This week the Lexington Institute released a study I wrote detailing how the performance of industrial functions by military depots, arsenals, shipyards and logistics centers may be detrimental to national economic competitiveness. It argued that such facilities drive up the fixed costs of the federal government, fracture the product life-cycles of combat systems, undercut economies of scale, slow the pace of industrial innovation, and deprive key exporters of sales that might make their products more price-competitive. This is one of many areas where the government needs to think through more carefully how defense spending impacts on the broader economy. You can read the full report here.
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