package of reductions in corporate welfare that
Notes
was compiled by a right-left coalition of taxpayer
and governmental reform organizations and that
1. Information on proposed military budget
explicitly excluded military-related subsidies. For
increases is drawn from Office of Assistant
a description of that package, see Rosenbaum.
Secretary of Defense for Public Affairs,
"Department of Defense Budget for FY 2000,"
9. On subsidies for arms exports, see William D.
Press release, February 1, 1999; and Philip
Hartung, Welfare for Weapons Dealers 1998: The
Finnegan, "U.S. Lawmakers Arm for Budget
Hidden Costs of NATO Expansion (New York: World
Offensive," Defense News, February 8, 1999.
Policy Institute, March 1998). For more detail on
the methodology used to arrive at the estimate of
2. Data on military prime contracts are calculated
subsidies for arms exports, see William D.
by the author and are based on statistics from the
Hartung, Welfare for Weapons Dealers: The Hidden
U.S. Department of Defense, Directorate of
Costs of the Arms Trade (New York: World Policy
Information, Operations and Reports, 100 Com-
Institute, 1996). Both of these publications are
panies Receiving the Largest Dollar Volume of Prime
available in full text versions on the World Policy
Contract Awards--Fiscal Year 1998 (Washington:
Institute's Web site, at www.worldpolicy.org (click
U.S. Department of Defense, 1999).
on "arms control").
3. Statistics on pay and increases in procurement
10. See, for example, U.S. Congress, Office of
in the FY 2000 budget are from "Department of
Technology Assessment, Global Arms Trade, OTA-
Defense Budget for FY 2000."
ISC-460 (Washington: Government Printing
Office, June 1991), pp. 3031.
4. For an overview of recent subsidies and other
favorable policy changes obtained by military
11. Secretary of State, Congressional Presentation for
contractors, see William D. Hartung, "The
Foreign Operations, Fiscal Year 1999 (Washington:
Military Industrial Complex Revisited: How
U.S. Department of State, 1998), pp. 99699.
Weapons Makers Are Shaping U.S. Foreign and
Military Policies," Foreign Policy in Focus,
12. Secretary of State, Congressional Presentation for
November 1998, www.foreignpolicy-infocus.org.
Foreign Operations, Fiscal Year 1998 (Washington:
U.S. Department of State, 1997), p. 486.
5. Quoted in David E. Rosenbaum, "Corporate
Welfare's New Enemies," New York Times,
13. Hartung, Hidden Costs of NATO Expansion, p. 3.
February 2, 1997.
14. Calculations on relative military aid funding
6. For estimates on the costs of corporate welfare,
to Eastern and Central Europe are based on fig-
see Donald L. Barlett and James B. Steele, "Special
ures in ibid., p. 2; and "Your Tax Dollars at Work:
Report: Corporate Welfare," Time, November 9,
FY 2000 Military Assistance Request," Arms Sales
1998, www.cgi.pathfinder.com/time/magazine/
Monitor, no. 39 (February 1999): 67.
1998/dom/981109/cover1.html; Dean Stansel
and Stephen Moore, "Federal Aid to Dependent
15. Quoted in Barbara Opall, "Pentagon Touts
Corporations: Clinton and Congress Fail to
Loan Guarantees," Defense News, June 1622,
Eliminate Business Subsidies," Cato Institute,
1998.
Briefing Paper no. 28, May 1, 1997; Charles M.
Sennott, "The $150 Billion `Welfare' Recipients:
16. Barbara Opall-Rome, "Pentagon Loan Pro-
U.S. Corporations," Boston Globe, July 7, 1996; and
gram Faces Insolvency," Defense News, March 1,
Robert J. Shapiro and Chris J. Soares, "Cut and
1999.
Invest to Grow: How to Expand Public Invest-
17. On "fixing" DELG, see Opall-Rome, "Penta-
ment while Cutting the Deficit," Progressive
gon Loan Program Faces Insolvency." On the
Policy Institute, Policy report no. 26, July 1997.
problems of the DELG program, see U.S. General
7. For another definition of corporate welfare, see
Accounting Office, "Defense Trade: Status of the
Stansel and Moore, p. 2: "Corporate welfare
Defense Export Loan Guarantee Program,"
should be defined as any government spending
GAO/NSIAD-99-30, December 1998.
program that provides unique benefits or advan-
18. Hartung, Hidden Costs of the Arms Trade, pp.
tages to specific companies or industries. It
3436; and U.S. Department of Defense, Defense
includes subsidies, grants, cut-rate insurance, low-
Security Assistance Agency, "Status of DoD
interest loans and loan guarantees, trade restric-
Direct Loans as of September 30, 1996," 1996;
tions, and other special privileges that confer ben-
and idem, "Status of DoD Guaranteed Loans as
efits on targeted firms or industries."
of September 30, 1996," 1996.
8. For example, in early 1997 House Budget
19. "Your Tax Dollars at Work," p. 6.
Committee chairman John Kasich promoted a
23