Raytheon and General Dynamics - 2 large corporations who develop weapons.?

Question

Are weapons and the private defense industry similar to critical utilities such as power companies where their profits are regulated? The primary and perhaps only consumers are the US government and perhaps other governments. ---What role should government have in subsidizing research for these businesses?

Answer 1

No, the profits are not regulated. Weapons research is the same as any other government contract. Usually, the Department of Defense develops specifications for a weapon they want and send these specs to different defense industry companies as a Request For Bid. The companies will typically lay out money to determine if such a device (whatever it may be) is feasible. Then they estimate how much it will cost to research the device and offer a bid based on that cost. (There are certain contract where the Government will set a ceiling on how much they are willing to spend on the research.)

So....it isn't really a subsidy.

Answer 2

This is part of Corporate America and the war machine. As long as we focus our attention on war and the implements of war then war will follow us.

Answer 3

they should be subsidized, they maintain the edge of American military power.