Will Politicians Destroy the Recovery with This Policy?
However, to paraphrase George Orwell, some programs and agencies are more equal than others. Certain crucial defense programs related to the current wars are exempted from these automatic cuts, as are some domestic programs like Social Security and Medicaid.
Still, the Pentagon will shoulder most of the burden with spending cuts of over 7 percent, while domestic programs will face cuts of around 5 percent. In either case, these indiscriminate austerity cuts could have a negative impact on government services and overall economic growth.
Here’s a look at how some top defense stocks have performed over the past 52-weeks in the face of sequestration:
Lockheed Martin (NYSE:LMT)