Defence economics, and the US production advantage

Sponsored by Ground News:
Compare news coverage. Spot media bias. Avoid algorithms. Be well informed. Download the free Ground News app at: www.ground.news/perun
Video info:
In some of my earliest coverage of the Ukraine war, I noted that just comparing defence spending between countries was extremely difficult and not all budgets are created equal.
Today following a Patron vote, I'm going to try and unpack that a little more by diving into the world of defence economics and production 101. In doing so, we're going to try and answer some questions.
Why does America dominate the global arms market?
How can a 5th generation fighter be cheaper than those decades older than it?
And why do so many nations chose to buy in arms rather than build their own despite the fact it leaves them highly reliant on other countries?
Get ready for an "exhilarating" mix of economic theory, budget figures, and many, many stories of countries failing to build a good jet engine and just buying one from General Electric instead.
This video is not financial advice, and I'm not an American, but if you're going to talk about scale in high-tech military production, you have to talk about the US of A.
Patreon:
/ perunau
Caveats:
Just because I throw up an image of a system when describing challenges - that does not mean I think whatever I've put on the slides is a bad system. The Avro Arrow was a masterpiece - but it's a good picture of risk because it ended up cancelled and a bunch of resources were wasted for example. Arjun is a good example for competitive advantage because, while India was willing to back it domestically, Arjun 1 had nothing like the export successes of the major players (Abrams, Leopard, and the Russian Ts)
Figures from groups like the AIA are taken and presented as is - I obviously have not independently audited Lockheed Martin's annual report or the AIA facts and figures
As mentioned in the video - I have focused on comparing defence spending to other sorts of defence spending. I am not seeking to do opportunity cost analysis against other forms of spending.
I'm also not arguing for higher or lower military spending in this video, I'm just trying to explain why the impact of a procurement budget is highly contingent on where stuff is manufactured, and things like that.
Sources:
Lockheed Martin annual report 2021:
www.lockheedmartin.com/conten...
Stockholm International Peace Research Institute Arms Transfer Database:
www.sipri.org/databases/armst...
F-35 price declines:
Lockheed Martin (graphic)
AIA facts and figures:
www.aia-aerospace.org/report/...
News coverage:
www.defensenews.com/air/2019/...
India T-90S procurement:
www.defensenews.com/land/2019...
Impact of Defence Spending on Economic Growth - RAND
www.rand.org/pubs/research_re...
Timestamps:
00:00 -- Opening words
01:33 -- What am I covering?
02:46 -- SPONSOR: GROUND NEWS
04:20 -- What's in a defence budget
05:56 -- People Costs
07:03 -- System Costs
09:04 -- System Sourcing
09:36 -- Example 1: Bring it in
12:29 -- Example 2: Domestic production
14:58 -- The make or buy decision
16:49 -- The hard decisions
17:58 -- Foreign Import
19:01 -- Kit Assembly
20:28 -- Licensed/local production
22:22 -- Domestic productions
23:07 -- Why not indigenise
23:28 -- Barriers to domestic production
23:56 -- Complexity and cost of entry
27:03 -- Indigenous fighter programs
29:16 -- Manufacturing scale
31:50 -- Development risks
33:59 -- Competitive advantage
36:55 -- Case Study: The US advantage
37:21 -- Dominant consumer & producer
39:59 -- Production costs
41:13 -- Scale
43:17 -- Learning curves
45:03 -- Risk mitigation
46:54 -- Accumulated advantage
49:40 -- American arms ecosystem
52:42 -- A tale of two aircrafts
55:26 -- A question for another time…
55:57 -- Conclusion
57:13 -- Channel update

[@PerunAU]

This video is really a kind of thank you to all the Patrons who have supported me for months, and who voted for me to take a dive at a topic which I probably wouldn't have the courage to look at otherwise (it's a bit niche compared to covering an active war). I'd also like to say thanks also to returning sponsor Ground News (these guys have been happy to back me even when I cover niche topics, and I thank them for it): Compare news coverage from diverse sources around the world on a transparent platform driven by data. ground.news/perun

[@Cris_the_coder]

Why would you upload? Right now It's 7:00 a.m. in the morning and I have not gone to sleep yet bro

[@bobfred159]

Great as always! Would love to see some videos on Australia if you ever get the time.

[@Cris_the_coder]

Guess I'll listen to it while I go to bed 😊

[@crazydrifter13]

It would be very nice to see such a video on China too please. Could China repurpose it's factories like USA did in WW2? I remember Ford factories were producing tanks.

[@deborahbarnard1641]

I really enjoy your more niche videos. Thank you for doing them!

[@KingsandGenerals]

The content is very, very good, but beyond the content, it is difficult not to notice a great work ethic - you are going to have a big channel!

[@joshuaclark4047]

Amazing work

[@bobfred159]

Colab between you two?

[@lairdcummings9092]

He's building a deep foundation.

[@PerunAU]

Thanks so much. Love the channel. If you ever need someone with a procurement lens, let me know.

[@Jhossack]

Coming from you, that means something.

[@Negativvv]

The fact so many sit through what are essentially power point lectures on a website where the average video is a few minutes long is continually remarkable. I've got a busy job and children yet I usually watch these videos within a day or so of their release every week without fail.

[@NightOwlinNewOrleans]

Same

[@MrCealicuca]

:)) indeed, and considering that i've become less and less likely to plow through 1 hour long PP presentations at work without getting... well... sleepy is all the more incredible. @perun: wish you all the best and keep the approach, you'll rock with the 35-45 (or more) segment ;)

[@_gungrave_6802]

I watch them while playing some games. The videos are so good they distract me from the games and I end up losing lol.

[@falloutking2819]

Honestly, I kind of hope to see this spread to other channels on other topics like healthcare. Some of these lectures are on par with college classes I’ve taken

[@tardvandecluntproductions1278]

KZbin has quite the large audience of people that listen to video's while doing something else at the same time.

[@ericcherry4184]

One of my buzz phrases is "Things are almost always more complicated than they seem at first glance, yet all complicated issues can be broken down into manageable and understandable components." So, once again, thank you for breaking this very complicated financial/technological ecosystem down into more manageable and understandable components!

[@Sk0lzky]

The basic rule of actually getting things done/learning them :v

[@paulvarn4712]

How to eat an elephant. One bite at a time.

[@psyeseease2649]

> yet all complicated issues can be broken down into manageable and understandable components Usually only after you've spend way more time trying to do them the hard way and failing and have started to see those manageable and understandable parts that it could've been broke up into.

[@ED-es2qv]

Cool. Let’s break down the physics inside a black hole.

[@spinecho609]

Unless the problem is system dynamics, where by definition the problem is the relationships between simple components leading to unexpected effects in the larger scale

[@jiriseidl4376]

The Gripen vs F-35 is a very good example. We’ve had the Gripens for years, they were a showpiece of our military. In a few years, when the lease ends, we’re buying two squadrons of F-35s. The arguments for are cutting edge technology and interoperability. According to our media, it’s basically a done deal, only question is what weapons, parts etc will be part of the package.

[@kimmogensen4888]

Denmark is buying F-35 to, the test pilots is very exited, and it’s systems makes it able to guide missiles from other platforms to its target

[@johanmetreus1268]

@Cancer McAids The aircraft itself is actually mostly irrelevant. Aircraft procurement is a political affair to a much higher degree than most other things. The core question is, will you buy an aircraft from a small country that still have a lot of parts that require the blessing of the USA to allow sales, or will you buy from USA and thus gain closer ties in the security political stage? Investing in the F-35 will not only get you a very capable aircraft, more importantly it'll significantly increase the likelihood of USA providing actual help in case things take a turn for the south. On the other hand, an aircraft like Rafale will not give you White House credits, but it also doesn't leave you depending on the Big Dog in the West for spare parts and upgrades while still maintaining ties to the western democracies. Alternatively, you can buy aircraft from Russia or China to be utterly independent of the West, but you will at the same time be bunched together with those dictatorships which might not be the best course of action depending on what kind of political and economical values your nation strive to uphold.

[@TWFydGlu]

@Cancer McAids I wouldn't say the upgrade of Gripen-E is modest. After all it doesn't require pilots to sit in the planes. But the production cost is high.

[@_gungrave_6802]

​@Cancer McAids Kind of hard to compete with the US when it comes to aircraft designs because of the US' production and R&D capacity. Its why so many countries buy US military aircraft over the decades. Its simply cheaper because of all the things to design and put into production for your military an aircraft is one of the most expensive. A good example being the B29 bomber program during WW2 cost 2 billion while the manhattan project cost half that. If you account for inflation that would be 32 billion and 16 billion respectively in todays money.

[@Dowent]

For Czechlands, it would make way more sense to try to buy off the current gripens and maybe augment that with something more modern, but I guess the F-35 does sound nice and it will sure look nice when it's sent to Slovakia and Baltics as air support, so it might boost prestige.

[@jsb1585]

Don't ever apologise for getting into the particulars of a fairly niche subject such as this. The growth of your channel over the last few months should be indication enough that there is an audience for that sort of content. Continue to do what you do- well researched work with a steady release schedule- and people will keep supporting you. The effort doesn't go unnoticed.

[@SamtheIrishexan]

Exactly. You have found your niche. The best business opportunities come from exploiting niches

[@TevelDrinkwater]

Perun sells out, does reactions to funny animal videos. But seriously, there is a dearth of in depth, detail oriented videos. They are out there, but they each have their niche focus. Personally, I learn so much listening to Perun. Certainly some of it overlaps with other educational KZbin topics, but Perun sideways brings lots of information and data. Need to check if there is a Perun podcast.

[@PerunAU]

I do still get nervous before releasing the more niche topics, but I take huge comforts from the fact that there clearly is a dedicated audience here that is happy to stick with me and support content like this.

[@alganhar1]

@@PerunAU You are doing great. You have the intellectual maturity to tell people you may be wrong, while giving us well researched material that you have obviously spent time on, and that you obviously have some knowledge of, and you never try to force your opinion down other peoples throats. Frankly you are one of the best commentators on the current situation out there, even if you are niche BECAUSE of those things. Too many people think the phrase 'I don't know' is a weakness, rather than the strength it actually is. So keep racking them out, and I sure as hell will keep watching. Because you know how to say 'I don't know'. Those three words are important to me because you being able to say that means I know you will never replace 'I don't know' with random bullshit. And because you know how to say I don't know, your Opinion actually matters more. There may be times I do not agree with it, at least not entirely, but its an honest opinion based on good analysis, not regurgitated factoids that so many 'commentators' rely on. And even if I do not agree I can respect that. EDIT: Besides, some of the subjects you have covered while Niche have provided me with a huge amount of food for thought. Your videos on corruption in the Military, and on German Procurement for example I found very interesting. You are looking at the entire situation from a viewpoint that is uncommon, and you have yet to post a video that did not make me think. I am by trade a Marine Ecologist/Evolutionary Ecologist. The point in telling you that is I LIKE content that makes me think.....

[@telmnamm7549]

@@PerunAU I'll admit, some of these more niche topics get me nervous but I can't help but love what you talk about every time. You can just tell you know exactly what you're saying and you do an excellent job painting a broad picture. Cheers from USA

[@arrielradja5522]

Can you make a video about the Ukrainian army modernization program from 2014-2022? It's such an interesting topic that people mention it all the time but never actually explain them.

[@warmetalpacifist]

That would be a good topic

[@theonlylauri]

Nations that build an army from next to nothing are interesting. There always are some really smart and fascinating innovations, as well as mistakes both perfectly understandable and quite stupid. At the same time, they never start from exactly nothing. There always is some remnant of pre-existing military tradition (in this case Soviet), and foreign (NATO) influences. Having to recreate an army also usually coincides with a crisis that has both domestic and foreign policy elements. The interplay of these factors never fails to be both as fascinating as it's tragic.

[@ojomaze7777]

ohh, very interesting. I'd watch that.

[@Chironex_Fleckeri]

Excellent idea

[@geoffreyparker5775]

Great topic suggestion.

[@NinjatoBlade]

God every single time, absolutely phenomenal. The military industrial complex in America is often portrayed in a negative light in American media as its “in the business of promoting war,” so it’s always interesting to see an unbiased examination and appreciation of what it actually is. Ngl I was actually laughing at one point in the video when you were explaining purchasing power and just going “holy shit, who figured this out, it’s brilliant”

[@gearhead743]

The US military industrial complex is very much a bad thing, but one which is arguably necessary. I personally wouldn't dislike it as much if it wasn't owned by a country like the United States which has tendencies to use its power in stupid and greedy ways. Alot of that money could be going to reducing other problems also. Stuff like welfare and other supports for people with disabilities, such as veterans.

[@user-cx9nc4pj8w]

@@gearhead743 A country that prioritises never doing anything potentially wrong over pressing an advantage and consolidating it's position is not going to become #1 in the world. Or #2, #5 or #10. If most countries were in the position the USA is, I highly doubt they would be much better, if at all. And apart from Iraq and Afghanistan most USA defence spending hasn't been bleeding too much money for the benefits it provides. There are other ways of getting money for important things, like not doing tax cuts, that the budget is justified mostly, if not completely.

[@VVayVVard]

@@gearhead743 I honestly find it hard to believe that any other major power (Russia, China) would have been as responsible as the US has been had either achieved similar status. Recent events indicate as much, as do their domestic and foreign policies in general. The only countries I could imagine wielding comparable power more responsibly are ones that are highly unlikely to ever (re)develop substantial military-industrial complexes of their own, such as modern-day Japan.

[@Nothingseen]

The Military-Industrial Complex has always meant that instead of using our industrial capacity for other things, like building massive high speed electric rail all over the country, we're building weapons. We're *building* those weapons though, and there is simply nothing like what we've been doing. Our capability to create and distribute arms is utterly unmatched.

[@VVayVVard]

@@Nothingseen It's worth noting that investments in the arms industry do tend to result in increased know-how that is useful for civilian applications as well. The Global Position System being one obvious example. Rocket technology being useful for deflecting incoming meteorites, as recently confirmed by NASA, is another. And the unfortunate fact is that, even if the US didn't want to start trouble, as we now know, there are other countries that do, so having a strong military isn't really optional.

[@apollyon1]

this feels like a window into a world I've known about but never been able to see before. I feel like I'm back at university. great lecture.

[@AnimeSunglasses]

The kind of lecture that might get you to choose a related major!

[@methuselah8885]

@@AnimeSunglasses which your country's military will almost certainly pay your tuition for

[@OtterTreySSArmy]

I'd like to add something to the whole US production advantage: ALL manufacturing centers in the US by law are required to be compatable of military production. We have this thing called the DPA(Defense Production Act), and once it's invoked, all domestic production of non-essential consumer goods are halted and are converted to military production. The government owns gigantic warehouses full of production equipment that in a time of war are sent out to various factories and those lines pump out whatever they're designated to do. Also large consumer manufacturers in the US are defense contractors as well. GM, Ford, Chrysler, and Boeing(obviously) all have defense divisions. I work in a car factory, and if the DPA is invoked, we become a tank factory within a month. Most countries in the world don't do that, nor can they do that.

[@PD-we8vf]

Unfortunately NAFTA, Clinton and Obama closed and destroyed most manufacturing plants in the USA.

[@RonOhio]

In the late 70's and early 80's I ran an Acme Gridley that had been used to machine artillery fuse bodies. It still had the brass plaque riveted to the side of the main casting.

[@vsGoliath96]

Don't fuck with the American military industrial complex. It's, like, the one thing that we're reeeeeeally good at.

[@triadwarfare]

I'd imagine that as more and more industries move offshore, I wonder if the US still has capacity to manufacture other things than tanks and armored vehicles?

[@tonysu8860]

I really hope we (the US) doesn't have "warehouses full of production equipment" That'd be the most wasteful use of funds to try to anticipate needs and to build and store equipment that would likely be obsolete within a few years, long before they could ever be used. More useful would to have plans at the ready to create any necessary equipment and convert assembly lines to using the new equipment. Newly built machinery should operate far better than anything held in cold storage which would likely need to be rejuvenated and certified before it could be put to use. Remember, anything in cold storage can be any kind of condition when they see the light of day. The Russians are experiencing this with their tanks being pulled out of cold storage, we in the US found many of the protective health gear for pandemics in unusable condition or need of repair when Covid hit.

[@csec95]

A big, big factor is simply "know-how," the US has been building jet aircraft for over 80 years. If your country hasn't, the cost of starting an aerospace industry from scratch is ENORMOUS. Just look at China, they just in the last couple years began producing turbofan engines that meet the performance of Russian engines... from the 90's. And they were trying for decades.

[@rampageTG]

Yea which to the Chinese credit is something you do have to admire them for.

[@deriznohappehquite]

Sometimes it’s literally just Jeff, who used to be a machinist but is now the EHS manager.

[@sharwama992]

@@rampageTG same as the Russians it’s easy to talk shit about how bad Russian tech is until all the factors stated in the video above is considered .

[@WangGanChang]

reality is a lot more complicated than that, the Russia didn't stand still offer the same engine for each contracts. After testing of WS-10 on a J-8II in 2002, Russian made various improvement to the design withlatest verison (AL-31F M2 in 2012) offer 16% more thrust, reduced weight and much better reliability the orignal engine (designed in 1981) offered to China in the 1990s. What really happened was compeition (and funds) spurred Russia to finial improve the existing designs, and Russia was able to outcompete Chinese contractors in offering a better and more reliabiliable product until last couple of years.

[@homijbhabha8860]

I think India is more of an apt example with their Tejas program which is now seeing success after almost 2 decades of groundwork from literally nothing, even the testing facilities had to be built from scratch, China is more advanced in this regard although Indian aerospace now can build 80KN engines and Medium weight fighters indigenously and also with regards to drones and helicopters there is a certain know how, but compared to the US we are still an infant, there are many podcasts with the scientists explaining the challenges they faced but just like America poured billions into their aviation industry to make it what it is today, we must do the same keeping the US as a role model.

[@cethironwood]

Serving in the US Army during Desert Storm I had the direct observation of what raw military power is, and it's application. In 1991 there wasn't any country close. Thirty years later, and watching the top of the line Russian tank turrets going "Space Shuttle" daily, says the same. Kudos to our Defense manufacturing.

[@tsugumorihoney2288]

Because you country bring "democracy" all over the world, and steal money from countries where you spread your "democracy", your country on war rails since WWII ended

[@tsugumorihoney2288]

@Steven Allen assaulting of big cities is never easy

[@ericsmith5919]

@Steven Allen Depends on your definition of "take", I suppose. Taking over Baghdad? Difficult. Turning Baghdad into a parking lot and taking over the pile of rubble? Easy.

[@arminius6506]

@@ericsmith5919 Russians can surely do this to Keiv with their bombers

[@ericsmith5919]

@@arminius6506 I wouldn't be so sure of that. If they can't even keep their trucks fueled and running I'd hate to see the state of their strategic bomber fleet. And good luck dropping dumb bombs on a city in contested airspace.

[@dylanthomas12321]

As a retired former journalist and consultant who covered aerospace and defense, and other SciTech for 30 years, I must say this is one of the best deep dives I've ever seen or read. That's true of most of your presentations. Thank you.

[@julesgro8526]

Perun, your work here is the single best thing to come out of this whole bloody affair. These could straight up be official presentations at NATO defense college or some such. Keep it up my man!

[@toyuyn]

And Perun is just an outsider looking in (and a 'casual' one if I recall correctly, i.e. his job is unrelated) There's undoubtedly a lot more to learn from leading experts and people in the industry.

[@wom_Bat]

@@toyuyn he confirmed he studied this in school and heavily implied he's involved in the civilian side of the military industrial complex and procurement system. We just don't know where. He's said it's a complicated sector with a small club and a lot of opinions. He's definitely in the sector, no amateur.

[@uhthin]

This. You're the single best resource out there right now. Thank you.

[@jeremiahwaller1283]

I wouldn't be surprised at all if some instructor at a war college were showing these videos in class.

[@WarblesOnALot]

@@toyuyn G'day, Um, not quite. The sum of what he has admitted to, is that he either has worked for, or does work for the Australian Defence Force, perhaps possibly maybe as a Contractor's Consultant...; and what he gets paid to know about appears to be the underlying Systematic EcoGnomic Analysis of the effect of the Procurement of any one particular Weapon, or System - or the adoption of any particular Policy/Strategy/Tactic..., on the rest of the Defence Force's Funding and capability to maintain other, competing, systems, weapons, and or Tactics, Strategy or Policies..., via the underlying inexorable effects on the rest of the EcoGnomie concerned. My guess is that he's very Very VERY careful to not ever say ANYTHING within these YT Presentations which might piss off either his Employer or his Employer's Clients. So, if you thunkeded that this was a surprisingly gifted Amateur - then. No. What this is, is the musings of someone who actually KNOWS what they are talking about - limited to what may be discussed without effecting their Job-Security and/or their Security Clearances... We are very fortunate that he is being permitted to post these carefully generalised Power-point Analyses... Such is life, Have a good one... Stay safe. ;-p Ciao !

[@equesta]

Who knew that a 1 hour PowerPoint on procurement economics would be so engaging? Awesome stuff as always Perun!

[@KSmithwick1989]

Yeah, this channel's detailed analysis reminds me of a broader, more technical version of SubBrief. It can legitimately can be considered a professional brief.

[@als1023]

Same thoughts, thanks for posting !!

[@LittlePinkBowser]

Imagine pitching this to a TV exec

[@als1023]

@@LittlePinkBowser That's Mission Impossible and why all these other venues have produced so much content. And then some guy gets an idea, produces a few segments, and wham, world wide audience for fairly long, ( by KZbin standards) segments about obscure data related fields of study.

[@Alsadius]

In terms of long-term continuous production periods, my favorite example is the world's slowest assembly line - the aircraft carrier line in Newport News. They do change what they make sometimes, but it's been basically in constant production for over half a century. And that's created a huge knowledge base that nobody else has.

[@Rhino_Aus]

As an employee of the Australian military aerospace industry, this video hits *hard*...

[@PerunAU]

But it's all worth it when something comes together.

[@Rhino_Aus]

@@PerunAU especially when you do something world beating for export

[@williamyoung9401]

So THIS is why we still have pot holes...

[@jonathanmichaelsmith9012]

@@williamyoung9401 Americans don't have free healthcare, while we have shit roads.

[@virginiaoflaherty2983]

@@jonathanmichaelsmith9012 What state are you from? I am from Maryland and we have very fine roads. It takes $$$ to build and maintain roads. And while the US military budget is only about 3.2 % of GDP, state and local taxes build roads. People in states like Arkansas don't want to pay taxes, thus they have shit roads. The federal government does not pay for your local roads. They deal with big roads in support of interstate commerce, part of our supply chain. Ask your state representatives why you have shit roads in your state.

[@TekGriffon]

The thought experiment on how the Ukraine war is going to long-term impact the Russian arms export business sounds fascinating. It'll be a lot of theory-crafting, but I'm excited to see what hard data you pull in to support your theories. Thanks for another great video, man.

[@Asptuber]

Yes, please make that video sometime soon!

[@2paulcoyle]

Serbians rejected Russian S300 air defense missile system and went Chinese .

[@DogeickBateman]

@@2paulcoyle So they opted for the self-exploding toaster instead of the self-immolating toaster. Nice.

[@HolyReality891]

Must be Sunday. The fates have blessed me with another hour of military acquisition education 😀😀

[@cookiecola5852]

True, i dont even check dates or weekly days, i just check when a new video oh his is out or how long since his last video came out

[@tirushone6446]

Until I found this guy I never thought I would be so exited to watch a one hour slide show about defence economics

[@ttcc5273]

A loaf of bread, a jug of wine, and those slideshows about system costs. 😁😁

[@christophedelvaux9363]

The fates favour us, we should press our advantage

[@carlcramer9269]

The mark of good content is that you care to listen to it even when its hard.

[@romvoid5177]

Never have I come across a creator that can make these kind of topics such an intreesting piece to listen too. Your method of speaking and explaining anything from the extremely complicated situations, down to grade school lunch time simplicity and doing so in a normal style of conversation instead of the normal explainer style of content. It's great.

[@owd200]

Once again, some of the best content available anywhere. This is honestly as interesting, informative and in depth as a lot of content from places like CSIS and ISW.

[@tonifakerman9639]

As soon as you brought up spending vs cost I knew comparative advantage wasn't far behind. I think the most important thing this channel does is make economics tangible

[@TheJacobshapiro]

The Korea vs. Japan comparison is an interesting one in this respect. SK and Japan both are highly developed countries with strong electronics and heavy industrial sectors and lots of experience producing licensed US equipment. However, Japan’s government has legal restrictions on arms exports meaning the Japanese defense sector remains a less-competitive cottage industry made to serve Japan domestically, often at low volume and high cost. Meanwhile, SK can export and are starting to get more and more success with products like FA-50 and K2. With this, combined with stronger domestic defense spending due to the country’s neighbor to the north, it can make fighter jets and tanks at extremely competitive prices.

[@tonysu8860]

I don't consider either South Korea's or Japan's indigenous fighter development programs to be what they appear to be. Because neither program makes much economic sense, I doubt that either are really intended to manufacture aircraft. Instead, I suspect they are intended to be the rationale for R&D, and for that reason the US is perfectly willing to transfer highly important technologies to both countries. Japan reportedly is designing its own NGAD based on the original YF-23 fighter that lost to the F-22, which is reputed to so advanced that the winner was almost decided by a coin flip. The YF-23 is supposed to be superior to the F-22 in a number of respects which has never been publicly proven but I'm sure the US wouldn't mind a trusted partner country like Japan that is willing to explore extending those capabilities that were designed in the mid to late 1980's.

[@senecasenior9574]

I once read that Mitsubishi builds 2 tanks per year, although this number probably only refers to a single type. They obviously could build more, but with the Japanese Defense Force being their only customer, it's more important to them to keep the line running steadily, so they keep the knowledge on how to build tanks. This must come with a premium price tag, though.

[@oohhboy-funhouse]

The type 10 MBT is not what it seems. It is built for Japanese needs/doctrine, much like the Merkava is for Isreal. Type 10 isn't an MBT you fight in a peer conflict like Ukraine. Most tank guns will slice through its basic configuration. What is does do is fight in Japan really well. It's an urban tank with a big enough gun where it doesn't have to concern much about RPG-7 from above, guided missiles fired from km away or massed tank formations. It can cross every road, bridge, highway, and handle mountain areas in Japan. Nimble, transportable with modular armour packages for more protection in more aggressive uses. An Abrams in Japan is a pill box in Japan. It doesn't match the requirements, which Perun mostly left out with good reason. It's the weeds he is not interested or good with and gets in the way of the core thesis. The discussions where people will argue which tanks is better with X mm of armour our this ammo or this engine until your eyes bleed. Japan also has a long history of building their own tanks, rockets and aircraft. They naturally want to maintain that.

[@mustlovedragons8047]

Well Japan has to biuld giant robots to fight giant monsters. So it's not a fair comparison. :)

[@grzegorzswist]

SK recently made a big deal with Poland to export a lot of FA-50 and tanks. And they were competing with USA.

[@truckerallikatuk]

That Saudi F15 contract is pretty much a "Just add personnel" contract. They're getting everything they need for those aircraft with the only added costs are the people to use and maintain them, and maybe additional munitions if they get into a fight.

[@MM22966]

Not even that, really. Vinnel Corp. and some other PMCs supply most of their ground support the last time I checked. The Saudis like to fly their big expensive jet fighters, but Allah did make them to turn a wrench.

[@chrissmith2114]

@@MM22966 Allah gave Arabs oil, but did not give them brains..

[@Coondawgwoopwoop]

I’m so happy there are still creators like yourself still on this platform. It really makes my day when I see you’ve posted a new video. Everyday we live is a day we get to learn.

[@blessedsnake8246]

Never thought I'd be so excited about military economics lecture

[@Darhhaall]

As a Czech I can confirm that you have nailed it with the Gripen and F35 comparison. We have been running Gripens for almost two decades and they are great planes - but now when choosing where to continue after 2027 two weeks ago we decided to go for F35 instead of new version of Gripens. Despite that this will need massive change in infrastructure and training. F35s are simply much better and not than much more expensive fighters.

[@navyseal1689]

I thought F35 was expensive as heck, but its cost actually very close to other competitors, not much difference

[@briangasser973]

Acquisition costs are one thing, but maintenence/operation costs of the F35 vs Grippen is a huge difference. For most countries not facing Russia or China, a simplier platform with more training is better.

[@HungPham-qq6me]

@@briangasser973 Or simply go human resource rout throwing men ww2 Russia style at the enemy. Works 100% 50% of the time.

[@mobiusflammel9372]

@@briangasser973 Air defense systems are proliferating, which is why stealth (and therefore 5th gen platforms) is becoming an increasing necessity for anyone looking at potential future conflicts. It's not just Russia & China that present those kind of threats anymore, and that shifting reality explains the broader move away from procuring 4th gen planes.

[@kimmogensen4888]

Denmark go f-35 to, it cost a lot but the system it has is so much better than the competition.

[@codydunger5895]

I had to stop by and say that normally I watch your presentations as soon as they are released but this time I had to wait because I was on vacation. I almost broke out my phone and watched this presentation while I was in a remote cabin. I'm pretty sure the family wouldn't have been happy with me though. In any case thanks again for the presentation, although this topic deviates from the content that brought me to your channel I enjoyed it very much. Content like this will keep me coming back even when the headline topics like Ukraine resolve themselves.

[@maciekzajac4745]

This is by far the best military technology/armaments/inner workings channel on youtube. This has been my hobby for 17 years and I have a PhD in an adjacent area - I know how to find my info. But I have never encountered a source simultaneously so accessible, comprehensive and focused on the really important bits as Perun. And this within first six months of the channel's existence. Chapeau bas.

[@SittingOnEdgeman]

This is honestly fascinating because it explains some of the most poorly understood aspects of the defense industry - most notably it helps explain American (and to a lesser extent, Russian and Chinese) "soft power" in the Defense industry. The closer your alliance with America, the more stuff of ours we let you buy, the more cost effective your own military becomes - and the more dependent you are on maintaining that relationship with America. It also helps explain why AUKUS was such a diplomatic break between France and Australia+USA, because the French industry probably isn't as resilient to losing such high-technology connections and contracts. I also previously had been a major skeptic of the F-35 JSF program in that it felt like a political decision more than a military one. This definitely helped me grasp a lot of the benefits of unifying the fighter choice between military branches, and why it makes sense from a cost perspective - you can probably afford twice as many F-35s as you could afford a "Bespoke" Army or Navy aircraft. And having more platforms probably outweighs having one that's 5% better for your particular application.

[@TheMhalpern]

a fascinating microcosm is the Space Industry, especially the differences between "old space" like ULA and Ariane, and "new space" like SpaceX and Rocket Lab, Old Space is configured to spread out infrastructure to as many states as possible, because that's how they get most of their R&D budget. A common characteristic of New Space is that not only do the source more in house, such as the engines, but they often use essentially the same engine on both stages, and same tankage (just different heights) on both stages too, so they get lots of economies of scale and can iterate faster, which in turn enables other improvements like reusability, and the difference between 10 launches being a good year for one company and less than 20 launches being a slow year for another.

[@NPJGlobal]

the French naval defense industry will survive the loss of the submarine contract, but the rate of new R&D investments and innovations might slow down as a result. Where I'm more worried is the joint venture between Dassault and the Germans on the next generation stealth fighter.. Dassault would be better off designing its own fighter like it did with the Rafale. The French and German egoes are too strong for them to efficiently work together without one trying to one up the other.

[@johndawson8281]

I enjoy and am enriched by all your analysis. Keep it up! As a retired naval officer, I would like to know more about the Russian naval blockade and the Ukranian mining of Odessa: What are these mines; do they have command and control capabilities; what force do the Russians have in place; how much cargo tonnage needs to get from Ukraine to the rest of the world, etc. Turkey's role would be relevant also. Going there in the fall.

[@timsullivan4566]

I have never before encountered such an extraordinary level of engagement as can be consistently found in your comments, and which is notable in all desirable metrics - including thoughtful examination, respectful cross-examination (and please tell me where else online does debate seem so directed to arriving at truth, rather than defending established postures?) and most astonishing of all... civility!!! As this godsend cannot reasonably be ascribed to some happy chance, I think it a phenomena which in effect represents a very well deserved compliment to you and in particular, to the precise nature of your presentations. It is not only that you have set the bar so high, but also that the bar itself is of such quality and even the exact height of its setting , an act of such precision! So, yeah... a fan! ;-)

[@eliseleonard3477]

I’m a non-military person with a science background. Though this procurement information may seem a bit ‘in the weeds’ I’ve found that it really helps with comprehension of news on the 🇷🇺 X 🇺🇦 war. Thanks for your efforts and your fantastic organization and delivery.

[@dixonpinfold2582]

Tbh, the title had me thinking he was going let us know what the Russian and Chinese military budgets are really worth compared to that of the US, so this one came as a let-down.

[@asianboywonder2312]

I think theres lessons to be learned in other fields from this

[@davidhudson3001]

@@ericalorraine7943Think long term, personally i ventured into the market so i won’t be stranded after i retire. A colleague of mine introduced me to CFA " Teresa Jensen White " who drew out retirement plans and they all aligned with what i wanted and had to pick one plan and with her exit and entry strategies on commodities, securities and digital assets, my portfolio has really been diversified with good ROI. I am really impressed by how much i have achieved

[@alhajishehu7037]

Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future

[@lezliewhicker8450]

Investment now will be wise but the truth is investing on your own will be a high risk. I think it will be best to get a professional👌

[@michaelramon2411]

In the last months of WWII, the United States was producing more aircraft (particularly fighters) than their forces could actually use. But they didn't want to shut down the production lines in case they needed to spool up again, so they sent out a directive that a plane could be scrapped and replaced for essentially any reason. There's a scratch on it but it still flies fine? Chuck it into the ocean and have a replacement flown out to your carrier. What I'm saying is that a) defense production economics often sounds pretty insane and b) the United States is VERY good at it.

[@KB4QAA]

MR: The US actually started reducing and ceasing some aircraft production as early as August 1944.

[@simokoistinen276]

I find this somewhat hilarious because this happens usually to me when I play Civilization VI and when I am going for the domination victory. I am like: I don't know if I am going to need this artillery/bomber/tank/infantry etc. unit in next 5 turns but because it takes 15 turns to make it, let's just be sure in case I need it after next 20 turns :D

[@manchagojohnsonmanchago6367]

No it wasnt the reason at all it was because there was acute corruption in the tale end of us ww2 manufacturing and manufacturers wanted to have as many sales as thry coukd before the war ended

[@-John-Doe-]

@@manchagojohnsonmanchago6367 There was still quite a lot of military tension in the world following WW2 - it took less than 2 short years for the Truman Doctrine to somewhat _’officially’_ kick off the Cold War.

[@manchagojohnsonmanchago6367]

@@-John-Doe- yeah but thats not the reason.. They dumped the jeeps in the sea so they cluld get paid for them kr so they ckuld bill their allies for them not because of tension. If the item wasnt used they couldnt buy more. . And if it was use new ones were not needed.. The most jewish middlemen who arranged these deeps became the post war masters of the american economy

[@jonathonfreeman9233]

love the slideshow format! it's so great for "watch while work" in a very productive way. =)

[@Norman_Fleming]

Love that you explain how the volume driving down costs blows all those headline numbers of 'cost per' out of the water. Another excellent video.

[@nebufabu]

Back during WWII British jet engines relied on more heat-resistant materials and German on machined cooling ducts. Modern high-performance jet turbine has precisely machined cooling ducts... In each blade made from a single giant crystal of an alloy that literally has the most rare non-radioactive element in the world as one of major ingredients. So, you need some highly advanced machine tools, some metallurgy that has more in common with microchip manufacturing and only really used for this, and access to exotic raw material that people in the know probably keep an eye on and next decade's production already spoken for in any case.

[@deriznohappehquite]

Yeah, it’s not WWII where a car factory can start turning out state of the art fighters and bombers.

[@OtterTreySSArmy]

@@deriznohappehquite lmao car factories in the US are literally designed to be able to do just that. Defense Production Act is a hell of a drug for manufacturing....

[@rwilson1125]

And make lots and lots of these magic crystals.

[@neolexiousneolexian6079]

Wouldn't the single rarest non-radioactive element be a platinum-group metal or something? Or He-3 or something if you're counting isotopes?

[@nebufabu]

@@neolexiousneolexian6079 It's rhenium (though, apparently my info is outdated, it's no longer believed to be the rarest element.) Still only 50 tons/year production, mostly in Chile. An alternative (even more expensive) is ruthenium (indeed a platinum-group metal) but production there is even less, and there's less research into those alloys. You need about 1%-15% of those in a typical alloy of this kind.

[@Partstim]

Something that could have been included with this - another advantage that the US Mil-Ind complex has is using the military-funded R&D for civilian manufacturing products. Those can be hugely profitable after the kinks have been worked out on the military side. A new indigenous start-up lives and dies on the one customer it has, where Boeing knows it can make money further down the line on the civilian side.

[@neodym5809]

Perun has mentioned it in the beginning, I believe

[@JMM33RanMA]

There is a company in Cambridge, MA, researching uniform improvements from camo to function, and another researching robots for military uses. My university had a separate [with guarded gate and barbed wire fence] DoD funded research facility.

[@Partstim]

@@neodym5809 OK, I didn't recall hearing civilian markets mentioned, but it's entirely possible that I missed that.

[@Partstim]

@@JMM33RanMA ah yes, that's huge too. The US has a lot of academic institutions that contribute to the Mil-Ind Complex. That's a major supporting arm that isn't always available to a go-it-alone nation.

[@JMM33RanMA]

@@Partstim True enough, but do you know how many foreign students are enrolled at major or medium US Universities? The pre-pandemic stats indicated that the huge number of foreign students was a major support of the institution and all of its programs, DoD being another, followed by Alumni support. Then there is the percentage who stay in the US to work in their field or return to their own countries. This is another complication in an already complicated study of follow on effects.

[@sanc9808]

Please don't let the low(er) views compared to your other videos stop you from making videos like this. I for one, really love this kind of content. It is unique and very different from the other algorithm serving video topics.

[@leovalenzuela8368]

Wow this shit is ABSOLUTELY fascinating! I’ve shown this to at least two different friends who woulda balked at the prospect of sitting through an hour long presentation on international defense economics and they ATE IT UP. thank you Perun for making these and YES PLEASE make the video asking why the US only accounts for 39% of arms deals.

[@BovineFreedo]

This is fast becoming one of the best parts of my Sunday. I like the job you are doing.

[@foxtrotcharlie5227]

When I first watched your channel, you were at just over 20k subscribers, the content consistency and quality speaks for itself. Congrats on 200k!

[@apatheticattempt]

EVERYONE PLEASE. JUST THANK THIS MAN FOR MAKING CHAPTERS SO YOU CAN SKIP ADS!!!

[@JoelJames2]

I would like to mention that I like the slideshow format. I listen to you while I go on long walks, so knowing I’m not missing much visually is a good thing. Also, I would love to see a video on why America commands less than half the export market despite all the advantages you listed here.

[@shannonmikko9865]

5:10 “Is Saudi Arabia about to try and conquer Ukraine” Little quips like these make these videos so great

[@Landogarner83]

If someone had asked me half a year ago whether i would be interested in watching hour long slideshows about defence economics the answer would have been a resounding no. But now that i have stumbled over them they are surprisingly interesting. So keep doing those presentations and i will keep watching them. Thank you very much.

[@josephdestaubin7426]

This Channel and Economics Explained are probably the two best channels on KZbin.

[@davidcpugh8743]

As an under equipped grunt on the sharp end, and since then an economic and financial wonk, your presentations are bang on the money. No puns intended?

[@davidcpugh8743]

My main weapon was a hunting dog. Not high tech but effective.

[@davidy-t7115]

Very well done, as a mbr of the Canadian DND involved with Ships and peripherally with the Type 26 purchase, a lot of this brings home Canadian domestic Shipbuilding, lessons learned from the City class Patrol Frigate, 1990 (supposed world leader at the time with "HUGE" potential for export sales, of which none happened...) and the latest new Canadian Surface Combatant. Your video should be required viewing for junior personnel in every small countries military procurement organization to better understand the issues.

[@bmunson4920]

Bingo!!!! And 16x per tone what the British spent on supply ships, and 5x for a Norwegian patrol ship design.

[@joewiddup9753]

Sounds like Orenda. We could and did build well bank in the day. Time to just give up and contract out production.

[@RelativeGalaxy7]

@@bmunson4920 We really didn't pay 5x for the DeWolf compared to Svalbard, it was more like the Norwegians lied and obfuscated the true cost of the Svalbard. Norway couldn't even give a realistic quote when asked. "A good example of this pricing illusion comes from the Canadian media's continued insistence that Canada had wildly overpaid for the AOPS Project. At $400 million per vessel the new Harry DeWolf-class AOPVs appear far more expensive than the similarly sized Norwegian ship Svalbard (official price $100 million USD) or the much smaller Danish Knud Rasmussen-class (official price $70-80 million USD). Yet behind these prices lay heavily subsidised industries that produced official prices unrepresentative of the true cost of the ship. Those ship costs also excluded supporting infrastructure, training, ammunition, spares, many onboard systems, and the huge contingency that is factored into Canadian procurement projects. The price was a mirage and when Canadian representatives requested a price from the Norwegians for a Svalbard, they were told that there was no firm 'sticker price' and that it would take over a year to even assemble a realistic quote. That was the conclusion of the PBO as well, which dismissed the notion that Canada could actually procure a Svalbard-class for that all too frequently cited price tag."

[@ItsJoKeZ]

In my head I literally said- it is Sunday, there is a Perun video. Go to your channel and it's posted 3 minutes ago. Deeply appreciate you and your efforts. Haven't even watched yet.

[@TheLuthers]

I'm a production parts painter at a company in America and I have actually painted a ton of f-35 parts but mostly things for Gulfstream. Great video I really enjoyed it!

[@LordMazafeff]

The USA is playing an RTS in the late stages with a fully developed economy, an almost maxed out tech tree, a unit cap higher than several other players combined and many superweapons off cooldown and ready.

[@Cristieagle]

I live in an Eastern European country and I have to say - thank you for this video. Every time I hear some boomer ranting about how we should just manufacture everything ourselves, I feel like bashing my head against the nearest brick wall. Wish I could just show them this video as a response.

[@OtterTreySSArmy]

Did you miss the whole "these are good paying jobs" thing? Like seriously if the US had as many manufacturing jobs as we used to, nobody would be asking for universal healthcare because our healthcare would be the best in the world by a wide margin.

[@Cristieagle]

@@OtterTreySSArmy I'm afraid I don't understand what this has to do with what I said - especially from an American perspective. I am Romanian.

[@wom_Bat]

Zoomers say it too. Idiocy has no age limits.

[@frida507]

It also has some disadvantages to depend on one country only. Especially one that is not 100% stable politically.

[@wom_Bat]

@@frida507 i think it's important to develop some of the simpler stuff yourself and shop around for the rest. Have your fingers in a few pies. I know Canada doesn't make many big ticket items but they do develop and service a lot of the tech for American and other systems. They also sell a lot of specific engine parts for armour and aviation, for assembly usually abroad for various systems. It's a good way to get in the market with a little less investment and risk. They also make their own rifle with sales to Norway, Belgium, Netherlands, and mali. The rest is usually just upgrade packages for American, British, French and German equipment. That's the ground stuff atleast. Air and sea are 2 very diffrent stories. Anyway it's good to have a mix this millennial believes.

[@americanpatriot4227]

Good Morning all. THANKS Perun, amazing work. I now cant wait for Sundays - so I can watch your next episode. As former Military and with a Masters in Military History, I can say with certainty that you do better work than some teaching this stuff. KUDOS, simply KUDOS! ( Added note - I have never had time to really look into the Avro Arrow, If you have the time to do a study of its real ability, costs and so forth would be great )

[@JMM33RanMA]

I agree. I never was in or studied the military, but ended up on a few occasions in military or military adjacent educational work. While this video wouldn't be particularly appropriate for low level training, it would definitely benefit college level military classes and administrative specialties.

[@markojavorac9117]

Thank you so much for making content like this! My schedule instantly clears when you drop a new video. You are gonna be the first person I support on Patreon and I hope you continue making content like this for as long as possible. Can’t wait for more videos and please continue to dive into more niche topics whether it’s related to the conflict or not ❤️

[@kalmenbarkin5708]

I work in the defense industry on the machining side and one thing about large/small volumes is that when we start a new line and tool up etc it takes months before we work out all of the little kinks (eg machines stop breaking down twice a shift as we figure out exactly what speeds coolant ratios and the like we can get away with running stuff at) Efficiency of manufacturing on the very same tools and the very same machines is much higher in month 6 than it was in month one

[@moseszero3281]

15:30 - I would LOVE to see a breakdown of the knock-on effects of so much russian/soviet made equipment being sent to ukraine and backfilled with NATO standard equipment. Russia had a decent market for selling military equipment but after this war there will be fewer countries with a need for russian made parts. AND the sanctions are preventing the manufacture of many of their most advanced jets and tanks. I don't think Putin could have done more to cripple the russian military industry if he tried.

[@aaroncabatingan5238]

Well, he could dump all of Russia's nuclear stockpile in Ukraine. That would make Russia's military situation way, way, way, way, way worst.

[@pataki2666]

And my pizza is done now. Heck yeah. Update: The pizza was so-so. The video was great as always.

[@thcdreams654]

You always knock it out of the park. Stay on your grind homie. Thanks.

[@tylerjones2927]

I'm just watching a new forgotten weapons video on the production of firearms by non firearm companies, and Ian gives a shout-out to my favorite PowerPoint channel. Perun your playing with the bigs boys now.

[@ScrapKing73]

Another defence spending difference is some countries include their coast guard in their militaries, others don’t. The U.S. does and Canada doesn’t, as one example. The Canadian Coast Guard is part of Canada’s Department of Fisheries and Oceans, and is more about enforcing fisheries quotas, civilian water safety, etc., than coastal defence. Whereas in some countries it may do those things as well, but also have a military component.

[@dixonpinfold2582]

I noticed in a report last week that a US Coast Guard ship was cruising through the Taiwan Strait.

[@joeclaridy]

The US Coast Guard initially was apart of the Department of Commerce. In the Aftermath of 9/11 the Coast Guard was moved to the Department of Homeland Security. Now, during times of war the US Navy is allowed to bring it under its command until hostilities cease.

[@agriphalalbion115]

@Perun; The answer to why your channel is growing so fast is actually a complex of three main reasons. In short, authenticity (your capacity to be honest with what you can claim, or cannot claim, in an analysis); the detail & brevity balance; and clarity of expression. You seem to have all three in abundance, so much so that I'm struggling to find a peer competitor to your channel.

[@aaroncabatingan5238]

Agreed, this channel is very unique.

[@harleyb.birdwhisperer]

Very nice job, again, sir. The contribution of the American education system, pumping out world-class scientists and engineers doesn’t get enough credit. Once you produce such a cadre, you need to put them to work. The military and space programs are huge consumers.

[@sunny-sq6ci]

another thing to add is that generally speaking the US military and the tech it funds in r&d is somewhere 10-20yrs minimum ahead of everyone else. that is not cheap to support.

[@ChilapaOfTheAmazons]

Please do *feel free to make more defense industry videos:* many of us appreciate the mix of different topics, even the more "nerdy" ones. ✌️😄

[@TheGeeoff]

My impression is that Perun works in defence procurement. So he has great insights into this topic.

[@jannegrey593]

This is gonna be great - deep analysis. Stuff I can listen for hours and learn a lot from.

[@7and7and7is]

Congratulations on 200k. Rarely has a social media platform been so informative and seldom is a video so well worth an hour of one's time. The quality of the content rivals that of prestigious legacy print media or something for which one would have to pay expensive tuition.

[@izarscharf7845]

Always love your insights into this topic, presenting information that wouldve been a chore to accumulate as someone not in the field. I really enjoy these analyses keep on !

[@mikkosaarinen3225]

Congrats on the 200k! And your videos became instant much watch, no matter the topic. I understand that doesn't go for the general public, but personally I'll watch whatever you put out. You're able to go into the topics you cover on a level that's rare. A good parallel can be drawn with media coverage. There are a lot of channels whose videos consist of then recounting what happens in a series or a movie and going movie good/movie bad. But the really interesting channels are where covering the piece of media is just a starting point to discussing the broader social context or the themes covered or tropes used. You fall squarely in the latter category. Also I have massive respect on you for knowing and bringing up the limits of your knowledge. That speaks of a level of expertise that instantly makes you someone I want to hear more from. Anyways, thanks for making such great content and please keep making videos on topics you feel you can cover well. Because that's where I think you shine.

[@llNobleMousell]

Every Sunday in the morning at work I look for something to listen to and your videos never fail to help an hour of go by. You’ve earned this sub

[@macfilms9904]

This is fantastic content - I really appreciate the long-form format - it's easy to do a 10-15 minute 'analysis' video on comparative defense expenditures or production capabilites, that hits on the surface. You're putting in the work to go much deeper. These topics are very much of interest and I look forward to all of your 'PowerPoint's'

[@zackslater3966]

Hey Perun, this video is fantastic. I totally support your exploration of more subjects like this that are not directly connected to the Ukraine crisis. It's important to understand the broader context of the defense sector as it sheds light on why certain actors make the political, strategic, and tactical decisions they do. This is one of the few KZbin channels that continues to deliver impact upon rewatch. Great job mate, you deserve all the success you've gotten thus far and more.

[@mikedittsche]

Perun thanks a lot for your excellent content. The reason your channel grows so successfully is that there is simply no content like yours on KZbin. 1. No clickbait 2. Informative 3. You talk exclusively about stuff you understand and have researched well - while you explain what you won't talk about because that not being your field of expertise. There are other great YT channels out there adhering to points 1-3, like Military History Visualised or Military Aviation History. But your angle is different - and that specific viewpoint is completely missing on KZbin outside of your channel. I'm looking forward to many more of these well researched and well thought through analyses - excited about the comparison with the Russian/Chinese/European Military-Industrial-Complexes.

[@PerfectDeath4]

I often remember the call outs against the US military industrial complex spending so much on "unproven tech" and that they should make more of the old and reliable. These people don't realize that if you produce enough of the new stuff, it will become as reliable as the old while being considerably better. America has the money and industrial base to do that. Meanwhile, many of these call outs come from people who get a lot of their info from competing sources that are trying to play catch-up. =P

[@colincampbell767]

Another thing we have is the willingness to have a certain percentage of our R&D programs fail. Because if you don't have programs that fail - then you're no longer a technology leader.

[@aaroncabatingan5238]

Imagine if Desert Storm was fought using Sherman tanks only. That's what assholes like Pierre Sprey(thank stars that guy is dead) wants.

[@Redbird-dh7mu]

And this is why the reformers aren’t taken seriously by anything with a basic understanding of how militaries work. If it was up to the reformers, we probably would barely be using Radar.

[@PerfectDeath4]

@@aaroncabatingan5238 Iraq may have assumed that Desert Storm was going to play out like D-Day landings but the US "changed the game" BTW, sprey wouldn't want them ONLY using shermans. But also they should be using prop fighters with heavy machine guns CAS. The Iowa should be sailing close to shore for bombardment. They shouldn't be called "reformers" but instead "reenactors"

[@PerfectDeath4]

@@Redbird-dh7mu The USN learned the hard way why Radar is a very VERY good idea during the Solomon island campaign.

[@kugodx9]

Thank you for providing us with another banger! Keep it up and congratulations on 200k; well deserved!

[@kevinkenney7483]

i worked on the F-SX (F-2 Viper) program at General Dynamics in Fort Worth. The Japanese government purchased six prototype(test) aircraft as well as the production engineering and analysis package. This way they build them in Japan. Prime example of a technology transfer situation.

[@lairdcummings9092]

I love these deeper dives. Thank you.

[@juliusreids2653]

One of the reasons I really love your work and your channel so far has been how you break down and explain topics that are often overlooked, or misunderstood and make them digestible to a much wider audience. Keep up the good work!

[@simmerdafukdown]

A stupid thing to take away from an hour long video about the economics of national defence but Private Conscriptovich is my favourite recurring Perun character.

[@Typhon47666]

Excellent work as always sir - the most intelligent researched and analysed geo-political content on the internet. Keep up the good work, this level of quality is impossible to find elsewhere, so thank you!

[@davidgellatly1975]

I really appreciate these analyses, which are far more balanced, insightful and informative the the standard military porn and talking head blathering that passes for "informed opinion" in the media. 200,000k subscriptions shows there is a demand for high quality content. Keep up the good work. Random comments: The Owen submachine gun is a classic (Australian) example of essentially "bashed together in a garage" firearm. The example of indigenization also applies to the general transfer of industrial manufacturing offshore whether it is cigarettes or autos. First you export; then you license a third party, if there is a local producer; and finally, it the market is big enough, you set up your own production which may also include local brands, designs, etc. The original Australian diesel submarine deal with France, prior to the pivot to the US/UK, is the classic example of being willing to wait forever, since there was a minimum 15 year wait period between the time the first submarine was supposed to be delivered, at twice the price of the existing French nuclear model. It is also an interesting case study of extraneous, non-defense, considerations, in this case nuclear phobia, driving procurement decisions. This would an interesting case study in non-rational defense procurement. It is interesting to see how much more complex aircraft have become since WWII. Willow Run (the Ford B-24 plant) produced a plane every 55 minutes and the B-24, which was the state of the art long range bomber in its time, consisted of approximately 10% of the parts of a modern 4th generation plane. I

[@kenoliver8913]

I agree the Australin subs (both French and US/UK) are an interesting study in non-rational defence procurement. The first was arguably non-rational, the second batshit crazy -"nuclear phobia" had the effect of pushing TOWARDS that crazy decision (its called domestic politics and wedging the ALP). But that's another story.

[@odinsrensen7460]

200,000k subscriptions show that youtube is a huge platform, and even niche subjects can attract followings that are both relatively small and simultaniously very large compared to a lot of other channels. The total amount of subscribers to all gaming channels eclipses the total amount of subscribers to all military procurement channels by a hilarious, incomprehensible margin. But if you corner the market on a niche, you get this.

[@dylanboyd2963]

This is amazing. Lots of information that while out in the open could in some situations could be extremely tedious to find if you even happen to be looking for it. I feel like people don’t talk about how it’s not just showing your work ethic towards these videos but just how convenient they are. Love ❤️ the economics behind military spending and the in depth figures that go into them besides x costs this much. Definitely makes people more informed about what their own military could be purchasing and why they are doing so. Genuinely thank you. Great voice for speaking as well.

[@ehenry556]

Another great video thank you! Very excited for what the future holds for this channel! Your weekly release has me waiting on edge every Sunday for the new episode

[@bluegrasshopper7721]

100% Intellectually stimulating, 0% Politics and Drama. Best Channel on KZbin.

[@kalterplanet]

Your content and the way you deliver it is amazing. I've never been interested in procurement or defense spending but this, and all the other videos you've made for that matter, is enthralling. You bring up a lot of things, for instance the secondary effects of keeping manufacturing processes running even after the need for the product has passed, which I never thought about and used to rail against. You show the nuances of all of these situations in clear detail and I love nuance. Keep it up!

[@talktidy7523]

My ignorance of defence economics is now a little less profound. I am going to rewatch this in a day or two, because this is not the sort of stuff that sticks in my poor brain without reinforcement.

[@odinsrensen7460]

Phenomenal. I always feel so much more educated after watching one of these. Oh, and congrats on the 200.000 subscriber mark.

[@deanverstegen5061]

I check KZbin constantly every Sunday to catch the release of the latest Perun video. It is the most interesting content in the space these days. Keep up the great work!

[@narrowgroundentertainment]

I found your channel with the posting of your initial Ukraine video, it's been incredible to watch it grow in the last few months. The information and context you provide in your videos is great, it really helps me understand the WHY of a lot of these topics. I also really appreciate the one hour length, I'm a truck driver and love hour-and-up length videos to listen to while driving, especially yours as they stay interesting throughout. Lastly, I second the Kings and Generals comment about work ethic; when I was still posting regularly I found it difficult to get 30 minutes up per week, and those were let's play videos. Yours involve a lot more research and effort, and you get an hour long video up just about every Sunday!

[@gunner38ED]

Congratulations on the 200k sub figure. I've been watching your 1hr ppt presentations for a month or so and the quality is beyond any "journalist" I've ever seen.

[@mikemerta4811]

so true

[@OllyHux]

Great video as always mate. Love your content. The sheer effort you must put into these is astounding. It's so refreshing to see someone give such an informed and nuanced perspective. The subjects you cover, not to mention the particular sphere of analysis, should by all rights bore me to tears, yet you always manage to make it absolutely fascinating. Thanks for taking the time to put these together :)

[@auswhofan]

great informative vid, loved hearing an Aussie voice delivering the content.

[@axeljohansson8925]

I realy hope you will continue to make these types of videos after you no longer have anything to say about the current war, for while the "all bling no basic" and "sending there best" videos are among the most captivating content on the platform this video and the Germany one are not far behind. and congrats on 200k

[@thomasnesmith5426]

I thought I understood why America always kept ahead, but this opened my eyes. Amazing video.

[@ghoti221]

FWIW I hope you continue making these videos - there’s a lot of defence commentary out there, both video and other format, but very little knowledgeable discussions about defence economics, and it’s like a breath of fresh air. Thanks for making these.

[@joseof-]

I've watched every one of your videos in the last couple months. Good stuff, consistent uploads, always happy to see a new video.

[@arieldahl]

the engine for the lavi was mostly, domestically produced - licensed American engines. back in the days of working with the French and the mirage (M. 1, 2 & 3) the Israelis built up domestic capabilities in the field: starting from building kits in '48 and gradually learning how to make the parts domestically.

[@ThanhNguyen-rz4tf]

The way you connect information and list the source of your information so that others can do their own research is very admirable.

[@Swimavidly]

Speaking as a US citizen, this video really helps me understand where my tax dollars are going and why the US government has been so insistent on maintaining its spending and technology lead over other nations. I really appreciate you putting this together.

[@jordanlaw9936]

This is by far my favorite video on your channel. And when looking at the awesome quality of your other stuff, that's really saying something.