US defense budget spreads the wealth

by: Matthew Potter
June 1, 2008

Category: development program, DRS Technologies, Federal Budget Process, IT, logistics, production program, SETA | RSS 2.0

These three articles illustrate how the US defense budget as it has grown over the last several years effects localities economically. This one and this one discuss how Western Pennsylvania relies on the budget to support local industry. This article about Hawaii shows the effect of the Pacific Missile Range Facility on the island of Kaua’i. Although tourism is the major economy on that island the conduct of AEGIS missile defense tests certainly adds money to the local economy. The defense budget is the largest discretionary part of Federal spending. It also buys large, manufactured items as well as the services of well-educated and highly-trained workers. Also law drives many of the companies to reside in the US, which is not true of all of the things the Federal government buys. This means that one or two contracts awarded to an area can generate a lot of secondary spending. If the US Defense budget declines with a new administration it will have a negative effect on the economy of many parts of the US.

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