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October 29, 2012November 19, 2013Loren B. Thompson, Ph.D

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Five Ways President Romney Would Be Good News For The Defense Industry (From Forbes)

October 29, 2012November 19, 2013Loren B. Thompson, Ph.D

Defense executives in the nation’s capital are less worried about Hurricane Sandy than they are about the budgetary storm that will befall federal spending at year’s end, but if Mitt Romney is elected president their fears are likely to dissipate quickly. The Obama Administration has set defense spending on a downward trajectory, however Romney is pledged to reverse that trend and his activist foreign policy will require a robust military posture. Like past Republican administrations, Romney would increase spending on the weapons accounts that drive defense-equity valuations. His spending priorities reflect deeply held Republican beliefs, which favor a strong defense posture while questioning the legitimacy of the welfare state. Budget sequestration notwithstanding, a Romney presidency would be good news for weapons makers. I have written a commentary for ForbesĀ here.

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