In spite of the across-the-board spending cuts instituted by sequestration, it appears that Congress still has an appetite for constituent-focused spending projects. In the case of the Abrams tank – which has been used by the U.S. military for generations – money is being approved for an upgrade initiative that the Defense Department has decried as an unnecessary waste of money.
Congress, which ultimately controls the purse for the U.S. armed forces, has directed $436 million to the Abrams retrofitting since 2010. According to The Associated Press, the effort to continue funding the upgrades appears to have bipartisan support.
The drive is being spearheaded by Ohio's congressional delegation, led by Representative Jim Jordan and Senator Rob Portman. This is because the town of Lima, Ohio, is the site of a manufacturing plant headed by General Dynamics, one of the largest defense contractors in the United States. Supporters say that the business drives millions of dollars in local economic activity per year, and that allowing it to close – which would occur if the Abrams project is shuttered – could send ripples through the national economy.
"Look, [the plant] is in the 4th Congressional District and my job is to represent the 4th Congressional District, so I understand that," Rep. Jordan said when asked about the assertion that he was funneling money to businesses in his home state. "But the fact remains, if it was not in the best interests of the national defense for the United States of America, then you would not see me supporting it like we do."
This story highlights the continued misuse of government funding on misguided defense projects. As we've stated previously on this blog, fiscal imprudence is dangerous for investors in the U.S. economy. Because of this, those with a financial stake in America should do what they can to generate additional income such as cash flow real estate. To learn more, download our "Free Game Plan Report" today.