Despite all of the hype coming from defense contractors and others that Pentagon spending reductions would devastate the industry and lead to mass lay-offs, economic ruin and the collapse of our fighting forces, these companies managed to take in a pretty penny this last quarter.
Both Lockheed Martin (maker of the $1.5 trillion F-35 debacle) and Northrop Grumman posted huge profits, with Northrop’s shares rising 56%. Even companies that didn’t do as well posted profit increases over last year – before spending reductions went into effect.
Though defense contractors are doing just fine financially (thank you very much), the CEOs plan to “up the volume” on efforts to pad
their bank accounts the Pentagon’s budget with new tales of doom and gloom.
But it’s not just defense contractors sounding the alarm; the Joint Chiefs of Staff are also making the case for increased Pentagon spending, going so far as to understate their own troops’ combat-readiness. And of course, the defense hawks in Congress are more than happy to go along for the ride – even suggesting that lawmakers take money away from the elderly, disabled and small children so the Pentagon can have more funds to spend on things like this.