Chris Deluzio: “The defense industrial base is dominated by a handful of massive corporations that have gobbled up competitors. These…”

“The defense industrial base is dominated by a handful of massive corporations that have gobbled up competitors. These five companies have a lot of power and responsibility to supply our military. But what are they doing with that power? Are they investing in innovation? They are enriching themselves with stock buybacks and shareholder dividends, fueled by public money, while shrinking their investments to innovation. The Pentagon has reported that over the past decade, research and development is down, but corporate payouts for prime contractors are up. Meanwhile, they are lobbying Congress for more cash every year. Top brass warn that late, over-budget defense orders threaten our readiness. National security shouldn't be subject to the whims of Wall Street or crazy ideas of shareholder primacy. Public money shouldn't bankroll stock buybacks. It doesn't have to be this way. We should, once again, ban buybacks. They used to be illegal, and should be again. We need smarter industrial policy to break up these monopolies so we have got real competition in the defense industry. ____________________”