US envoy criticizes defense firms for prioritizing profits over military readiness

World News

1 year ago

News sources:

Credited from: SCMP

Rahm Emanuel, the outgoing US envoy to Japan, claims that American defense companies prioritize stock buy-backs over national security.
He argues this focus on profits has led to significant delays in weapon shipments, adversely affecting US military readiness and alliances.
Emanuel stated, “The US defence industry is a bigger risk to America’s security than China,” emphasizing the need for accountability among contractors.
He advocates banning stock buy-backs for defense contractors that fail to meet delivery timelines as a potential solution.
Current geopolitical tensions have increased demand for military products, yet major contractors spent $18.9 billion on stock buy-backs compared to $4.1 billion on capital expenses in 2023.

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