RECENT NEWS
TheStreet.com  Dec 3  Comment 
Investors are confronted with a choice of aerospace and defense funds that figure to benefit from President Obama's decision to send more troops to Afghanistan.
Top Foreign Stocks  Nov 15  Comment 
The outstanding US public debt is over $11 Trillion and the interest payments alone total over $22B per month. The unemployment rate reached 10.2% in October. The number of unemployed persons now stands at 15.7 million. The true unofficial...
George Washington's Blog  Nov 14  Comment 
I've written two essays attempting to disprove "military Keynesianism" - the idea that military spending is the best stimulus. See this and this. In response, a reader challenged me to prove that anyone would advocate military spending or war as...
naked capitalism  Nov 13  Comment 
Yesterday, I pointed out that a study by one of the leading economic modeling companies shows that military spending increases unemployment and decreases economic growth. I have located (giant hat tip to Gordon)  a paper by economist Robert...
George Washington's Blog  Nov 12  Comment 
Yesterday, I pointed out that a study by one of the leading economic modeling companies shows that military spending increases unemployment and decreases economic growth. I have located a paper by economist Robert Pollin published in 2007 by The...
The Economist  Nov 8  Comment 
And other fantasies RYAN AVENT, who writes for our economics blog, wonders what would happen "if for one year — just one year — we allocated as much money for infrastructure as we did for defense?:With that...
Bloomberg  Oct 28  Comment 
President Barack Obama signed legislation today adding gays to the list of groups covered by the federal hate-crime law, the biggest expansion of such protections in decades.
MarketWatch  Oct 27  Comment 
The White House says President Barack Obama would approve the Defense Department’s $680 billion budget for fiscal 2010, which includes funding to increase military personnel and support the ongoing conflicts in Iraq and Afghanistan.
Wall Street Journal  Oct 21  Comment 
Boeing and Northrop posted sound operating results for their defense businesses, but face uncertainty about Pentagon spending.
Reuters  Oct 13  Comment 
Major U.S. defense contractors, braced for restrained U.S. spending and higher pension costs, are likely to forecast flat or slow growth for 2010, while commercial aerospace firms could offer more evidence that economic conditions are firming.
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Defense spending is the amount the sovereign of a country invests in weapons, weapon systems, and soldiers.

It is impossible (today) to get perfect exposure to increases in defense spending, because not all beneficiaries of increases are private companies - i.e., increases in defense spending could be used for increases in soldiers' salaries. (However, PMCs are becoming more widespread at it is not impossible to imagine a time when all soldiers are private contractors.)

Major defense companies include Lockheed Martin (LMT) , Raytheon Company (RTN) and Boeing Company (BA). Defense companies that focus on software include SAIC (SAI). One OTCBB listed security within the defense sector is Sector 10 (SECT).

iShares ETF (ITA)

Trends in US Spending

Largest Spenders

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