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rdtscyesterday at 9:40 PM1 replyview on HN

> Adam Smith pointed out the first pencil costs thousands of dollars, but the second is mostly free. Same dynamic here, but multipled by a thousand.

The shells are already made by the 10 and 100s of thousands, Shaheds are also not a research project, so either one is in amortized serial production now.

What I meant is that a $10k shell doesn't cost that much. Russians are making the equivalent artillery shells for an _order_ of magnitude less for around $1k. A lot of defense costs are just overinflated simply because they can be. The government is spending taxpayer money, it's not really coming from the politicians' pockets. If the kickbacks are just right, they may in fact flow back into the politicians pockets.


Replies

Maxiontoday at 8:34 AM

A lot of defense spending revolves around overall manufacturing capacity. Deals contain options that won't be executed unless it's war time. These options increase the cost of the deal as the manufacturer needs to keep capacity.