## The Architecture of Defense Monopolies

Unlike an iPhone where Apple takes all the risk to build a phone and hopes you buy it, Defense Contractors build fighter jets on "Cost-Plus" contracts. This means the US Government legally guarantees to reimburse the contractor for 100% of their costs to build the jet, PLUS a guaranteed pure profit fee on top.

### FAQ

**Q: Why do military jets cost billions of dollars and take 15 years to build?**
A: The Perverse Incentive of Cost-Plus. If a prime contractor finishes a missile on time and under budget, they get their fixed 8% profit fee. If they take 5 years longer, hire 4,000 more engineers, and rack up millions in 'Overhead' costs, the government *still pays them* to cover all those costs, meaning the company physically cannot lose money. Cost-Plus mathematically eliminates efficiency by removing the capitalist threat of bankruptcy.