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In the last few weeks we have been so inundated with news about the bickering among the Democratic presidential candidates on the race issue and about former New York Governor Spitzer's "extra curricula activities," that an important move by the Pentagon has been almost overlooked. The U.S. Air Force has signed a $35 billion contract to provide new refueling airplanes, one of the largest military contracts ever. It was awarded to a European group, European Aeronautic Defense and Space Company (EADS), the mother company of the France-based Airbus Company, and Northrop Grumman. The group won the contract over Boeing, who for over 50 years has built airborne refueling planes for the United States. EADS-Airbus is going to develop a large number of this type of airplanes for our Air Force and most of the work will be done in Toulouse, France.
This is of course upsetting news for Boeing and their American workers. Boeing estimates that this contract would have supported "44,000 new and existing jobs and more than 300 suppliers in more than 40 states." One has to question if this contract with EADS is really in the best interest of the United States.
In our current economic situation, when so many manufacturing jobs have been outsourced, we need to keep as many Americans working in good jobs as possible. The Boeing jobs are very good jobs. When the Pentagon is choosing to spend over $35 billion of our tax money, there should be some concern about the consequence of this deal for our current weak economy. We are giving the French workers a "stimulus package" of over $35 billion, money and jobs we certainly could use at home. Several senators and congressmen are trying to challenge the Pentagon's decision. They claim that we can not justify "outsourcing our military capabilities." In addition, they claim that closing such contracts with foreign companies in a time of war is a threat to our national security. According to Senator Maria Cantwell, there are several critical reasons for awarding the contract to Boeing, including better fuel efficiency, many years of experience in building fuel tanker aircraft and the possibility to start building these planes immediately EADS' planes are still in the design stage. They contend that these points should have given the edge to Boeing.
We also should not completely disregard the effect of the dollar's declining value via the strong euro, even if this contract is assessed in dollars. If this deal with EADS is not overturned at least this setback may initiate a much needed debate and perhaps an investigation on the use of foreign contractors for our military's needs.
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