Does The Pentagon Resemble General Motors?

From The Small Wars Journal:

Todd Harrison, a fellow at the Center for Strategic and Budgetary Assessments, wonders whether the U.S. Department of Defense will need a financial bailout, for many of the same reasons General Motors needed one.

His essay (also posted at the Stimson Center’s excellent blog on national security spending) lists the similarities. Like GM, the DoD has personnel costs, including generous fringe benefits, that are weighing down the budget and making it more difficult for the Pentagon to adapt to changing circumstances. Second, like GM, the Pentagon’s lengthy and turf-protecting decision-making process has resulted in acquisition programs that have not adjusted to changing times. Third, the slump in the economy is going to limit the Pentagon’s “revenues” just like it is limiting GM’s.

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My Comment: There are a lot of differences between the Pentagon and GM, but still this is an interesting article to read, and it does make one think. The comments on this article at Budget Insight deserve to be read also.