Military Contractors Should Be More Concerned About 2013 And Beyond
The fact that the Obama administration’s proposed Pentagon spending reductions are not likely to be enacted in 2012 should bring little comfort to the contracting community.
Even if they’re not put in place this year, reducing the military budget from current baseline levels will be hotly debated this year and be a campaign issue.
This is likely to change the budget debate that has occurred since at least 2001 from how much should 2 military spending rise to which reductions are most acceptable. That’s a significant change.
Without an external shock that alters this outlook such as a terrorist attack or new overseas contingency, this changed debate will last at least until a significant deficit reduction plan is adopted, and, regardless of who gets elected and which political party controls each house of Congress, it will make the Pentagon as much a part of that discussion as Medicare and Medicaid.