Thursday, August 02, 2012

Talking Points re Defense Budget

With all the recent hullabaloo about what sequestration will do to people's jobs, POGO has produced a briefing paper which counters the arguments McCain, Graham and company are making for the defense contractors.  Here are POGO's major points, details are available here.
  • Pentagon contractors are making record earnings.
  • Even under the deepest cuts—the unlikely budget sequestration—Pentagon contractors have huge revenue streams for years to come.
  • If Pentagon contractors need to tighten their belts, they should start at the top. Contractor executive pay is out of sight, on par with Wall Street execs. 
  • There is plenty of fat to cut in mismanagement and waste by big defense contractors.
  • Defense contractors should cut their massive spending on lobbying and campaign contributions before layoffs.
  • Even if the deepest proposed cuts to the Pentagon budget—under sequestration—were to happen, there would still be record Pentagon spending.
  • Job loss threats are overblown political scare tactics.

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