The Wall Street Journal is very concerned about the effects of the debt limit fight…on military contractors. In an article (5/12/23) headlined “Debt-Ceiling Fight Weighs on Defense Industry,” the paper reported, “If the US defaults on its debt and is unable to pay all its bills this summer, the pain will fall squarely on the defense industry.” A default could disrupt payments to military contractors, the Journal pointed out, and even a temporary suspension of the debt ceiling for several months “would raise the likelihood the Defense Department will have to make do with a temporary budget known as a continuing resolution.” This would likely “inflate the costs of military programs, delay the launch of new ones and prevent production increases.” In short, weapons producers might feel a momentary pinch after years of war profits.
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