Huge pensions for retired government workers can be found from small municipalities to national governments on both sides of the Atlantic. There is a reason. For elected officials, pensions are virtually the ideal thing to spend money on, politically speaking. Many kinds of spending of the taxpayers' money win votes from the recipients. But...
Don't know where you gathered your facts and conclusions but they don't match what I was taught and observed during a twenty year career, The Zero, though not as heavily armed, could and did fly circles around anything we had. The only "superior" plane that was better than anything we had was the German ME262. It's late entrance into the war and Germany's lack of production facilities, negated its impact.
A nation's choice between spending on military defense and spending on civilian goods has often been posed as "guns versus butter." But understanding the choices of many nations' political leaders might be helped by examining the contrast between their runaway spending on pensions while skimping on military defense.
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