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Greg M. Jung
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Platinum
Effective Military Spending
Greg M. Jung   7/2/2013 12:41:42 PM
I believe that 'effective' military spending is a good thing.  I agree that inadequate military spending is bad for both our national security and for the manufacturing sector.  However, wasteful military spending is also harmful for the country as a whole.

I see where American companies and manufacturers now use lean, efficient techniques to reduce waste and compete.  Can the military also adopt some of these effective new techniques to be more competitive?  I'm not suggesting that we lose any 'muscle', I'm suggesting that wasteful spending be reduced to further improve the military's value to our national security and our economy.

Elizabeth M
User Rank
Blogger
Re: Manufacturing is stimulation
Elizabeth M   7/2/2013 10:13:21 AM
The military also is behind a lot of innovative R&D, so spending for the military may trickle down into areas that one might not think of. So I tend to agree with your sentiment, Rich.

Rob Spiegel
User Rank
Blogger
Manufacturing is stimulation
Rob Spiegel   7/2/2013 8:50:25 AM
Interesting thoughts, Rich. I agree that manufacturing is an economic stimulant. History shows it was heavy military spending on WWII that finally lifted us out of the  Depression. Recent cutbacks in military and other federal spending -- while intended to cut the deficit -- seem to have created a drag on what would otherwise be a more robust recovery.

The good news is that offshore manufacturing is coming back. Plus, there seems to be evidence that manufacturing that would otherwise be aimed for Asia is staying home. There are a ton of reasons, many of which are outlined in the Design News article on medical manufacturing: http://www.designnews.com/author.asp?section_id=1386&doc_id=264831

According to  A.T. Kearney's 2013 Foreign Direct Investment Confidence Index (FDICI) released last week, the U.S. has passed China to become the world's largest manufacturer again. So manufacturing is on the rise in the U.S. in spite of military cutbacks.

 

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