower and budgets.

    Politics, the military and international affairs do not lend themselves to simplistic answers. War is painful, service is hard and peace may be a challenge. You cannot expect to sail through without change or criticism.

    • padresteve

      Thanks for stopping by and I do appreciate your service to our country. I’ve never been accused of being a “common man elitist.” Funny how people of privilege don’t like it when someone points it out. Yes I am well aware that I serve at the pleasure of civilian leadership but I do not view military retirement as an entitlement because it is the product of great sacrifice which we as veterans earn. Obviously you know nothing of me and have read little on this site. I am not simplistic but I find the people that make money off of our sacrifice to be what I said that they were. I deal with men and women broken by war and since we have for all practical matters been at war or engaged in significant military operations since 1990 I find it troublesome that Mr. Spencer uses the term entitlement. I understand the complexities of the diplomatic, intelligence, military and economic factors of national security policy. I not only have a Masters Degree in Military History but am a graduate of the Marine Corps Command and Staff College. I went a bit over the top on this but I also saw how we dealt with veterans post Vietnam and just how many brave men from other nations were used and abused by their governments and then left with nothing when the finished, Kipling’s poem “Tommy Adkins” is an apt reminder of how business and society view the military. Call me what you want and think of me what you will but military retirement is not a “rich entitlement program.”
      Again thanks for stopping by,
      Padre Steve+

      • Jeff

        The costs both human and financial for providing for one of the most powerful military organizations in history are myriad. Its dismissive of you to brush off opposition or questions much less the honor of someone else. I don’t particularly like some of what Spencer has to say, by the way, but if the guy was a Marine pilot including launching off a carrier, he’s been in harms way.

        The elitism comments about someone else who served in a different time and place than you or attended a “private university” still smacks of a kind of elitism wrapped in the struggles that one may endure. Slam Spencer for being misguided but tone down the value judgements. He was a Marine and earned that title which does not include being graded for his service or education by someone that did not walk in his shoes. Spencer might learn a lesson in your shoes too for that matter.

        I’ve had several contacts with Catholic Chaplains over the years and also Chaplains that served on the line and in the pulpit. That is the number one attraction to looking in at your blog since those like you often are better grounded in things spiritual as well as the reality of service.

        So you are right, I don’t know you nor do you know me but personal commentary on both our parts does open itself to alternative points of view and not a path lined with unquestioning accolades.

      • padresteve

        Sorry to get back so late. I do go over the top sometimes. Honestly I know that things need to be on the table. But it was Mr. Spencer’s use of the pejorative term “rich entitlements program” that set me off. I have no doubt that he put him self in harm’s way in lowest bidder aircraft during the lean years of the 1970s. That for me is not the issue.My thoughts went back to the movie “An Officer and a Gentleman” where Louis Gossett Jr as Gunnery Sergeant Foley tells the Officer Candidates that before they can fly for United Air Lines that they have to go through him. Of course that movie came out while I was in my pre-commissioning training at Ft Lewis in 1982. Anyway, you are most gracious and please understand that even though I went over the top on Mr. Spencer it was not really about him but what he said.

  3. John Erickson

    Today’s news from Military.Com: “Troops would receive a 1.6 percent pay raise in January and Tricare fees for veterans would be held steady under a defense budget plan released by House lawmakers on Tuesday. The pay raise is slightly above this year’s 1.4 percent boost but roughly half of the typical increases service members received during the last decade.”
    It’s not about retirement benefits and “excessive entitlements”, but it would be interesting to compare it with standard COLA applied to Federal employees that just push paper for a living.

  4. Scott

    Have you seen the Defense Business Board’s proposal on military retirement? It’s ‘interesting’ reading. What most people forget in these situations is that the military is NOT like any other job. That’s why the benefits are different. I went into private industry in 2000. Almost from day one I missed the sense of purpose and contribution. After a year I came back in, I was lucky, I know a lot of folks that can’t get back in after they leave. Military benefits are an easy target for budget cutters because so few people have served or understand. They only see the numbers presented and are swayed by the ‘apparent’ lack of fairness.

  5. John Day, Oregon

    just a comment about this website……..
    The white text on the black background is really tough on the eyes. I won’t be back!

    • padresteve

      Just a note…I was due for a redesign, thanks for pointing this out….check out the new look.
      Padre Steve+

    • johncerickson

      John- I would argue that any strain encountered is worth what you will take away from this, and most any other, site. I find many sites hard to read, being both near-sighted and cursed by a lack of funds for a decent monitor, but I find what I get from them worth the effort. I would encourage you to return, regardless of this site’s format.
      And I hate to do this to you, Padre, but I’d have to vote for the old layout. But feel free to ignore what I say – I try to ignore myself as much as possible! 😀

  6. Pingback: Sequester Is Here and I Feel a Sermon Coming On: Padre Steve Hammers the War Profiteers and their Political and Religious Supporters | Padresteve's World...Musings of a Passionate Moderate

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