
He probably didn't fight for freedom and he DEFINITELY didn't know how to run a bureaucracy
I’m generally a pretty cynical and sarcastic person who understands that humans are capable of essentially limitless mendacity, stupidity, and cruelty: it takes quite a lot to shock me. One of the few things in graduate school that I really had a hard time comprehending, in fact something that I might still not truly comprehend, came up in my class on Soviet defense when we were talking about the military spending burden: the Soviet leadership did not know how much the country spent on national defense.
Oh sure the Politburo had a rough idea of military spending (“a lot!!!”) and, yes, somewhere there was a “budget” that had some notional (and ludicrously inaccurate) number of rubles assigned to it, but due to pervasive secrecy, the needless over-compartmentalization of information, and, more than anything else, the distorting effects of non-market price signals* it was literally impossible to work out the exact budget of the Soviet armed forces. The greatest deal of specificity that anyone has ever been able to arrive at are estimates within a range of +/- 3% of GDP which, when you stop to think about it, is not very specific at all (as a hackish example imagine if, in the United States, the government could only say ”Federal spending is somewhere between 34 and 40% of GDP). For comparison’s sake the entire Soviet healthcare budget was roughly 2.5% of GDP, which means that the margin of error for defense spending was greater than the entire budget spent caring for the health of Soviet citizens; that is what it means to be a “low priority” sector in a command economy.
What got me started on this rant was Glenn Greenwald’s typically excellent analysis of an atypically excellent Washington Post report on the terrifying expansion of the national security apparatus, particularly the massive and unprecedented use of contractors for core national security functions. Greenwald highlighted a passage from the Post that should have any genuinley patriotic and/or freedom loving Americans quivering in fear or making plans to move to Canada (emphasis added):
Making it more difficult to replace contractors with federal employees: The government doesn’t know how many are on the federal payroll. Gates said he wants to reduce the number of defense contractors by about 13 percent, to pre-9/11 levels, but he’s having a hard time even getting a basic head count.
“This is a terrible confession,” he said. “I can’t get a number on how many contractors work for the Office of the Secretary of Defense,” referring to the department’s civilian leadership.
Just take a step back and think about that for a second. Since 9/11 the US Federal government has spent trillions of dollars and fought numerous wars that have killed tens, if not hundreds, of thousands of people all in order to “keep Americans safe.” Yet that same government literally cannot say how many people it is employing in this effort (which is very clearly its highest-priority): it does not actually know how many people are being given taxpayer dollars to find and destroy terrorists.
The problem cuts far deeper than a simple failure in human resources management which could, presumably, be rectified by some deck-chair reshuffling and investment in IT infrastructure. As part one of the Post series noted (emphasis, as always, added):
In the Department of Defense, where more than two-thirds of the intelligence programs reside, only a handful of senior officials – called Super Users – have the ability to even know about all the department’s activities. But as two of the Super Users indicated in interviews, there is simply no way they can keep up with the nation’s most sensitive work.
“I’m not going to live long enough to be briefed on everything” was how one Super User put it. The other recounted that for his initial briefing, he was escorted into a tiny, dark room, seated at a small table and told he couldn’t take notes. Program after program began flashing on a screen, he said, until he yelled ”Stop!” in frustration.
“I wasn’t remembering any of it,” he said.
Now as I tried to make clear in my brief, superficial, and utterly hackish overview of the problems associated with the Soviet economic system, the United States cannot be straightforwardly compared to the Soviet Union because, at the end of the day, its costs (while massive) can actually be accounted for: since the Federal government purchases goods and services in the confines of a market economy, and since prices are more or less freely determined by participants in the market, one can say with a fair degree of precision how much it is spending.**
That being said, the parallels between the bloated Soviet defense sector and the bloated US national security state are obvious, striking, and terrifying. Note the overabundance of information, the massive resource expenditure, the pervasive secrecy (even people who had been through the most rigorous and extensive security screening the government can muster were not allowed to take notes during briefings, which reminds me of how during negotiations over the original START treaty the Soviet military delegation made the Soviet diplomatic delegation leave the room because they ”weren’t allowed” to hear any of the technical specifications of Soviet missiles ), the extreme redundancy, and the remorseless compartmentalization of vital data. As Matthew Yglesias, among others, has noted this is a pretty horrific way to run an organization and the only sure way to reform the damned thing is through the one avenue that it will absolutely never accept: by limiting secrecy and opening up information flows.
One can always overdo historical comparisons, people probably started making inflated comparisons to the decline and fall of the Roman Empire while the ashes of the forum were still smouldering, but it is, to say the least, very dismaying to see large parts of the US government become every bit as inefficient, compartmentalized, and opaque as the Soviet Union. Now since the US is a vastly wealthier, more democratic, and more liberal society than the Soviet Union, and since it spends a significantly smaller portion of its national income on the military, there are reasons to hope that things can be salvaged before they truly get out of hand. However the utter indifference of the American public to the sweeping expansions in state power seen over the past decade, and the complete lack of public protest at the fact that the defense budget will continue to grow as virtually all other sectors are subject to freezes and or cuts, suggest that it will take quite a lot to rouse them from their slumber.
*Since the Soviet economy was command-administrative in nature there were no market prices. Thus it was practically impossible to work out what things “really” cost because resources were allocated by government fiat. “Rubles” were simply accounting devices, not a real currency, because they could only buy goods approved and distributed by the state planning authorities. Thus, because it enjoyed high priority, a defense industrial enterprise could use, say, 1,000 rubles to “buy” 2 tonnes of steel, but a construction firm building a, low-priority, hospital might have to pay 2,000, 3,000, or even 7,000 rubles to buy the exact same steel or, more likely, and in the unlikely event that there was actually any steel left after all the defense and heavy industries had taken their share , to buy steel of a noticeably inferior and defective quality. Capitalism certainly has its flaws, but market prices are an absolute prerequisite if a society is to avoid massive and potentially catostrophic misallocations of capital.
** Another major difference between the United States and the Soviet Union, one that I cannot hope to cover in any sort of depth within the confines of a single blog post, is the role played by Communist Party organs which were constructed in parallel with state organs and expressly tasked with “monitoring” (controlling) their work. Thankfully the United States has no equivalent to these (we don’t have a Republican or Democratic Party-run intelligence agency whose only job is to monitor the CIA) though give the absurd redundancies of the intelligence community our system probably isn’t a great deal more efficient.