Tillerson Economics and the Saudi Arm Deal
ProGowthLiberal concludes ‘no net increase’ on Saudi Arabian arms deal:
The $109 billion in arms sales is for the next decade amounting to an additional $11 billion in new exports on a per annum basis. So we are talking about only 0.06% of GDP in new exports but this only gets worse if we take Tillerson at his word that as the Saudis spend more on their own defense, we spend less. In other words, exports rise by $11 billion per year and Federal purchases fall by $11 billion per year. Good news from a deficit hawk perspective but no net increase in U.S. aggregate demand. So Trump’s “jobs, jobs, jobs” amounts to nothing but his usual political posturing.
Not Tillerson, arming the royals is neocon- bi partisan credo!
If US contractors techs leave the kingdom the stuff is useless!
Fred over at EV linked to the Boeing F-15SA “sales”. $29B (delayed because the R&D was slow) biggest FMS in history.
Roughly $200M and airplane!
Makes F-35 look like a bargain.
F-15SA, air defense for al Qaeda and dropping US cluster bombs on starving waifs in Yemen.
“In other words, exports rise by $11 billion per year and Federal purchases fall by $11 billion per year. Good news from a deficit hawk perspective but no net increase in U.S. aggregate demand.”
What utter nonsense. If the U.S. government does not spend that money elsewhere, it will be spent by the people who don’t have to pay that $11B in taxes. If the government just borrows $11B less, then that $11B will be lent to someone else.
Warren,
Why do you say that if the government does not borrow $11 billion, someone else will?
Trump headlined $100M plus in sales to the sponsors of al Qaeda.
The deal is in the works for years has to do with Clinton pay for play he attacked last year.
The $11B (2.5% of the DoD contracted budget) is to be added to the amount the pentagon slops in the military industry trough, the walls are high enough at more than $400B a year.
When that new stiff gets there, it will generate about 2 dollars for each sale dollar in trying to keep the shiny turds sold by Boeing Lockheed and Raytheon working.
Total revenue for the US’ military industry trough on the order of $300B over 35 years.
You pay it at the pump!
Well, Jerry, most people with extra money lend it out at interest.
“Jerry” seems to be another ‘bot like “Joel” sent out to parrot the DNC talking point of the day.
Warren and Sammy obviously have no answers.
I answered your question, Jerry. Do you have another?
Let me ask you one. Do you really think that if the U.S. government does not spend that money, no-one else will?
Sorry, Warren. Not playing your game.
That’s what I expected, Jerry.