Are we overpaying for military equipment?

This podcast episode delves into the complex relationship between the U.S. government and the defense industry. The government has significant buying power but also faces pressure to keep defense contractors in business. In the 1990s, the government authorized industry consolidation leading to the formation of "Big Five" contractors. However, this consolidation reduced competition, increasing prices for weapons systems and contributing to cost overruns like the F-35 fighter jet program, a textbook example of the sunk cost fallacy.