1. Large military build-ups: $2 billion cost overrun on the development of C5-A cargo plane reported to the public by Ernest Fitzgerald due to poor operating efficiencies in defense industry. He pointed out how large suppliers felt secure in not complying to cost-cutting plans but small contractors were willing.
25% firms hold 50%of all defense contracts and 8 firms conduct 45% of defense research.
2. Technology creep: The arms are not only growing in size, it is also becoming better. The development of a new missile or one that can target more accurately, by one country, can upset or destabilize a diplomatic negotiation. Sometimes this fad for modernization leads to undesirably consequences. The F15 fighter planes were supposed to be fastest and most maneuverable of its kind but most were not available for service due to repairs, defects and lack of spares. Engineers should be beware of such pitfalls.
3. Impact of secrecy: Secrecy poses problems to engineers. Engineers should be aware of the answers to the following questions:
Should discoveries of significance to military be informed to govt.? Can they be shared with other researchers, in other countries? Should they be withheld from the scientific and public community? Will the secrecy in weapons development will also serve to hide corruption or their mistakes in defense establishments? Can secrecy help the promotion of weapons systems without criticism or interference from outsiders?
4. Effect on economy: Every dollar spent on defense produces less jobs than what could be provided for by using the resource on other neglected sectors such as education and road development. May be a changeover by training defense engineers to use their designs, processes and techniques to bring about better, competitive civilian products is what would be the most appropriate thing to do now.
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