Arms Companies Gripe About Sequester as Profits Soar

Gloomy Lobbying Predictions Didn't Pan Out

A decade-plus of annual records in military spending had the United States centered around a wartime economy, and sequestration, with its relatively modest cuts in spending, would be enough to send the whole system crashing down.

At least that was the theory put forward by lobbyists for the arms makers in fighting budget cuts in Congress. The gloomy predictions never panned out, however, and the major contractors are enjoying massive and rising profits, even as their overall sales dip somewhat.

Lockheed Martin explained their rising profits as a function of several years of layoffs and “slimmed down” facilities, though analysts also point to huge cash reserves they’ve built up from a decade of juicy war contracts.

Still, the companies’ bottom line is going to cost their lobbyists some credibility, especially as they continue to push Congress to roll back sequestration and ratchet up spending once again. The claim that the companies are in dire straits without more runaway spending just doesn’t hold water.

Author: Jason Ditz

Jason Ditz is Senior Editor for Antiwar.com. He has 20 years of experience in foreign policy research and his work has appeared in The American Conservative, Responsible Statecraft, Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times, and the Detroit Free Press.