Trump Attack On Syria a Transfer Of Wealth From Taxpayers To Defense Contractors
For the Military Industrial Complex, the Trump’s presidency is like a gift from Vladimir Putin, who orchestrated a cyber attack on the 2016 U.S. elections to tilt the race in Trump’s favor.
Trump has been president for less than three months, but his erratic actions already have military contractors laughing all the way to the bank. Anticipating another senseless war, defense stocks have been on the rise since Trump took office.
It took Trump just a couple of hours to waste over $70 million dollars of taxpayer dollars as Raytheon, the contractor that manufactures the Tomahawk line of cruise missiles, is enjoying a good day on Wall Street after Trump’s attack on Syria.
CNN Money reported that –as of 12:22 PM Eastern Time– the missile manufacturer’s stock was already up 2.5 percent compared to the day before, prior to the missile strike. If current trends continue, Raytheon’s stock may close above its previous 5-year high of March 17, when its share price was at $156.97.
Stock prices for other defense contractors were also rallying on Friday, just one day after President Trump announced the missile strike against a Syrian airbase in Homs province, according to the report. Trump said the attack was in response to Syrian President Bashar al-Assad’s chemical weapons attack that killed roughly 70 Syrians.
Lockheed Martin and Northrop Grumman’s stocks are both on the rise, and may also close at near all-time highs before the weekend begins.
Since late January, stocks for major military contractors have been steadily rising, given President Trump’s promises to boost military spending and hawkish rhetoric regarding ISIS and Syria. Between January 26 and March 17, 2017, Raytheon’s stock jumped approximately $14 in share price. Lockheed Martin’s share price jumped by almost $20 between early February and April.
Should Trump continue to escalate his bombastic rhetoric and actions in regard to the Assad regime, it’s likely that defense stocks will remain high throughout his presidency.