WP: Ukraine aid funds fuel job growth in American defense sector

US military aid to Ukraine is bringing unexpected economic benefits to multiple states across America. While the federal government has allocated nearly $175 billion in assistance for Ukraine since Russia’s full-scale invasion began, a significant part of this funding remains in the US, powering defense production facilities across the country, according to a report by the Washington Post.

The debate over continued aid to Ukraine remains contentious in Washington, with some conservative opposition mounting. However, supporters, including US President Joe Biden and Senate Republican leader Mitch McConnell, argue that the spending is in both the security and economic interests of the United States.

The Washington Post wrote:

“Much of that money remains in the United States: It powers plants like the Army’s factory in Scranton, which makes 155-millimeter artillery rounds, and others in Alabama, which make armored personnel carriers, and Texas, where mobile artillery rocket systems are built.“

In Scranton, Pennsylvania, the impact is particularly noticeable. General Dynamics, the contractor running the 116-year-old Scranton Army Ammunition Plant, has added more than 200 jobs in the region since 2022. Artillery production at the facility has more than doubled, with the General Dynamics facilities in the area now producing over a third of the 155mm rounds the United States aims to send to Ukraine each month.

Other defense contractors in the Scranton region have also seen growth. Gentex, located in nearby Carbondale, Pa., increased its staffing by 10% over the past year. German glass firm Schott, which produces high-tech optical products for civilian and military uses in Duryea, Pa., has added dozens of jobs over the past five years.

The economic boost from defense manufacturing is helping to reverse long-term industrial decline in some areas. Satyajit Ghosh, a professor at the University of Scranton who studies the regional economy, told the Washington Post,

“This is not a fluke. If you use unemployment rate as the marker, this would be the best I have seen, or that anyone has seen.”

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