Private Finance and the Quest to Remake Modern Warfare

Speakers: Dr. Michael Brenes, William Hartung (Quincy Institute for Responsible Statecraft)

Date: 25 September 2024

Speaker Session Summary

There is growing concern among some scholars that the pursuit of economic incentives may push US military technology advancements ahead of the establishment of proper policies and security measures, prioritizing profits over policy. Mr. Hartung added that this rush towards new technological advancements could trigger an arms race among competitors rather than the fulfillment of the US military’s intended goal of deterring conflict, with China frequently seen as the primary adversary to the US military-industrial base. He also questioned whether US industry can produce these technologies as cheaply, efficiently, and quickly as needed. Despite these concerns, the Department of Defense (DOD) has provided funding to both traditional military contractors and venture-backed startups to develop these technologies. The lack of transparency surrounding these deals makes it difficult to determine exactly how much money has been spent, however, with estimates ranging from $6 billion to $32 billion annually. 

Ukraine has emerged as an early testing ground for some of these new technologies, but the test results have been mixed. For instance, certain technologies, like Silicon Valley-made drones, have been deemed fragile and too expensive. Dr. Brenes noted that while technological advancements since World War I have been significant, the promise that technology could eliminate the need for large troop deployments remains unfulfilled. He also critiqued rhetoric from technology startup company CEOs advocating for less regulation to outcompete China, stating that such statements are counterproductive and harmful to US national security. 

SpaceX has received the largest share of DOD funding allocated to startups (81%). While these companies do have notable potential, they currently operate with little oversight and are not required to file reports on how they use their allocated funds. Additionally, many of these startups’ technologies have experienced serious glitches. Dr. Brenes emphasized that now is the time for defense acquisition reform—before defense spending on new technology companies becomes too difficult to manage. Several pieces of legislation have been proposed, including the Department of Defense Ethics and Anti-Corruption Act, the Stop Price Gouging the Military Act, and the Streamline Pentagon Spending Act. These initiatives aim to address some of the transparency and oversight issues within the defense technology sector. 

To view more of Dr. Brenes and Mr. Hartung’s analysis, read their new report, entitled “Private Finance and the Quest to Remake Modern Warfare.”

Speaker Session Recording

Briefing Materials

Link to report:

QUINCY BRIEF NO. 57 JUNE 2024 BRENES-HARTUNG (quincyinst.s3.amazonaws.com)

Biographies:

Biographies:

William D. Hartung focuses on the arms industry and US military budget. He was previously the director of the Arms and Security Program at the Center for International Policy and the co-director of the Center’s Sustainable Defense Task Force. He is the author of Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex (Nation Books, 2011) and the co-editor, with Miriam Pemberton, of Lessons from Iraq: Avoiding the Next War (Paradigm Press, 2008).  And Weapons for All (HarperCollins, 1995) is a critique of US arms sales policies from the Nixon through Clinton administrations. Bill previously directed programs at the New America Foundation and the World Policy Institute. He also worked as a speechwriter and policy analyst for New York State Attorney General Robert Abrams. Hartung’s articles on security issues have appeared in the New York Times, the Washington Post, the Los Angeles Times, The Nation, and the World Policy Journal. He has been a featured expert on national security issues on CBS 60 Minutes, NBC Nightly News, the PBS Newshour, CNN, Fox News, and scores of local, regional, and international TV and radio outlets.

Dr. Michael Brenes is a non-resident fellow at the Quincy Institute and interim director of the Brady-Johnson Program in Grand Strategy at Yale University, where he is a lecturer in history. He is the author of For Might and Right: Cold War Defense Spending and the Remaking of American Democracy, (University of Massachusetts Press 2020). He has contributed to The New York Times, Foreign Affairs, The New Republic, Foreign Policy, The Nation, Politico, The Baffler, Dissent, and Boston Review. Dr. Brenes is currently writing a history of the “War on Terror.”