The Pentagon gets $700 billion per year to spend across all Defense Department (DoD) programs. But the DoD’s purchasing power within that budget is declining, according to Bill Greenwalt, visiting fellow at the American Enterprise Institute and former deputy under secretary of defense for industrial policy.
- Greenwalt said the reduction in purchasing power is problematic when China is able to start producing more ships, missiles and other capabilities than the United States.
- Greenwalt said the defense budget has essentially become a “social program” in its adherence to various mandates and additional expenditures.
- DoD can increase purchasing power by replicating methods SpaceX used to innovate as a commercial company and greatly increase productivity, Greenwalt said.