Monday, July 20, 2020

Pentagon seeks billions for US arms makers from funds meant to save economy from negative effects of COVID-19 pandemic

(April21)As debate is picking up for the US to pass another emergency stimulus package to counter the economic damage produced by the COVID-19 pandemic. The Pentagon is lining up well-connected US arms makers, some already the most heavily subsidized companies.

US official's statement

Ellen Lord US Undersecretary of Defense claims the pandemic is negatively effecting ship-building, aviation, and space launch companies. She said that the Pentagon is planning a major pay-day for companies in these arieas, billions and billions.

Lord said that out of 10,509 Defense Department contractors, 106 are closed with 68 companies having closed and reopened. Of 11,413 subcontractors, 427 are closed with 147 having closed and reopened
Big winners are big companies
While there is some talk of some small space launch companies as having to shut their doors because of the pandemic this covers up the fact that the big winners will be the handful of large US companies that are constantly receiving large subsidies from the US government. Many of the smaller companies that will receive funds are suppliers to these large companies.
Those receiving the most money are to be Lockheed Martin and Boeing. Boeing is already expected to seek funds from the airliner bailout. Money will also go to some of their suppliers so that their chain of supplies is not cut off. Lord did not single out any particular programs that could be negatively impacted by the pandemic but claimed that not approving the bailout could cause inefficiencies and other negative effects.
Not clear what view legislators will take of Pentagon demands

While Lord , as mentioned, had not picked out particular programs that the COVID-19 pandemic would hurt she said it could negatively impact on major programs: “We are just now looking at key milestones that might be impacted,. We believe there will be a three-month impact that we can see right now. So we’re looking at schedule delays and inefficiencies and so forth.”
Even though the COVID-19 relief bill is not a military funding bill, legislators seem usually to approve funds spent for military purposes. Weeks ago President Trump signed a $2 trillion COVID-19 bill as shown on the appended video.

Previously published in the Digital Journal

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