Gates claim of proposed DOD savings are not savings. In his big defense savings announcement he states that pulling $4B in procurement of the F-35 adds up to the big total.
“So where did we come up with the $78 billion for the top-line reduction?
* First, the approximately $54 billion in DoD-wide overhead reductions and efficiencies I described earlier in this statement, which included a freeze on all government civilian salaries;
* Second, roughly $14 billion reflecting shifts in economic assumptions and other changes relative to the previous FYDP – for example, decreases in the inflation rate and projected pay raises;
* Third, $4 billion of savings to the Joint Strike Fighter program to reflect re-pricing and a more realistic production schedule given recent development delays.”
According to Bloomberg, DOD has a letter about F-35 program fixes, $4.6B will be added to development. Worse, while Gates states that we should cancel the troubled F-35B STOVL for the USMC if it doesn’t work out in 2 years, the taxpayer still has to fund the purchase of F-35B mistake-jets.
How can anyone take the Gates “savings” announcement seriously?