Why the US Military Costs so Much

Summary by Krater

This video examines why military capabilities like the U.S. Littoral Combat Ship and F-35 experienced massive cost overruns and delays, arguing that structural incentives in the defense industry reward contractors for cost inefficiency rather than efficiency.

From the video

Answers: Why are military projects like the Littoral Combat Ship so expensive and delayed?

• Military procurement
• Defense spending
• Littoral Combat Ship
• Lockheed Martin
• Defense industry incentives

What it concludes

• The Littoral Combat Ship program failed to meet expectations and suffered from major cost overruns, design flaws, and reliability issues.
• Cost-plus contract structures in the defense industry incentivize contractors to increase project costs rather than efficiency.
• The U.S. Department of Defense often awards contracts to struggling companies to prevent them from going bankrupt and losing critical manufacturing capabilities.