This is an original and thoughtful account of how the American army (and the army is the overwhelming focus) came to view itself, its soldiers, and the pay and benefits it provided, and how those ideas redounded onto the broader American political scene.
The author begins the story with the Gates Commission, the group of free-market economists, such as Walter Oi, Milton Friedman, and Martin Anderson, that worked to end the draft, and who hoped to instead entice new recruits into the army with pure monetary incentives and increased pay. The army fought it, with Chief of Staff William Westmoreland bemoaning the creation of an "army of mercenaries," and enlisted Senator John Stennis and Lyndon Johnson into their cause. The commission triumphed by 1971, but the army fought back by expanding an array of non-pecuniary services to soldiers to entice them to join, as part of a new "Army Family." They especially increased benefits to the first and second termers and enlisted men who previously had no housing or travel benefits despite all their deployments, and gave them variable housing allowances and junior enlisted travel benefits, among other enticements. As the army in the 1970s became more black (up to 1/3), more female (up to 1/10), and acquired more low-education recruits (up to half had not completed high-school, though blacks and females generally had higher education than white males), the importance of such a support network increased. In the 1980s, despite opposition from economists such as Martin Anderson, Reagan signed a new permanent GI BIll in 1986, pushed by Democratic Representative Sonny Montgomery, to replace the one that had expired 10 years earlier, and which provided new kinds of higher education benefits for enlistees.
After the Gulf War, however, and the post-Cold War "drawdown," there arose the perception that soldiers and especially their families had become too dependent on benefits and programs, such as the Family Support Groups, which had taken care of them. Joshua Gotbaum of Lazard Freres helped promote an outsourcing of services such as the new "Residential Communities Initiative," which from a 1996 law had private contractors build and run army housing. Meanwhile the Army Morale, Welfare and Recreation (MWR) agency, which funded bowling, ping-pong shops, gambling parlors and sundry entertainments, became a self-funded corporate-style enterprise, with its own logo and board of trustees. The welfare and benefits remained, but became more devoted to modern business-style outsourcing and a supposed decrease in direct "dependence" on the government.
This book then is an interesting and well-told explanation of a parallel welfare state, one with both similarities and differences to the more famous civilian examples, and with similar trends. The book might have been helped by being a little more clear about how much army "benefits," say per capita or on total, rose and fell in these years, and how their composition changed, but on the whole this is a wonderful addition to the canon of American state-building, which tells a little known but important story about American governance.