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If a government “IS NOT A BUSINESS” why does the U.S. sell weapons & “military services” /assets to foreign nations?

America is HUGE in debt yet continues to produce $billions$ to $TRILLIONS$ in military equipment while preforming military operations. If government is not a business how can the federal government claim to be “capitalist”? Market based?
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swirlie · 31-35, F
Keep in mind that the ONLY thing America manufactures anymore are military hardware and domestic gun supply. All other manufacturing has left the US and is manufactured somewhere else in the world, but then exported and then imported by the US for American consumption.

In answer to your question, the US government is the licensing authority for any business that wants to do business in the USA.

That said, the relationship and the resulting profit extracted through State-granted operational approval is known in Economics as "economic rent" (or a monopoly/regulatory rent) secured via rent-seeking or a government concession/franchise.

Differences:

Economic Rent:

Any payment made to a factor of production (or a business) that exceeds the minimum amount needed to bring that service into existence.

When a government creates an artificial barrier or requirement (like a license or approval), the resulting excess profit above a normal market return is the so-called "rent" which the government then receives in return.

Concession or Franchise:

The formal legal agreement where the government grants an arm's-length business the exclusive or approved Right to operate a specific service (like firearms manufacture) or use pubic/scarce assets (military soldiers and restricted military equipment) in exchange for fees, royalties or a share of the profits.

Rent-Extraction/Rent-Seeking:

The broader political-economic dynamic where the State extracts financial profit or value from it's exclusive power to issue operating certificates, which are basically "permissions" to conduct a certain business in the USA.
SunshineGirl · 36-40, F
I think the USA regulates and licenses the sale of lethal hardware to other governments rather than manufacturing weapons itself.
SunshineGirl · 36-40, F
@jehova If people believe Trump is waging a non-essential and wasteful war, the only recourse is through the ballot box. Trump claims that he has a democratic mandate for his "pre-emptive strike".
jehova · 36-40, M
@SunshineGirl agree and recent elections have demonstrated that “democratic mandate” (from republicans mostly?) to be incorrect. As you said the electorate will decide! Yet when Trump loses he screams fraud like a toddler until the public gives into his demands.
@SunshineGirl and it doesn't tax the profits at all!
Bumbles · 56-60, M
It’s not a business. The companies that make the weapons are. Seems you’re caught up in semantics.
jehova · 36-40, M
@Bumbles the government takes kickbacks?
Bumbles · 56-60, M
@jehova I don’t know what you mean.
You're a fascist country, where cruel and domineering manipulative behavior is your first choice, in everything.
Fascists use business and government to become indomitable, then they rule.

 
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