U.S. Defense Budget Cuts Have Not Happened Yet

Analysts: DoD Budget May End Up Too Important To Cut -- DoD Buzz

Doesn’t it feel like lawmakers, DoD officials and reporters all have been talking about major DoD budget cuts for so long they must’ve happened by now? There was a period earlier this year when it seemed like every Beltway Bandit with an email account was putting out a white paper that recommended ever-deeper slashes through Pentagon spending: The F-35, the V-22, Virginia-class submarines, the Expeditionary Fighting Vehicle — all of it had to go.

And yet, when you uncover your eyes and look around, here we are in July, with a new secretary of defense, and yet much of DoD’s major programs and bureaucracy are more or less intact. That may not last very much longer. Then again, investment analysts told CNBC’s “Fast Money,” the defense industry represents one of the most consistent, most effective sources of jobs and money for local economies, and if the Obama administration’s other attempts at “stimulus” fizzle, it’ll be difficult for Washington to cut too much defense spending as Congress and the president both face an upcoming election.

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My Comment: The cuts are coming .... but the DoD Buzz post is correct in assessing that for now .... especially with an election next year .... the cuts have not happened yet.