Slower Military Spending Said to Drag Down Growth
JULY 05, 2012
“Tighter defense budgets are starting to pinch the nation’s economy, slowing a sluggish recovery even before sharper spending cuts could kick in next year. . . . The Bureau of Economic Analysis . . . said last week that weaker defense spending shaved half a percentage point off first-quarter growth. . . . Already, defense contractors are feeling the effects. Lockheed Martin CEO Robert Stevens said recently that his company’s workforce is 18% smaller than three years ago, and ‘the pace of our hiring has slowed considerably.’” (USA Today)
But those workers didn’t make anything consumers wanted!
FEE Timely Classic
“Can America Afford an Empire?” by Sheldon Richman