Why The U.S. Government Pays Lockheed Martin Billions
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- Опубликовано: 6 дек 2019
- Lockheed Martin is the top grossing defense firm in the world and its biggest customer is the U.S. government. In 2018 alone, the government awarded Lockheed Martin with $37.7 billion in contracts. Here’s why Lockheed Martin is the defense darling of the U.S. government.
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Why The U.S. Government Pays Lockheed Martin Billions
_"In war, truth is the first casualty."_
- Aeschylus
Really cute.
Extremely cute
US manned war aircraft are a waste of it's future.
Stick with satellites & projectiles...and quit provoking others to fire on your narcissism
Chi chan ok wu zetian, any other ancient chinese wisdom?
Fact
Those executives at the top must be making a Killing.
victor nderu you mean they must be killed. Oh hold on, we don’t live in communist country, so corporate snakes can get away with robbing millions.
@@Vladi_AK47 do you even have any idea how much the top hierarchy of communist regime makes ?.
NICE PUN, MATE.
Andrey K. I dunno man. Communism ain't much better. Capitalism ain't perfect but it sure as hell is better than communism.
@@Vladi_AK47 Xi Jinping, president of China, net worth; $1.51 billion.
Because Lockheed gives
back some of that money to the government officials.
id104335409 Lots of procurement officer in the military end up with very lucrative management jobs when they retire from the military in those seem said industries kind of convenient
@@v0id683 you are correct, but the original commenter is also correct
@Dean Quite the contrary
Those government officials in turn use that money to fund their elections and the cycle goes on
@Dean You clearly are not capable of seeing your system for what it is. Good for you i wish i was so cowardly that i could retreat into fantasy.
They forgot corruption.
lobbyism - the legal corruption
@@DarkFe0 wtf do you mean? Corruption is corruption. Don't need to sugar coat it.
We should stop being so polite by using the c-word. Instead, we should call it the b-word for what it really is: bribery. I was in the Army. We had lots full of trucks and tanks no one ever uses just sitting there, collecting dust.
So socialism
@@malcolmholmes2596 socialism would be if the government nationalized the company completely.Everything right-wingers don't like they simply just label it "socialism".
Only printer I know that never runs out of ink.
true, but later on, it will becomes wothless. F-35, and F-22 has lots of problems and over price
@@basook6116 I'd say the F-22 already stopped printing since it stopped production
The F-35 on the other hand...well, you see, maybe it has problems, maybe it is overpriced, but it still has the power of foreign relations and a monopoly on the stealth export market right now, so I doubt its going to become worthless that quickly
@@andrewzheng4038 I thought that Pentagon re started to building F-22 because they have to counter act the s-400 system. thanks for the information. I do agree with you on F-35, but I think that some companies are coming up with better fighter jets with low costs. in terms of speed, MIGs are the fastest in the world. And western countries has their own version of jets
@E BI thought that too
@@basook6116 It is true that some companies are developing better fighter jets, but I still think the F-35 basically has the 5th generation market all to itself. Europe is already moving towards 6th generation which won't fly for at least a decade, and the Su-57, with India pulling out of the program, is likely doomed to the same fate as the F-22. It's mostly down to the J-20 and J-31. I definitely feel the J-31, coming out of the incredibly uncreative Shenyang corporation is a poor man's F-35. It's not nearly as good, but it's a helluva lot cheaper and I feel its short-range won't be a concern for most of its customers. I am very interested in the J-20 though; so far its main knock seems to be poor kinematics due to having the wrong engines, but if it can get the right powerplant it has the potential to be a true contender.
As for the S400, I believe the USAF decided that the best answer is better electronic countermeasure and other avionics. The F-22's technology is about a full decade older than the F-35 so best guess is that they figured if the S400 can see the F-35, it can probably see the F-22 so it'd be better to build upgrades that would improve the entire fleet. There was a rumor a while ago when Japan asked about cooperating to build F-22s with F-35 avionics which sounds great, but ultimately its more costs when the USAF is already looking towards developing 6th generation fighters and increasing emphasis on AI drones (like the XQ-58). 95% of the F-22's tooling still exists in a warehouse somewhere, but the physical factories themselves are already dedicated to building F-35s, which is another massive cost and would slow down even more the delivery of an already delayed product. Ultimately, they decided it wasn't worth it, decided to focus on the next generation as far as entire airframes go and simply introduce some upgrades to tide the current fleet over
ill save everyone 13 minutes of youre life.. Its because war is money.
Well that's the essence of world politics....look what Trump is doing...
Absolutely right.
Why do people complain that war is bankrupting the country then?
@@anom3778 it's making very few people very rich instead of putting that money toward healthcare or infrastructure.
anom because although devaluing another country does add more value to ours, is it right right thing to do? An educated species doesn’t fight and is more successful in the long run 👍🏻
Why ?
- the military industrial complex, that's why !
And gypsies
'murrica
Why? My superiority complex, that's why!
Do u even know what that is? Just a buzzword for u buzzfeeders.
And for good reason. Military technology is responsible for almost all pieces of modern technology.
The military industrial complex influences technological advancement thus defence spending should not be halted.
CNBC really upping their RUclips game.
Ikr
Aamir Chaudhry they do. Stole original format from company man but they evolving
More like CNBC upping their anti-Americanism lol
It's because of the decline in television ratings. Also RUclips just LOVES promoting these corporate channels
oh waiy a sec. is CNBC not a canadian news network?
8:00 Yes, reduce costs by creating monopolies... brilliant.
What a geniuses, aren't they? Those government bureaucrats.
Yes, in this case it costs less if companies merge and work together instead of buying from each other which introduces middleman prices.
@@scinary7052 Just keep telling yourself that. Because competition is a bad thing right
@@scinary7052 Exactly, it does reduce costs for companies if they have less competitors.
@@cnavarrete1999 what are you, a standard oil shareholder 🤣
Defense contractors love it when people are worried about their billions in reported profits. It keeps the public eye off the fact that over 60 TRILLION dollars have simply evaporated in the past three decades.
60 trillion ? Damn
ARMITYLE KHONA at least I know $10 trillion went ‘missing’ and the pentagon can’t explain how and where it is!
The problem with your conspiracy theory is the entirety of US spending over the past 30 years is roughly $60 trillion. So every dime the govt spent is unaccounted for? 🙄
60 trillion that figure is hyperbole at best. Nothing even close to this amount
This is not true
Anyone else genuinely surprised by CNBC's blatant blow at a fellow corporation? As a journalism student, I have to give massive respect for the independence granted to these journalists and producers. Bravo, CNBC.
CNBC was formerly owned primarily by GE, a competitor to Lockheed in the aerospace industry.
@@colonelmustard2652the "was" says it all!!
USA has 800 military bases just think the amount of money they spent to keep this base open 🤔
They have way more then 800
1100 that we know of
Billions for lockheed and canceled Military pension, makes a lot of sense.
pensioners are well fed. 😄
It's almost as if, 9/11 answered the prayers of the Military Industrial Complex.
Almost too perfectly...
Conspiracy theorist much?
@@giant_avocado7973 it's a fact
@@giant_avocado7973 another fact is the double insurance policy taken out and cashed out on the owner of WTC towers 1 and 2 a week before the planes hit...?
Ashton Duda sources?
Good god
Corruption or not, as an engineer I have to give it to Lockheed for building some of the most revolutionary fighter jets in human history.
But remember, universal healthcare is just too darn expensive
cuz the corporate lobbists think it will be too expensive
We have to feed the billionaires by increasing our military budget every year........
Universal healthcare would cost 100k time more than what what Lockheed receives idiot
If a war knock your door, say that you have universal healthcare
Because universal healthcare would cost trillions not billions. You might want to count those zeroes...you are missing three if you think defense spending and health care are similar in cost.
They answerd it in the first minutes. "Defending abroad" yeah, defend America from a villager in afghanistan, who cant read and has never seen a globe.
@Prakash kumar how does one farmer kidnap 3 planes? how does he learn to fly said plane? How comes that he was able to take weapons onboard? It was a complete failure of the US that a couple of people could so easily hijack multiple aircraft. The US has the most expensive Spy agencies yet they slipped past all of it.
@@cuteshadow You just want to blame America for everything, you know how one farmer kidnaps 3 planes? There being more than one farmer that's how. How did he take weapons on board? they didn't have tight security before 9/11 that's how, how did he learn? Getting brief instruction, planes are pretty automated anyone can do it if you have a detailed plan. And the US spy agency is for foreign governments this was an attack that the US wasn't particularly expecting to need to keep at eye out for.
Yep. Because an afghan who can't read and has never seen the world has a small mind. And small minded people are perfect recruits for religious extremists, many of them who hate America. So, what's your point?
@@burtonl7239 it has nothing to do with CIA and Mossad
@Prakash kumar not one,some were from our allies,three or two were from saudi,one was from uae,read the list,most were from middle east,afghanistan just go unluck enough to get hit by bush to gain control of it
My friend is a supervisor of lockheed, he said the employees come to work overtime on the weekend but they just sitting there and chit chat. Lockheed doesn't care because they got paid triple on those overtime from the government. What a wasted of money from the government.
"They got money for wars but can't feed the poor"
The poor already are fed... nobody starves in America. Most homeless people I see are overweight.
Well that's the essence of world politics.... and USA as a front for world capitalism.....
@@tater.5632 "Feed the poor" in this context is more than food, it's Healthcare, education, affordable housing etc. Things that's are always on the chopping board every time budgets are drafted
No money for healthcare. That’s weird right?
@@tater.5632 nowadays low quality carb full food are cheap. they make you easily fat even you don have enough nutrition.... being fat doesn't mean people get enough protein, vitamins and mineral....
Lockheed landed the Polaris missile contract (late 1950s) and became essential to US submarine defense during the "Cold War".
A big part of the problem is we allowed too many mergers so just a handful of companies are doing the defense contracting.
The defense industry has been one of the safest investment in the financial market steady growth with each new presidency doesn't matter Democrat or Republican these companies are set
And then they always say "where are you gonna get the money" when talking about medicare for all or tuition free college.
i thought Stark Industries was the #1 contract to the US government
me too,did they become lockheed?
@@brendanzhang7488 Yeah I think they got purchased a few years ago.
They went away from arms market. now they are working on fusion power and reusable energy.
That's because LM gives heaps of "presents" to the Congressmen and top military brass
[Insert blatant failure to understand US politics here] how original and informed
War Is a Racket is a 1935 book by the United States Marine Corps Major General and two-time Medal of Honor recipient Smedley D. Butler (1881 -1940).
During his 34-year career as a Marine, he took part in military actions in the Philippines, China, Central America, the Caribbean, and France.
Yep. Read his book yrs ago & past away before another war. WWII
Why is the audio quality always so bad when interviewing people?!
Because they are using their home computers
same reason why tv networks are never on the same page as tv studios, they're ran by old people
I don't trust any expert that doesn't have a high quality mic handy.
@@theunconventionaldeal3879 guess that would make me trust worthy then
Very interesting and informative video 👍
Could you possibly make a video about Lockheed Martin Skunk Works and General Atomics UAS Business, would be enlightening 😏
i agree that everything is super expensive...but just imagine the amount of money that goes to development and research...we're not talking about just simply building a plane we're talking about literally coming up with a new technology in the form of a plane...
9/11 = more money
9/11 was staged by Bush for America to enter the Middle East.
Great video! President Eisenhower was not only a great leader but a visionary. He saw the huge problem to our People and Democracy would face for years to come given the focus on military spending. We can guarantee the security of our country without outspending the next 9-11 next higher spender put together. On top of that, we have all the wastes caused by bad contract clauses and political influence. Having politicians dictate how the military budget must be used is inefficient and open risks for the corruption we see today. We have a state of welfare to the military and do not use funds where they are more needed. We could spend 10-20% less and still be the most powerful military in the world, and have a lot of funds to invest in infrastructure, education, healthcare, etc.
Once this old generation of politicians die or is voted out, I hope we'll have a new generation coming with better and more selfless intents.
My dad work for Lockheed Martin for 38 yrs. And I'm so proud if him.Guillermo Vivzs (Memo)
Well LM influences Congress, they got a business to run, and the government has money.
Lockheed senior managers always keep in their back pocket, a card with list of senators/congressmen for each state that has billions in lucrative contracts.
I actually work for a company whose main customer is lockhead Martin, they give us obnoxious money for a few proof of concepts, some become products and many are binned, but the money given each time is lotts.
ya, im sure people in the 60's wanted to buy loghead planes. lol.
Its amazing how a company that made the shittest jet fighters killed all the competition.
Ah yes, the manned missile
Easy to milk taxpayer funds. "Ohhhh such and such country has developed this random weapon, we need more money!"
To protect the country from who when you are the bully
These mini-documentaries must never stop coming.
It's really obvious why Lockheed is preferred. Classified.
Ive always found it kind of funny Orlando's biggest employers are Walt Disney World (happiest place on earth) and Lockheed Martin (makes missles). Lockheed is located literally right next to Universal Studios and the Wizarding World of Harry Potter.
I used to work at that Missiles and Fire Control plant.
It was cool because I had used some of the products from them in combat. But you’re right, just a few miles away is I-Drive.
It’s like Port Canaveral with Disney Cruise ships and Nuclear Ballistic Missile Subs.
Largest employer in Colorado is Lockheed Martin, followed by University of Colorado.
😮
I like how the first 30 seconds sounds like how a congressman would phrase/justify a defence budget increase.
That was very well presented
One sentence: Corruption of the Governemnt by the Military-Industrial
"How are you gonna pay for that"?
The military budget is substantial, and growing, so why isn't anyone asking that question for military spending?
That $37.7 Billion is money well spent as it brought down the price tags of the three F-35 variants to historic lows. The F-35A for example is now priced at $78 million a piece, cheaper than less capable 4th Generation aircrafts. The bulk buy of the Navies subs also brought the prices down. But I do find the overall government spendings on defense too excessive but since the economy so far is doing well ($22Trillion National Debt is another issue with several factors), modernization of the US military will serve well in the event the US finds itself in another conflict with a potential potent adversary such as say, China. We'll never know but it's better to be prepared than be sorry.
It's because they produced the sr71 blackbird, and the f22 raptor, as well as missiles. America will always have the strongest military. And MUST have the strongest military.
The truth is like poetry and the USA don’t teach poetry at schools
Public no but private yes
Investing 700b in defense sounds like they’ve got themselves in trouble.
No it just means we have bigger guns than the other guys
Yeah, sure seems like the USA has alot of dangerous neighbors in North America, they better watch out or they could get invaded.
Neat Noot your sarcasm is beautiful.
Scinary more like shittier roads and healthcare
@@neatnoot214 The USA has dangerous neighbors worldwide. And they don't need to invade to cause US harm. Because US economy is interlocked with global trade, they only need to start a tantrum where they are to disrupt the US economy. So yeah, they need big guns, if only to keep those enemies in their place.
"It's stealth, correct? Better be correct"
They gave the best kickbacks to the politicians that vote for their contracts.
Have y’all seen LM’s stock in the last decade???
Who did?
Only +540% not that much compared to the GAFA
1:40 Who's idea was it to put that weird water dropping sound in the background. Ur freaking me out
hans zimmer, dunkirk
sound of blood dripping
Here we go throwing the F 35 under the bus for the 98th time, anyone who can spend any reasonable amount of time researching the F-35’s capabilities and shortcomings will very quickly find out that it is a phenomenal aircraft.
Lockheed Martin, has built aircraft and technology’s so scary they can end the war even before they start; Which they’ve done on two separate occasions already.
If you ask me yes it is expensive, but if you have a little insight on what it takes to take these technologies and build them you will very quickly see that this level of spending is necessary, and it isn’t without its perks.
This whole report seems to be taking a very narrow slice of a far more complicated story. I can’t help but feel that it seems to be spinning this “military industrial complex“ as being some evil thing that people should not like.
It would be very easy for someone that doesn’t know anything about these companies and what they’ve done for the United States to think that they are no good based off this report.
I mean...have you seen the F-22? That thing is a beast compared to any other stealth fighter
That's why they had to stop making it and make the F35 instead. The F22 no longer makes them lots of money.
We will never know unless it actually gets into a dogfight with other stealth fighters.
@@JarJarBinkz68 true, but on paper it's better than others
@You are ugly but the f22 had few sold
It was never used in combat we can't be sure it's really that good.
Industrial military complex like tulsi has been saying is one big racket!
U.S. needs to nationalize these companies but I guess we have the reserve currency for now so debt is not a problem.
Who pays for it ? I guess American dreamers
The whole fokin world pays for it. American companies are everywhere.
Thin air. US Goverments makes money out of thin air. Which I. Could too.
Japan pays every year $10 billions
Ranjeet Japan is a little puppy
Dreamers are illegals. If they work at all, there's a low chance they're paying taxes. The only way for them to do so is if they have fake SSNs and are actively defrauding the government. I'm quite certain the illegals are not paying the defense budget. That is being paid by the 40-45% of top earners in this country who pay a net tax in to the IRS. That's right. The "rich" pay for the national defense budget (and everything else the government buys).
Because War is Profit especially when you have and endless amount of cash (tax payers)
IMAGINE THIS COMPANY WANTS TO DETHROW THE GOVERNMENT THROUGH SILENT MILITARY COUP
There were informed intellectuals in the 1970s stated that if US military spending continued to increase at current rates it would not be long before it would bankrupt the USA. We are currently spending about 48 cents of every dollar on defense. Plus, a good deal of the costs of Iraq and Afghanistan were financed on loans...national debt.
Yet they cant pay their engineers a competitive salary to keep them smh
why do you need someone to protect you from thousands of miles away, on a different continent is bewildering
Why do they call it the department of defense? Should be called the department of offense.
“other customers”
"other investors" 🤔
"it's stealth, you can't see it." -trump
guess the wall is also stealth...
He is waiting for gloabal warming to build an ice wall
its just fences, and you can see through it
@gothicman03 i got banned fro 50 years on battlefield hoardline fourm for that wet walker joke
there is virtual wall they been developing mostly operated by A.I drones
Do you really need an explanation lol. Defense contractors ARE THE MILITARY!!
Politician: I'll give me an offer I can't refuse
Free college. Free Healthcare. Department of offense, not the Department of defends.
you don't wait until your air bases are being attacked to develop military tech do ya?
@@mmoarchives2542 The military industrial complex creates enemies to fight. The money is waisted. Stop it. Fake enemies. Spend money on priorities now. Free Healthcare. Free public college. Etc.
As a company, is that reliance on a single source of income even healthy? it said that it was a global company but with that much dependency on us defense money no wonder it have to resort to shady deal to kept afloat.
Double helix methodology. That is the reason. BAE Systems is the UK's biggest defense company and 6th biggest defense contractor to the US.
Because LM is making anti gravity space crafts for decades. That is why.
ese companies have so much in common with coffin and tombstone making companies but worse
11:42 😂😂😂😂😂😂😂😂
Long live America ❤️
Bring peace to world
Why can't you get the audio right on the experts portion of the videoit sounds like they're calling in from a cell phone from the middle of the ocean
Why? Corruption! We aren’t protecting the country,they are protecting the profitability of these corporations!😡😡😡
Imagine what that $100billion wasted on defence could do for America, how much healthcare could that for? It's literally insane how much the US spends on defence
yea lol happy dayz
HA! Healthcare costs over a trillion dollars in the US and still doesn't cover everyone,
Thank you for employee me and my husband. We work hard to help keep this country safe!!
The edit of the information is confusing. But Lockheed Martin is one of my favorite companies.
I'm a Republican, but what we spend on the military is ridiculous
Corkfish1 Yeah it really is.
I'm a Republican, and what we need is more spending. Obama's budget cuts put a serious dent in our military, with more than half of our planes sitting in the shop, with no parts. Our service members dying because of it in preventable accidents. Plus letting Russia and China catch up to us in regards to missile technology. Thank God Trump took office, or our military would've continued declining much more under Clinton, it would've gotten a lot worse and we would no longer be the worlds number 1 superpower when it comes to military's worldwide.
Jack in your opinion why does being the number 1 military power in the world matter so much? In my opinion I think there are many better uses for the money and funding government schools to improve the "brain" of the country is one of the better options.
@@Jack3md apparently you dont know anyone working for a defense contractor. I do. Its common knowledge that these union guys sit around most of the day taking break after break. They get paid six figures and get fat pensions to assemble helicopter blades. Given 8 hours to do a job that only requires 4. Then read the newspaper the rest of the day. They get plenty of money they just dont spend it correctly.
Watching S05e12 of madam secretary all over again.
They have also showed this kinda corruption amongst band of bandits ( Congress)
AWESOME
CNBC on a roll: 2 videos / 1 day
i love lockheed martin tech, almost went bankrupt due to drones taking over combat aviation
Did yall know that eisenhower helped pass a law that every 15 miles on the new interstate system we were building at the time (dont quote me on the actual mileage lol) had to be straight so we could land jets in time of war.
Jacob Ramage This actually has no basis in actual fact, according to the DoT...
www.fhwa.dot.gov/interstate/interstatemyths.cfm
Actually, there are countries that have designed portions of their highways to act as runways and set aside areas to act as remote bases for military aircraft. I believe Sweden is one of those countries.
The US doing so was a myth given that during the IKE years, we already had a large number of military air bases that existed from WW2.
There are what you could call overbuilt commercial airports that are near major military bases to be able to support additional personnel and cargo airlift.
I’m glad they are paying all defense contractors big money! They develop things that protect the military and in turn all of us.
can make a list of holding such similar contexts(why.... ), so people can watch this type of clips only from the list,
That background music is irritating
Reason: Big brown envelopes.
plus a 3 millions euro account in France, Belgium, or Netherlands openened to the name of your wife or kids !
these contracts if given to HAL (India) and monitored by US the cost will easily be less than 50%
They hire so many people it's wonderful that's why they did all that big money
So they don’t have to worry about failing middle class
Middle Class kids don't sign up for the military. Which is why the middle class has to be eliminated
James Petersen Yes they do, it’s not even rare.
@@dr.lyleevans6915 The point behind my off handed remark, is that middle class kids don't join the military because it is their only means of economic advancement. They may well join for heritage, honor, god and country, or an education. Which makes them good candidates for the Officer ranks. But if you have a society of privileged dope smoking draft dodgers like several of our last commanders in Chief, and the rest of us are deplorable gutter tripe, it is much easier to raise fodder for the IMC to wage wars over oil and resources. While lining the pockets of the elite.
@@jamespetersen9385 That's stupid, the middle class shrinking doesn't benefit the military they have more than enough soldiers.
James Petersen Oh ok, I understand what your saying. Unfortunately, you are on to something.
This how the money gets back to the politicians' pockets
Daniel Masters no aerospace has manufacturing and offices in every state supplying a lot of high paying jobs. So if politicians don’t fund them they’ll move jobs to another state
The F-35 is the M-4 Sherman Tank revisited. Those who forget history are doomed to repeat it.
I seem to recall that much of the maintenance of the F-35 has to be done by the contractor.
So the Marines, who have millions of dollars of tools to maintain aircraft, fabricate new parts in the field, something they are expected to do in wartime and have done (the first bombracks for the fabled F4U Corsair were fabricated by Navy and Marine maintenance crews at remote bases in the Pacific), those tools sit idle and the maintenance people don't get any practice.
Sick of them doing everything in the name of national security
Put this money for the welfare of American citizens, not the destruction of the Middle East.
just started buying shares on this dip too
Aerospace/Defense compared to Big Tech...
If market capitalization is the best metric of economic power, and CEO net worth the metric of leadership compensation, then by either aerospace/defense falls well short of the influence of big tech.
Market Caps as of today, 12/09/19, rounded to 0.01T:
Apple 1.19T
Microsoft 1.15T
Amazon 0.87T
Facebook 0.57T
Lockheed 0.11T
Boeing 0.20T
Raytheon (pre-merger) 0.06T
Northrop 0.06T
I appreciate the nuanced relationship between governments and defense contractors, and nowhere is this more apparent than in combination of statecraft and sales negotiations that comprises FMS (Foreign Military Sales) agreements with allies.
But what should we fear more, sales of defense systems, or sales of information? Who really has more power? Food for thought...