That Time The Military Let $2.3 Trillion Go "Missing" - How Money Works | How Money Works

Oct 8, 2025

Uncover the astonishing tale of $2.3 trillion that vanished within the military budget, sparking public outcry and conspiracy theories. Explore the amusing absurdities, like a $10,000 toilet seat, highlighting the chaos of military spending. Delve into the baffling accounting challenges faced by military accountants and the outdated practices that led to such staggering discrepancies. This financial fiasco invites a critical examination of accountability and the role of money in politics, leaving listeners questioning the integrity of defense finances.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Timing Changed The Story

Donald Rumsfeld's announcement about $2.3 trillion missing was drowned out by 9/11 the next day.
The timing shifted public focus from outrage to support for the military.

INSIGHT

Secrecy In Military Accounting

The DoD must keep detailed records for purchases from office supplies to major acquisitions.
Some military-ledgers are classified, so secrecy can be preserved without using code words in entries.

ANECDOTE

The $10,000 Toilet Seat Explained

The $10,000 toilet seat story became shorthand for military waste and possible kickbacks.
The episode explains the part was unique, installed by licensed technicians, and truly expensive to produce.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

That Time The Military Let $2.3 Trillion Go "Missing" - How Money Works

Sign up to Morning Brew for a totally free selection of high quality business, finance and general interest articles delivered direct to your inbox every morning - https://morningbrewdaily.com/howmoneyworks

In 2001 defence secretary Donald Rumsfeld announced that the department of defence had lost more than 2.3 trillion dollars.

At this time the entire federal budget was only 1.8 trillion dollars which meant that the military had basically just oopsied away more than a years’ worth of the governments entire bankroll.

The public was furious to say the least, and rumours quickly started circling about where this money ended up.

Fortunately for Rumsfeld and the entire militaries senior brass the public announcement of the missing money was made on a very opportune day, September 10th.

#HowMoneyWorks #business #finance

Edited By: Andrew Gonzales

Music Courtesy of: Epidemic Sound

Select Footage Courtesy of: Getty Images

All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.

Follow to learn How Money Works.

Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks

Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.

--------------

Learn more about your ad choices. Visit megaphone.fm/adchoices