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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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Roundandroundwego · 61-69 Best Comment
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.

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 · 41-45, F
I think the USA regulates and licenses the sale of lethal hardware to other governments rather than manufacturing weapons itself.
SunshineGirl · 41-45, 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!
DogMan · 61-69, M
Well, the government buys the arms from a capitalist manufacturer, and I imagine the Government
marks up the product before it sells to another country, which is also Capitalism.

The profit for those sales should go to the military, or maybe social programs. You would think
the numbers would be available to the public through the FOIA.
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.
jehova · 36-40, M
@Bumbles getting money (profit/commission) from the sale of weapons it refers clients.
The arms Manufacturers benefit from
Our tax dollars via way of the government paying them ( the armaments industry) for the production of their products.
The government does not really
Produce anything bit bullshit and hot air, of value to no one.
DogMan · 61-69, M
@soar2newhighs The company I own sells to the government. We also sell to the city, state, and Military.

We do not give them any special deals, but we also do not profit more than we do from anyone else.

 
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