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Doug Dlod

Doug Dlod

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Doug Dlod

Doug Dlod

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  • August 7, 2019

The economics of conflict and war

#tentcity #trump #election2020 #southernborder #texas #dhs

Conflict and war make money. They can make money for both sides, though if the conflict turns into an all-out-war, only the victor will get to enjoy it. So it should come as no surprise to learn that under the Trump Administration, a project that would have cost them $1, ended up costing them $25 million instead.

According to a report by Vice News, the department of homeland security (DHS) was offered a city-owned building at the outrageous lease price of $1 to serve as a temporary immigration court building for the migrant crisis we’re experiencing in our southern border. Instead, DHS decided to go forward with their contractor, Deployed Resources, which specializes in temporary structures for disasters and special events.

Why would anyone choose a tent city at a cost of many multiples of magnitude over a city-owned building? Money. Since Trump was elected, military defense companies have seen the economic upside of the conflicts. A perfect example is Heico, an aerospace defense company based out of Hollywood. When Trump took office their stock HEI, was trading at about $27. Today HEI is trading at well over $130. That is a gain of 5 times in less than 3 years. Of course, credit should be given to Heico and its management, but the conflicts that Trump has created have definitely benefited this sector.

Just like the Iraq war brought Halliburton (and Dick Cheney) riches, so too, are these conflicts bringing riches to defense companies and to the politicians that are supported by them.

Photo By: Edward Paterson

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