Cutting The Budget By $85 Billion Per Month = Bad Time For Private Contractors
War is said to be good for business; it increases government contracts while simultaneously creating jobs but what goes up must come down. With the U.S. withdrawing troops from the Middle East and the recent cuts in spending, private contractors and other businesses that benefited from the conflict are bracing for the inevitable downsize. One of the Pentagon’s biggest contractors however, has begun a lobbying campaign in the hopes of protecting jobs in its York, Pennsylvania production plant. BAE Systems PLC is attempting to convince lawmakers in Washington to divert funds so the company can continues its production of Bradley fighting vehicles which cost about $3.1 million apiece.
BAE had 3,000 workers at its York production plant at one point; a figure which has fallen to 1,250. If BAE is unsuccessful in convincing members in congress to divert funds, it will be forced to lay off an additional 250 workers. The growth of the economy is stalling and unfortunately this company is not the only one adversely affected by the sequester cuts.
Source: The Wall Street Journal