http://articles.moneycentral.msn.com/Investing/CompanyFocus/WhosProfitingFromTheIraqWar.aspx Who's profiting from the Iraq war? Military contractors that set up utilities, prepare food or make bulletproof vests are getting a big boost from the conflict. Here's who's getting the most money. Latest Market Update August 31, 2007 -- 15:00 ET [BRIEFING.COM] Stocks continue to trade sideways heading in the final stretch, but buyers remain in complete control of the action. All 30 Dow components are trading higher, led by 3.7% surge in Home Depot (HD 38.41 +1.37). It has... More advertisement Article Tools E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Michael Brush In a few weeks, Gen. David Petraeus and the Bush administration will report to Congress on the progress of the U.S. military's troop surge in Iraq. But some of the war's winners are already clear: military contractors who supply everything from bodyguards to bombs, clean socks to ready-to-eat meals. "For the companies involved, this has been a real gravy train," says William Hartung, who tracks defense spending for the New America Foundation. The White House has proposed military spending of $647 billion in 2008. Adjusted for inflation, that would be the highest level since World War II -- topping even expenditures during Vietnam and the Reagan years, calculates Hartung. The current request for Iraq-related spending for 2008 is $116 billion, which would raise total Iraq war spending to $567 billion. Who's getting all that money? Sometimes it can be difficult to tell. "There isn't good visibility on where the money goes," says Steven Kosiak of the Center for Strategic and Budgetary Assessments. But you can get a snapshot of who's been getting a good chunk of the Iraq-related spending in two ways. Talk back: What's your view on companies that profit from the Iraq war? The first step is to scour a vast database of more than $400 billion in annual government contracts, more than 70% of which are from the Department of Defense. It's called the Federal Procurement Data System. I turned to a private contractor of my own, Eagle Eye, for some (free) expert assistance in navigating the database. More from MSN Money Why politicians are worth buying Are you investing in terrorism? Invest in the new mercenary army Invest in uranium? Not yet Does military service still pay? Eagle Eye mined the database for all Iraq-related contracts from 2003 through 2006 (the most recent year for which numbers are available). That catches everything from spending on base maintenance and bulletproof vests to ammo and combat boots. We tallied the numbers to find the top 10 companies out of thousands of contractors. The second step is to look at the Pentagon's own budget to see which companies are building the major weapons systems that support the war in Iraq. The Top 10 It's no surprise that KBR Inc. (KBR, news, msgs), a division of Halliburton (HAL, news, msgs) during the years we examined, tops the first list, compiled by Eagle Eye, with $17.2 billion in Iraq-related war revenue for 2003-2006. KBR is one of the largest construction and energy field-service companies in the world. It has a long history of collaborating with the U.S. government on war-related construction. Videos: Recent news on Halliburton In Iraq, KBR has been working on base construction and maintenance, oil-field repairs, infrastructure projects and logistics support. KBR got about a fifth of its revenue from the Iraq war in 2006, according to our calculations. "We are proud to serve the troops," says a KBR spokeswoman. "We are providing the troops with essential services and the comforts of home that allow them to stay focused on the dangerous and important missions they face daily." [Cont on page 2]
Not really . . maybe a bit but the reality is .. . AMERICANS Dying in New Orleans AMERICANS do not have any health Care AMERICANS are in poverty AMERICAN Infrastructure is collapsing If you took the money KBR made off the war it would go along way toward resolving some of our problems at home Rocket River "War is good for business" - Farengi 34th Rule of Acquisition
"war is a racket" - general smedley butler "In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist." - general dwight eisenhower
Listen, I know what you guys are thinking, but really it's just a conicidence that the former CEO of Halliburton has been vice-president for the entirety of the Iraq War and that KBR, a division of Halliburton, has made $17.2 billion from the Iraq War. Those two things are not related in any way.
How about the US military? I don't recall seeing many pictures of KBR employees running around Vietnam but I could be wrong. Since when did the US military become incapable of serving its own meals, maintaining its own bases, providing its own clean water, etc.?
Yes the Pentagon is historically great at realizing efficiencies from this type of thing, remember the 600$ toilet seat from the 1980's? Well, get ready for the 1 million dollar shipping bill, to ship two $0.19 washers. Inflation has taken a toll! http://www.washingtonpost.com/wp-dyn/content/article/2007/08/16/AR2007081602230.html
That's such bull. People in the military get paid squat, they do those jobs because they receive training, they get free tuition, or because they believe in the cause. The KBR guys are there because they get paid a lot. I've heard they're paid nearly $100k just to drive a truck in a supply convoy. Do you think enlisted men get paid $100k? Explain to me how driving supply trucks through occupied territory in the most volatile region in the world is more efficient in the private sector, thanks.
That may be out of necessity. There were a lot more soldiers available for Vietnam. Basically, your hatred of Halliburton is so intense that you would rather be drafted and sent to Iraq than give KBR employees hazardous duty pay?
since the vice presidents former company realized they could make alot of money doing the jobs that the military traditionally handled themselves. its called outsourcing you hippie! nevermind that the vice presidents former company served water w/ fecal material in it to our troops and has constantly been caught overbilling the government and the taxpayers, yet are still on our payroll!
or maybe your hatred of the troops is so intense that you would rather see private contractors working for the vice presidents former company making about 5 times as much money as the troops for jobs that the military used to handle themselves?
You are stuck on this Cheney thing, so would you oppose it if a non-Halliburton company did these services?
We don't have enough soldiers to drive trucks and serve meals as we invade and occupy another nation? Maybe that's a hint to the Command in Chief that he's out of his league. KBR employees hazardous duty pay - $100,000 Americans volunteering to join the military and serve their nation in war - <<<<< $100,000 The efficiency of the private sector in a war zone... priceless.
bankers make the most, they finance the war, next would be the KBR type company- defense contractors but I don't think the money is the most profitable part for the govt.
Bankers??? I doubt it man. It's not like the government takes loans from Bear Stearns, or am I missing something here.
