War Profiteers’ Stock Buybacks: Your Tax Dollars at 'Work'
The Financial Times delicately observes that US defense companies' 'generous buybacks make for an easy target,' implying there's a debate to be had. Meanwhile, Lockheed Martin announced a $14 billion share repurchase program in 2023, while General Dynamics authorized $2.5 billion. One might wonder who's supplying these companies with such robust 'profitability' that they can lavish shareholders.
The receipts are in plain sight: In 2023, Congress approved over $100 billion in aid packages, a significant portion earmarked for military spending that directly benefits these very corporations. For instance, Senator Joe Manchin (D-WV) received $22,500 from Lockheed Martin in 2022. Senator Marco Rubio (R-FL) accepted $18,500 from Northrop Grumman in the same cycle. Their votes on defense
appropriations, unsurprisingly, aligned. The FT frames this as a 'monopsonistic buyer' (the DoD) finding 'opportunity.' Conveniently unmentioned is the lobbying pipeline that ensures the DoD remains a very reliable 'buyer' of endless, extremely profitable 'opportunities.' How many body bags does it take to secure a generous stock buyback?