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Why throw good money away? "subsidizing their commercial operations, why would they not simply shut the commercial side down and keep more of that sweet, sweet
by _Codemonkeyism 9y ago
Why throw good money away?
"subsidizing their commercial operations, why would they not simply shut the commercial side down and keep more of that sweet, sweet, defense money as pure profit?"
They are not subsidizing commercial operations with money, commercial operations is not operating on a loss long term. One small example, having billions of defense income makes your debt much cheaper. If they even need debt. From working in an enterprise company it's common to move money around on a zero interest rate basis. One part needs a billion $ to develop something or for marketing? Done. Some years later it gives that money "back". Zero interest. It was amazing.
- alexasmyths 9y agoGetting cheaper debt means subsidization of one line of business from another. Also - government spending is often more predictable and long term and provides a solid operating basis upon which to do other things. And of course is the R&D and know-how overlap, in addition to all of the other things.
- _Codemonkeyism 9y agoI'm not getting your argument "They are not subsidizing commercial operations with money" "Getting cheaper debt means subsidization of one line of business from another."