I've had many conversations with buddies and the general agreement is an across the board cut of 10% in the Federal budget with an accompanying freeze in increases for at least 10 years would be a good start to solving the deficit issue.
The problem with this type of thinking (my type of thinking) is the unintended consequences of such actions. And there are alot of unintended consequences going on right now.
The President has called for even deeper defense cuts. The services will respond with cutting people first then it'll start axing procurement...we're already seeing the groundwork laid for that.
The problem is....people build all those fancy widgets and if we act without full realization of those consequences then we could sink an already sick economy.
Exhibit number one from Defense News.
Lockheed Martin announced June 30 that it would eliminate approximately 1,500 jobs from its Aeronautics business. The cuts represent a 5 percent reduction in its workforce of about 28,000 employees located at sites in six states.Tomorrow the Dow Jones average will plummet. What should an individual do?
"We're taking what we think are bold and responsible actions given the defense environment," said Joe Stout, a spokesperson for the company's Aeronautics division.
The cuts come as part of a larger effort to curb costs and maintain affordability, Stout said.
"Our customers around the world are facing greater pressure, and we know we need to respond," he added.
My recommendation.
Keep it dry and stack it deep. This (the economy) is going to get much nastier before it gets better.
