Carol L. Cook
So, we see that the Defense industry has a strong impact on the Aerospace Industry. When a great deal of money is being put into the Defense Industry, it has all kinds of needs produced by the Aerospace Industry. Millions of Aerospace workers have jobs, and they are contributing to the growth of our U.S. Economy by purchasing many things. However, when Defense spending is cut, then, there isn’t a need for as many Aerospace employees, and they are laid off. When these employees are laid off, they are not able to buy anything. Thus, others in the U.S. Economy begin to be laid off, too, since there isn’t as much need for goods and services. Since the Aerospace industry is so large, it has a powerful impact on the U.S. Economy.
When there is any kind of war, the Defense spending grows and the Aerospace Industry grows. But, in peace time, Defense spending is cut and so is the Aerospace Industry.
Many people are encouraging better use of our skilled scientist and engineers during these cutbacks. It is hoped that more research and development will take place during these periods. And what does the future seem to hold for the Aerospace Industry?
It seems as if Western Europe will have the greatest impact on the U.S. Aerospace and Defense Industries in the coming decade, and it is the changes now taking place there that are both the most fundamental and least understood in the U.S.
Eastern Europe is going to command the headlines for a long time as it undergoes further unprecedented changes. But, it is going to be even longer before it becomes an economic power, or even an economic entity. The Pacific Rim, with Japan as its economic centerpiece, also will be highly visible as the economic balance of power swings in that direction.
The changes under way in Western Europe will be every bit as fundamental as those in Eastern Europe, and they will have both more drastic short and long-term effects on the U.S. than will the changes in Eastern Europe or the developments in Asia.
The predominant event of the 1990’s in Western Europe will be the development of the existing European Community into, first, an economic union and, more importantly but less understood, into a political union. As this union develops, it is going to focus the economic muscle of Western Europe into a new competitive force, quite capable of taking on the U.S. or Japan on even terms, if only the will and direction are forthcoming.