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Is there a solvent industry left in this country?

January 5, 2009

Yesterday, I read a post in the Seattle Times titled Steel industry hopes for big stimulus shot. It seems that everywhere you look, another “major industry” is headed toward bankruptcy — and another union is unbending in its lack of desire to work with the industry that for years provided jobs for its members and fat bank accounts for the union (a business) and its employees.

So the question for the day is this… is there a solvent industry left in this country? One that does not have to borrow money every month to make payroll? One that is competitive both at home and in the world markets?

If you are a Defense contractor, the answer is “yes.” Think about that for a while. Then ask yourself why they have money and everyone else is broke. When you have an answer for that question, ask yourself this one… where will these companies go to ensure continued profitablity when the U.S. government can no longer afford to fund the Department of Defense and, by extension, its contractors?

Before you start flaming me for that last question, remember the briefing from the previous GAO chief (David Walker) who told us unequivocally that unless we make some hard choices right now, in a few short years, we will run out of money to do little more than fund Social Security, Medicare and service the interest on our national debt. He said that in 2005, and we have only exacerbated our financial malaise since them. In the interim, our national debt has grown by more than $4 trillion.

So where will those weapons manufacturers go to ensure the continuation of the revenue streams to which they’ve grown accustomed? Who will purchase those weapons? More importantly, at whom will they be aimed?

Think about that over breakfast tomorrow.

Until next time,
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