People just keep parroting this nonsense about money being allocated to Ukraine being the problem when the actual problem is lack of industrial capacity in the west to produce weapons and ammunition at the rate they’re being consumed. The west has now largely run through the existing stockpiles, and lacks the capacity to produce more in time. Mainstream western media now openly admits this https://www.theguardian.com/world/2024/feb/15/rate-of-russian-military-production-worries-european-war-planners
Allocating more funds for Ukraine isn’t magically going to make stuff like artillery shells appear out of thin air.
That’s interesting. In one breath The Guardian is saying money but I guess what you’re showing me is The Guardian indicating it’s more of a production issue. I guess I could read the new link you’re sharing but I’m going to guess it doesn’t really cover how Russia is outpacing the western world.
The whole thesis of the article is basically that western private industry driven industrial complex can’t compete with Russian state driven industry because it’s not profitable for companies to do so. Russia was able to do things like plan for surge capacity and to keep large mothballed factories ready for use even though it didn’t make financial sense to do so. Western military defence contractors are not willing to do this because it affects the bottom line negatively.
Furthermore, as it becomes increasingly evident that Russia is winning the war and the whole thing isn’t going to last that much longer, the companies have zero incentive to invest into building large new facilities that will only be used for a short time.
This war is basically invalidating the whole free market model.
So basically another version of guerilla warfare, right? The US is trash at guerilla warfare. Thinking Afghanistan and Vietnam, off the top of my head. We don’t even fuck with Central America on the ground. Just economically. It sounds like Russia’s figured out a way to fight outside of the free market … which is honestly funny as fuck when I think about how shitty the defense contractors in the US are for perpetuating death for cash. And here’s Putin, perpetuating death for lesser.
Winning the war, that’s just fantasies. Even now when Ukraine can’t shoot close to what they need the Russians can’t make any remotely decisive offensives. They just don’t have the capability for that. Best they can hope for is to keep what they have gained and mine the hell out of all ground in-between the lines lol
Well allocating more funds for Ukraine is kinda the solution. The issue is that, even now, arms spending is not that hot. And the arms industry are “afraid” to scale up production if they don’t have long term contracts. Aka they want to profit as much as they can. So allocating funds and signing large long scale contracts will make the arms industries ramp up their production, solving the ammunition scarcity and so on.
Allocating funds is not the solution when you lack industrial capacity to convert those funds into actual weapons and ammunition. Here’s what actually happens in a scenario where you allocate funds and supply of a commodity is limited:
In October, NATO’s senior military officer, Adm. Rob Bauer, said that the price for one 155mm shell had risen from 2,000 euros ($2,171) at the start of Russia’s full-scale invasion to 8,000 euros ($8,489.60).
The reasoning is that arms manufacturers are not willing to “take the risk” with expanding their industrial capacity, hence their demand for long term contracts. When they start supplying the war will end and their profits will diminish.
Exactly, they’re taking all the chances to earn more money on the war.
Historically the free-market has never attempted to do anything except maximize profit. The way the contracting system works in the Us, you never have to actual produce anything to get paid, all you have to do create a shell company that will produce the thing you are contracted to produce. When the shell company can’t produce the thing, you blame it on the suppliers of the shell company, and then you pocket the contract money. At no point would shells ever be produced.
Haha indeed. The whole point of capitalism and the free market is to maximize profits. Seeing increased prices for shells is neither surprising since an increased demand mean higher prices.
That wouldn’t work in the EU though, doesn’t matter if your supply company can’t deliver, you still have the responsibility to deliver and if you don’t you’re liable and have to pay back.
