US defense budget spreads the wealth

June 1, 2008 by Dagpotter · Comment
Filed under: DRS Technologies, Federal Budget Process, IT, SETA, development program, logistics, production program 

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. Read more

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Decline in Federal spending may reduce business for contractors

April 14, 2008 by Dagpotter · Comment
Filed under: Congress, Department of Defense, Federal Budget Process, U.S. Dept. of Homeland Security 

This article in FederalTimes.com states that due to cutbacks in spending in the President’s 2009 budget the Federal government will reduce what it spends on contractors a substantial percentage. This is not only in DoD but also in Homeland Security and the State Department as well. Part of this is budget cuts to the various programs but also the predicted removal of US troops from Iraq. Whether this will really pan out will have to be seen. The final 2009 budget won’t be out until October-December, and there also may be various supplementals to support the war in Iraq and Afghanistan. At some point the wars will be winding down and this will have a significant effect on Defense’s spending. Historically the US budget for these activities have gone from boom to bust very quickly.

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