Posting #12: The Story of Self-Sacrifice and Military Life

The story: We Americans tell ourselves a story about our armed forces that says they are noble, dutiful, heroic, honorable, self-sacrificing, and patriotic, let alone brawny and aggressive.  We are told this story repeatedly in blockbuster movies like Restrepo, Zero Dark Thirty, Lone Survivor, American Sniper, and The Hurt Locker.  While a miniscule portion of us have firsthand experience of working in or studying the US military, we willingly accept this story—especially the self-sacrificing part—as valid. 

Since 1973, all active-duty, National Guard, and Reserves US military servicemembers are “volunteers” in an All-Volunteer Force.  Not only are the servicemembers voluntarily serving and consequently uninterested in compensation, the story tells us, their primary objective is to protect other Americans, not themselves.

My take on the story: According to the Cambridge Dictionary, a volunteer is “a person who does something, especially helping other people, willingly and without being forced or paid to do it.” Granted, the servicemembers are not forced to work for the US military, as they would be if they were conscripted.  However, the military servicemembers populating the US military are not “volunteers” in the sense that they serve for zero compensation.  In fact, young people who were surveyed about their “propensity” to work for the military cited “Pay/money” as the primary reason for seeking employment with the armed forces.  In this posting I outline Military Life generally but focus on compensation specifically.

First, the story does not specify the tiny proportion of US citizens that join the military, whether on active-duty or in the reserves.  The 1.3 million active-duty servicemembers represent less than one half of 1 percent of the US population.  Since the end of the draft in 1973, that percentage hasn’t changed meaningfully, despite the larger population and the changing demographics of who joins the armed forces.  The “Selected Reserve Force,” which includes Army, Air Force, Navy, Marine Corps, and Coast Guard Reserve units plus the Army and Air National Guard, includes about 800 thousand members.  This represents a 6.4% decline since 2010.  Does this tiny percentage of uniformed people working for the armed forces mean that fewer people find value in volunteering?  Or might it mean that the economy is good and so people don’t have to seek employment in the military?

Second, the story doesn’t distinguish among the ranks of the servicemembers, which obscures the relative “voluntariness” of their joining.  There is a distinct class difference between officers and enlisted personnel.  Officers are considered the “managers” in this business and enlisted are considered the “workers.” Even the most junior and inexperienced officers always outrank the most senior and deeply experienced enlisted (e.g. “non-commissioned officers,” or NCOs).  This status sets officers up for success post-military in ways enlisted status does not, something that West Point overtly advertises: “After their time serving in the Army, officers are often considered prime candidates for management roles and executive positions for top companies such as JP Morgan Chase & Co., Amazon, Google, Microsoft, and many more.”  Enlisted personnel are told something far less specific: “The experience, training, and leadership skills you earn in the military are exactly what employers seek, but that's just an additional benefit.” 

·      Officers can be commissioned or warrant and must be a US citizen.  Commissioned officers are generalists with college degrees who are granted their commissions by the Commander-in-Chief, the US President.  This commissioning ensures that “the President is fully accountable for what the military does in defense of the nation.” Officers’ commissions are gained either through Reserve Officer Training Corps (ROTC; 70%),  graduating from one of the three service academies (less than 20%), or having completed the Officer Candidate School (OCS; the remainder).  Professionals like lawyers, physicians, and spiritual leaders can receive direct commissions without having gone to a service academy, through ROTC, or OCS.  Warrant officers are specialists, enlisted people who earn their “warrant” by excellent performance in one field or another, are only in the Army, Navy, or Marine Corps, and do not have to have a college degree.  Finally, according to the US General Accounting Office (GAO), the largest number of commissioned officers typically come from “economically advantaged areas—that is, from those with poverty and unemployment rates below the national average and household incomes above the national median.” (According to the 2022 census, median income is $75K.)

·      Enlisted servicemembers do not have to be a US citizen or have a college degree.  They must have a Green Card and a high school diploma or a General Equivalency Diploma (GED). They are eligible to enlist if they meet the requirements for physical and mental health, criminal record, age, physical fitness, educational background, and drug use. Finally, the largest number of enlisted personnel come from the middle class, with family annual income between $38K and $80K. 

Therefore, the socioeconomic class difference between officers and enlisted people precedes and follows their joining the armed forces.  This certainly calls into question the self-sacrificing element of their employment.

Third, the story doesn’t mention the extraordinary benefits that servicemembers receive, benefits that are rare in the civilian work world and call into question servicemembers’ self-sacrificing, “volunteer” status.

·      Base Pay, Special Pay, bonuses, and Combat Pay

A 2018 Brookings Institution report on the US military calls it “one of the last bastions of middle class social mobility,” citing a steady increase in compensation since 9/11 while civilian wages have stagnated.  Without even including some of the tax-free benefits like housing and clothing (discussed below), a middle-grade enlisted person “is making an above-average American salary.”  For instance, as of January 2023, that middle-grade enlisted person, or an E5 with six years in service, has been paid $3423.90 per month, an amount that is projected to increase by 5.2% for 2024.  This will put the enlistee’s monthly pay at $3602, or $44K a year before taxes, or in the lower range of the middle class.  But an officer—an O5—with the same number of years in service has had a 2023 base pay of $8105.70 and, with the 5.2% increase, will be paid $8527, or 104K a year before taxes, well above middle class.  Additionally, both officers and enlisted have the potential for “Special Pay”—hardship duty, flight pay, aviation career incentive pay, career sea pay—which can add as much as another $1000 to each month’s paycheck.  Enlistment bonuses and those to incentivize staying in the military can also add $50,000 to one’s base pay.  All of these types of pay are taxable, both federally and by state.  According to the IRS, however, if a servicemember is working in a combat zone or in direct support of military operations in a combat zone, the entirety of their Base Pay is tax-free.

·      Tax-free Allowances. But most servicemembers are granted a series of tax-free allowances that significantly boost their annual income.

HOUSING. The military offers housing or a housing allowance to all servicemembers, a benefit that is tax-free.  Many enlisted and officer personnel live in on-base, government-owned accommodations, whether, as people without dependents, in barracks or Bachelor Officer Quarters, or, with dependents, in apartments or houses.  These are cost-free and include utilities, obviously representing a substantial benefit. 

However, if uniformed employees elect to live in on-base private housing or they prefer to live “on the economy,” their monthly paycheck includes a tax-free Basic Allowance for Housing.  The amount depends on the base location (and relative cost of living), pay grade/rank, and whether the servicemember has dependents.  The amount servicemembers can expect in their allowance is based on their being responsible only for 5% of the national housing cost by pay grade.  

For that theoretical E5, for instance, who has no dependents, is stationed in the very expensive San Diego, and is living on the economy, for the year 2023 she could expect an additional $2844 in her monthly base paycheck.  If she has dependents, she could expect an additional $3792. This represents between about $35K to $45K tax-free dollars annually, a significant increase from the Base Pay of $44K. The theoretical O5 who is also stationed in San Diego without dependents and is living on the economy could expect an additional monthly $4056 and, with dependents, $5196.  This represents $49K to $62K tax-free dollars annually on top of Base Pay of $104K.  

If the E5 were stationed at the rural, much less expensive Fort Gregg-Adams, Virginia and had no dependents, she would find an additional $1614 on her monthly paycheck, and $1950 if she had dependents. This represents between $20K and $24K tax-free dollars annually on top of the same Base Pay, $44K.  The O5 at Fort Gregg-Adams, without dependents, could expect $1986 additional tax-free dollars or, with dependents, $2607.  This represents between $24K and $32K tax-free dollars annually on top of the same Base Pay, $104K.   This tax-free allowance can also be used to pay a mortgage, rather than rent, and with a lower-interest-rate and no-down-payment-required Veterans Administration loan, servicemembers can further enhance their financial wealth using taxpayer monies.

SUBSISTENCE ALLOWANCE

This is another tax-free allowance provided to all active-duty servicemembers to “offset costs for a member’s meals” and is “linked to the price of food.”  Officers currently receive $311.88 per month and enlisted members receive $452.56.  For officers, this represents an additional $3742 annually and for enlisted, $5424.

OVERSEAS HOUSING ALLOWANCE

This is another tax-free allowance to help offset the cost of rent for servicemembers abroad, though it arrives as reimbursement for costs (rent, utilities, and moving costs) as opposed to a set amount in one’s paycheck.  This amount can vary widely at the many US military duty stations abroad.

MILITARY CLOTHING ALLOWANCE

This is another tax-free allowance that is added to the monthly paycheck.  There are four main types of payments: Initial, Replacement, Maintenance, and Extra, but officers receive only the initial allowance.  The amount varies by branch of service and sex of the enlisted servicemember, but they receive the allowance annually.  For instance, for replacement of uniforms in the Army, enlisted females receive $555 while enlisted males receive $544.  In the Navy, enlisted females receive $529 while enlisted males receive $536.

·      Additional Benefits

HEALTH AND DENTAL CARE 

Servicemembers and their dependents can seek cost-free healthcare and dental care at a government-owned hospital or clinic.  Should a hospital or clinic not be available, servicemembers can purchase the military’s Tricare insurance.  The cost is remarkably low.  For instance, if a servicemember is active-duty and has no dependents, the monthly premium is $12.36; with dependents, the cost is $32.13.  Dental care is largely provided at government-owned clinics, but there are no out-of-pocket charges if a servicemember needs to see a civilian dentist.

TAX-FREE FOOD, CONSUMER GOODS, GASOLINE, AND ALCOHOL. People with military identification cards have access to a bevy of taxpayer subsidized and tax-free consumer goods.

Commissaries are the on-base, full-service grocery stores.  They are funded with taxpayer dollars.  Items purchased there are tax-free, sold “at cost” with a 5% surcharge, and include beer, wine, and tobacco. It is suggested by the Defense Commissary Agency that regular shoppers save at least 30% of what they would pay in the civilian economy.

Exchanges are the equivalent of a department store in the civilian world.  They are not funded with tax-payer dollars.  Nonetheless, their goods are tax-free, they offer “military exclusive pricing,” and all of their profits are said to go back into the local military community.

Gasoline Stations are part of the Exchanges.  Per the US Congress, their prices must include federal and state motor fuel taxes.  Still, that price is “equal to the lowest price surveyed [locally] for each grade of fuel sold.”

Alcohol: The on-base store that sells alcohol—and not just beer and wine—has been known as the Class 6 store.  They are not funded with taxpayer dollars.  However, bottles of Jack Daniels and Jim Beam, for instance, are purchased in bulk, are sold at discount prices, and are tax-free.  

LIFE INSURANCE, VETERANS’ BENEFITS, COLLEGE FUNDS, PAID LEAVE, and PENSIONS.  A reminder: These are all paid for or subsidized by taxpayer dollars.

LIFE INSURANCE  Servicemembers, their dependents, and veterans have access to a $500K life insurance policy for $30 per month.

VETERANS’ BENEFITS  “VA benefits include disability compensation, pension, education and training, health care, home loans, insurance, Veteran Readiness and Employment, and burial.”  These are mostly tax-free.

COLLEGE FUNDS:  Up to $4500 a year is available as Tuition Assistance to active-duty servicemembers.  The Post-9/11-GI Bill, available to active-duty and servicemembers who have left the service, can include complete coverage of tuition and fees, a monthly housing allowance, a books and supplies stipend, and the transferability of these benefits to dependents.  The Military College Loan Repayment Program is an incentive for new recruits that eliminates up to $65,000 in existing student loan debt. 

Finally, as I have already pointed out in Posting # 6, “The story of affirmative action,” the sons and daughters of career military personnel are advantaged in seeking Presidential nominations to the service academies.  These academies do not charge tuition, fees, medical and dental insurance, or room and board, and cost taxpayers at least 250K for the four years.  Cadets also receive a monthly stipend (between $200-$525) to pay for their other school and personal expenses and, if they are not claimed as a dependent by their parents, pay taxes on the stipend.

PAID LEAVE  Servicemembers earn 30 days of paid leave, 2.5 days per month.  Typically, 60 days can be carried over from year to year.

PENSIONS  Since the privatization of retirement savings in the late 1970s and early 1980s, pensions have become a rarity in the US civilian world.  They still exist in the US military world.  Servicemembers who work on active duty for 20 or more years are eligible for a taxable retirement pension.  For many servicemembers, this means they will retire at a young enough age—late 30s, early 40s—to take up other gainful employment.  The amount of their annual pension payment relies on their final pay grade/rank. For instance, an E7 could retire with a $27,827 annual payment, and an O7 could retire with a $96,542 annual payment. (Social Security payments are unaffected by having a military pension.)

So what?

These are excellent benefits, ones I don’t begrudge military workers.  I wonder, though, why all American workers don’t have them.  Why don’t we have tax-free housing costs, let alone a tax-free allowance from our employer?  Why don’t we have free or extremely low-cost health and dental care?  Why aren’t we given an allowance for work clothing and an allowance to help cover the cost of feeding oneself and one’s family?  Why aren’t our foods and consumer goods offered at cost only with minimal profit?  Why aren’t employers forgiving student loans or providing educational benefits? (Full disclosure: my children received limited educational benefits from my higher-ed employer.)  Why don’t all American workers have 30 days a year of paid leave, and why on earth are pensions so scarce these days and a pension after only 20 years of employment unheard of?

I suggest the answer to these questions is because, if all of us American workers had these benefits, we’d live—horrors!—in something more like a social democracy, not unlike the political orientations of many European countries.  In the case of the US Military, the government takes care of the nation’s workers so as they do their work, they do not have to worry about housing, healthcare, clothing, and food.  Presumably, this support is what enables “the best military in the world.”  I’m guessing that because we Americans don’t typically have this support, it would be unacceptable for most of us, especially our employers who rely on huge profit margins.  Yet it is apparently okay for the US military to, in many respects, mirror those social democracy countries.  How ironic is it that, with its many tax-free and taxpayer-subsidized benefits on top of Base Pay, plus a pension, the US military might be the most socially-democratic of American institutions?

Is this what is meant by American servicemembers being self-sacrificing?