Russia Invades Georgia: Defense Contractors Declare Victory
Monday, August 18, 2008 at 11:37 am
The Wall Street Journal’s August Cole had an interesting take on Russia’s invasion of Georgia this weekend: it’s great for Lockheed Martin, Boeing and other mega-defense contractors. A stock analyst is quoted as saying that the invasion was "a bell-ringer for defense stocks."
Defense Secretary Robert Gates has recently thought out loud about cutting major weapons programs like Lockheed and Boeing’s $143 million F-22 Air Force raptor jet and Boeing and SAIC’s $160 billion Future Combat Systems. Gates has argued that they bear no relevance to counterinsurgency fighting that is currently taking place in Iraq and Afghanistan. But Russia’s invasion of Georgia at least raises the possibility of a future U.S.-Russia conflict. according to Rep. Jack Murtha (D-Pa.), who said as much to the Journal.
But Murtha’s analysis and that of other lawmakers may have more to do with the jobs these weapons systems generate for their constituents. Murtha now wants to spend $523 million to buy 20 more F-22′s than the White House has proposed. So I guess if Russia launches a full-scale aerial war against the U.S. and America isn’t prepared, we shouldn’t blame Jack Murtha.
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