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Defense !—F-35—A2: Inefficiency



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Defense !—F-35—A2: Inefficiency


The F-35 doesn’t spend a lot of money
Smith 11 (Rich, Staff @ MotleyFool, 5/27, http://msn.fool.com/server/printarticle.aspx?file=/investing/general/2011/05/27/everybody-hates-lockheed.aspx?logvisit=y)

Here in the 21st century, "trillion" may be the new "billion" -- but it's still not a lot of money. Not when you consider what we get for it. For one thing, a "trillion dollars" spent over the anticipated 50-year lifetime of the Lockheed F-35 only works out to about $20 billion a year. Add in the flyaway cost of the plane itself, and the tally rises to $27.7 billion -- or less than $100 a year per U.S. citizen. When you consider that: the F-35 isn't "just another airplane," but the single fighter jet designed to replace multiple fighters already in our air forces according to Joint Chiefs Chairman Admiral Mike Mullen, this is the last manned fighter jet we'll ever but and that the $1.385 trillion figure covers the cost of the planes, their fuel, maintenance, training -- plus the cost of hangars, spare parts, and inflation even I submit to you that we're really "not paying a lot for this muffler." The F-35's annual cost will make up all of 4.1% of our 2012 defense budget -- and that's not a lot of money to buy an air force.


F-35’s key to US military and aerospace revenues
Smith 11 (Rich, Staff @ MotleyFool, 5/27, http://msn.fool.com/server/printarticle.aspx?file=/investing/general/2011/05/27/everybody-hates-lockheed.aspx?logvisit=y)

In short, this "trillion-dollar price tag" really isn't as big a deal as the Journal makes it out to be -- at least not for taxpayers. In contrast, a trillion dollars is pretty significant to the companies that will be building and maintaining the plane -- subcontractors like GE, UTC, Honeywell (NYSE: HON ) , Northrop Grumman (NYSE: NOC ) , and FLIR Systems (Nasdaq: FLIR ) (these latter three being responsible for the plane's wheels and brakes; its software, fire control radar, and communications; and its infrared radar, respectively.) And of course, to Lockheed itself. Make no mistake: The F-35 is crucial to the U.S. military's long-term planning. It will make up an important, and growing, portion of the revenue streams of Lockheed's partners. But as I think I've mentioned before, the F-35 is absolutely central to the investment case for Lockheed itself. Revenues from U.S. F-35s alone could secure an average of 60% of Lockheed's annual revenue stream for the past 12 months -- for the next half-century. Factor foreign F-35 sales into the mix, and Lockheed could put perhaps 75% of its revenue stream in the bag from this one product alone.


F-35’s are efficient
Carden 11 (Michael J., Army Sgt. 1st class, 2/16, http://www.defense.gov/news/newsarticle.aspx?id=62829)

The right plan is in place to ensure the program is efficient in terms of cost-savings and production, he added, noting that the program has undergone an intense technical review under his watch. The latest restructuring, he said, was realistic, achievable and based on deep assessments of all aspects of the program. “Previous plans had shortcomings, but this plan is very resilient,” he said. “The plan has been able to overcome spotty parts shortages, engine delivery problems, [and] it absorbed snow days where weather shut down production in the Dallas-Fort Worth area.” Venlet said he has instituted more testing, increasing the number of hours and flights that test pilots fly, having recently increased the mandated number of test flights through fiscal 2016 from 5,800 to 7,700. He’s confident, he said, that the additional $4.6 billion will hold up, as development and testing concludes in 2016. Competition for the F-35 contract began in 1996. The $200 billion contract was awarded to Lockheed-Martin in October 2001, and the program immediately went into a 10-year testing and development phase. The Defense Department plans to purchase 325 aircraft through 2016, and the overall program consists of 2,443 total aircraft in three different variations. The variations include a takeoff and landing variant for the Air Force, an aircraft carrier-suitable version for the Navy and short takeoff and vertical landing variant for the Marine Corps.




***General Links***


UQ – No New Spending


Republicans key—House influence, spending reduction commitment, elections
Chaddock 11 (Gail Russell, staff, Christian Science Monitor, 3/31, http://www.csmonitor.com/USA/Politics/2011/0331/Tea-party-rally-to-Congress-Spending-cuts-aren-t-deep-enough, accessed 6-30-11, CH)

But the tea party is still a powerful presence on Capitol Hill, especially within the House Republican conference. While only 57 of 241 Republicans formally joined the House Tea Party Caucus, most conservatives share the movement’s focus on cutting spending and reining in the size of government. Moreover, Republicans, including tea party Republicans, are wary that appearing to cave to Democrats on spending could leave them vulnerable to primary challenges from the right in 2012. “Democrats know that if main street Republicans and tea party Republicans split, it’s all over,” says 10-term Rep. Jack Kingston (R) of Georgia.


No new spending—Republicans control the House and the Senate will vote to appease voters
Morrissey 11 (Ed, blogger for Heritage, Hot Air, 5/11, http://hotair.com/archives/2011/05/19/coburn-we-have-to-raise-taxes-in-order-to-pass-spending-cuts/, accessed 6-30-11, CH)

Really? The polling I’ve seen indicates that voters don’t want tax hikes at all as a solution to the budget deficit. The latest came this week from The Hill, in which the largest plurality — 45% — wanted cuts alone. Only 28% were willing to personally pay higher taxes. Coburn does frame this as the only “plan that would ever make it out of Congress,” but is that so? Republicans control the House and aren’t likely to vote for tax hikes at all. Democrats control the Senate, but a large number of them have to face voters, and they have to be cognizant of the national mood — especially after the object lesson delivered to their colleagues in the midterms about voter anger. Barack Obama might veto a budget without tax hikes, but producing that kind of a budget from Congress is more likely at this point than getting John Boehner to commit political seppuku by pushing through a tax increase even before fighting for spending cuts.


Debt ceiling bargaining proves Republicans won’t approve new spending

Goldfarb and Bacon Jr. 11(Zachary and Perry, staff, Washington Post, 4/17, http://www.washingtonpost.com/politics/obama-to-hit-road-to-rally-support-for-debt-reduction-plan-ahead-of-budget-battles/2011/04/17/AFl50OwD_story.html, accessed 6-30-11, CH)

The first battleground for this debate will be the imminent clash on Capitol Hill over raising the limit

on how much the federal government can borrow. The Treasury Department has concluded that the $14.3 trillion debt ceiling will be breached next month and will have to be raised by early July. Republicans want legislation to reduce government spending to be part of the vote to raise the debt limit; the Obama administration has said that further deficit reduction is needed but that the issues should not be joined.


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