Planet Earth is as dangerous place as it’s been since World War II, with hostile powers convinced that the Pax America is ending, thereby opening the door for all kinds of mischief. China’s saber-rattling about taking over the world, the Russian invasion of Ukraine, Turkey’s desire to rebuild the Ottoman Empire, the Iran’s attacks on, well, everyone.
The way to prevent wide-scale conflict is for America to maintain its military superiority – particularly air dominance. It’s not 2005: defense contractors can’t continue gorging themselves at the trough just because they can. We need them to actually defend us.
So Americans of all political stripes can appreciate that President Trump has taken defense contractors to the woodshed after 20 years of War on Terror-era excesses. In January, he issued an executive order titled, “Prioritizing the Warfighter in Defense Contracting,” which rebukes contractors who profiteer off the business-as-usual contracting environment. The EO forbids such contractors from paying dividends or buying back stock when they fall short of their contracted goals.
With refreshingly pragmatic language, the President said:
“Although some contractors have made critical investments in increased production capacity and been responsive to our Nation’s vital interests, far more have not. Many large contractors — while underperforming on existing contracts — pursue newer, more lucrative contracts, stock buy-backs, and excessive dividends to shareholders at the cost of production capacity, innovation, and on-time delivery.”
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