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Defense Industry: Keep Paying Us or the Economy Dies

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n2doc Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 08:37 AM
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Defense Industry: Keep Paying Us or the Economy Dies
By Spencer Ackerman


Defense giant Lockheed Martin had a totally sweet quarter, raking in $700 million and looking forward to the same this time next year. So it raises eyebrows when Lockheeds anointed mouthpieces predict mass economic disaster if Congress touches the defense budget.

On Tuesday, the aerospace industry put out a report saying that chopping the defense budget would put over a million Americans out of work. Cuts that could total up to a trillion dollars over 10 years would devastate the economy and the defense industrial base and undermine the national security of our country, said Marion Blakeley, president of the Aerospace Industries Association, which sponsored the report.

But while Blakeleys group paid for research to draw that dire conclusion, some of her members reported a sunnier economic outlook to their shareholders. In its third-quarter earnings report, also released Tuesday, Lockheed manufacturers of the F-22 and F-35 jets told investors to expect that as long as Congress passes President Obamas next defense budget, the Corporation expects 2012 net sales to be flattish as compared to 2011 levels, and that consolidated 2012 segment operating profit margin will remain at approximately 11 percent. Boom: another $700 million in earnings, on its way.

While theres no doubt that defense cuts will mean job losses, theres also no doubt that a report prepared for an industry so reliant on defense cash will paint a stark picture of what happens if that cash is threatened. Congressmembers looking to get reelected pay attention, since fighting for defense money as a jobs program is easier than making a case for what a sensible, appropriately funded defense strategy ought to be. Thats the problem with reports like these: They make it easy to ignore structural economic and defense problems and imply that all will be well if the cash keeps flowing.

more

http://www.wired.com/dangerroom/2011/10/defense-industr...
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 08:46 AM
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1. I don't know which are the biggest extortionists, banks or "defense" contractors....

nt


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n2doc Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 09:11 AM
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2. Funny how building roads, schools, bridges in this country is 'unaffordable'
But building bombs and warcraft is 'necessary' . Something not quite right with that logic, wouldn't you say?
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hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-27-11 09:15 AM
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3. The defense budget is about 5 percent of GDP - economic health is not dependent on military spending
one way or the other.
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