NEWS > BUSINESS > ECONOMIC DOWNTURN PUTS U.S. GENERAL ON BREAD LINE

ECONOMIC DOWNTURN PUTS U.S. GENERAL ON BREAD LINE

May 11 2009

Kabul, Afghanistan – While many are pointing to positive developments in the ongoing economic crisis the harsh reality is that people are still losing jobs in record numbers. With over 500,000 jobs lost across the United States last month, for many those signs of improvement are very difficult to read. With little growth expected until
2010, struggling families are doing everything they can to make ends meet as they try and wait out the jobless market. Now one more name has been added to that mass of unemployed, General David McKiernan.

McKiernan’s role as commander of the U.S. forces in Afghanistan has long been in question. The massive surge in violence as well as the continued escalation of cost has put his nearly year long tenure as the top boss in the country on the tipping point. Though it’s not exactly clear why Defence Secretary Robert Gates decided to make the move, it is believed that the ongoing economic problems played a partial role in the move. McKiernan will be replaced General Stanley McChrystal, who is seen as having a better understanding of the region and asked for less money.

“Everyone has to make sacrifices and some people just don’t have firm grasp of that.
Some people seem to think that they are worth X amount of money and they are unwilling to budge but it’s like throwing the baby out with the bathwater. In good economic times you have the ability to make those demands but when people are struggling you just can’t get away with the same things,” said Scrape TV Business analyst Ken Green. “There are no businesses that are truly bulletproof. I mean that would be a great asset in the military but unfortunately that’s just not the case. Simply put, McKiernan priced himself out of the market.”

Afghanistan has proven itself as having one of the most stable economies in the world, actually showing growth through the global recession that has touched virtually every country in the world. McKiernan’s departure is seen as one of the rare departures in the country, due in large part to Americans footing the bill.

“Between hostage taking and opium production Afghanistan has done a terrific job of building up its economy. Drug sales obviously do well in bad times, but their success in the hostage industry has done things just right. People are simply not able to pay as much as they
once did and Afghans have set their prices at perfectly reasonable rates. They are succeeding through volume,” continued Green. “Unfortunately though the United States has been the hardest hit of any country in the world and that is going to restrict their ability to pump money into the country. You can go back and forth as to who will be a better commander, but the harsh reality is that it’s better than having no one which is the other option. Odds are things would get a little worse with nobody in charge.”

It is not expected that the U.S. Military will make other high profile cuts, though it has been rumoured that the Obama administration is looking at ways of reducing the cost of materials used, including uniforms and bullets.

“Even though the U.S. has started moving the majority of their resources to Afghanistan they still need to be practical. Ammunition, uniforms, food, these are the things that constitute the majority of the expense in any war but they are absolutely necessary. If you make those things cheaper you will save in the long run,” continued Green. “War is like any other business; reduce costs, increase profit. They are making strong moves by replacing large salaries but to be effective in the long term they need to continue to be aggressive.”

It isn’t expected that General McKiernan will have an easy time finding work upon his return to the United States. He reportedly has done little to upgrade his current skill set.       

William Ashford, Business Correspondent

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