These 15 Big US Government Contractor Corps have flat out thrived, not just in earnings growth, but also in stock price appreciation, since the beginning of the Bush 2 Administration, which started in January 2001.
The average stock price increase of these 15 Big US Government Contractor Corps is 171% since January 19, 2001.
The magnitude of this 171% average stock price increase is particularly alarming when viewed in light of an S&P 500 Index increase of only 3% over this same time frame.
So, the stockholders and the top executives of these 15 Big US Government Contractor Corps have clearly benefited immensely in the past just short of 12 years. But who did they receive this largesse from? Just who ended up getting their wealth transferred to these 15 Big US Government Contractor Corp beneficiaries?
Well, clearly the US Government, and thus all US taxpayers. The overreaction to 911 resulted in way too much in US Government Contracts, which has substantially and unnecessarily ballooned up the US Debt.
Thus, in all fairness, the Big US Government Contractor Corps should be ponying in a substantial amount of money in the upcoming Grand Bargain Debt debate. Can you imagine asking retirees to have their Medicare benefits reduced or their Social Security benefits reduced, and at the same time letting the Big US Government Contractor Corps get off Scot-free? If this were to happen, I think you would have an incensed US retiree base.
As a first step, there should be no Cost Plus US Government Contracts.
Second, a thorough study of all very significant past US Government Contracts should be reviewed, ascertaining the amount and propriety of the profit earned on them by Big US Government Contractors.
Third, there should be no unreasonable excess profits earned on any future US Government Contracts.
And fourth, many of the wise, prudent, effective measures utilized in the highly successful 2009 Obama ARRA Economic Stimulus Plan should be incorporated in all future US Government Contract negotiations.
Below here are the stock prices of these 15 Big US Government Contractor Corps at, or close to, the beginning of the Bush 2 Administration, and also at the most recent date. Raytheon's 2001 date is as of May 15, 2001, since that is the earliest date that its stock price was in the Big Charts data system. Likewise with Rockwell Collins, whose 2001 date is as of September 17, 2001.
| Stock | Stock | |||
| State | Price | Price | % | |
| HQs | 11-09-12 | 1-19-01 | Increase | |
| Big US Government Contractor Corps | ||||
| Precision Castparts | OR | $171.33 | $16.75 | 923% |
| Harris Corp | FL | $48.65 | $13.13 | 271% |
| Rockwell Collins | IA | $53.58 | $15.50 | 246% |
| Fluor | TX | $52.16 | $16.47 | 217% |
| Lockheed Martin | MD | $89.98 | $31.73 | 184% |
| URS | CA | $35.07 | $15.50 | 126% |
| Alliant Techsystems | MN | $59.93 | $27.14 | 121% |
| L-3 Communications | NY | $74.47 | $34.59 | 115% |
| United Technologies | CT | $75.84 | $35.31 | 115% |
| Raytheon | MA | $56.06 | $29.30 | 91% |
| General Dynamics | VA | $64.45 | $34.19 | 89% |
| Northrop Grumman | VA | $65.60 | $37.73 | 74% |
| Boeing | WA | $73.25 | $55.69 | 32% |
| Textron | RI | $23.86 | $24.31 | -2% |
| CSC | VA | $35.22 | $60.19 | -41% |
| Average Increase: All 15 Big US Government Contractors | 171% | |||
| S&P 500 Index | 1,379.85 | 1,342.55 | 3% | |
