When that market recedes the company is toast. Only bankruptcy allows the company to go back to civilian reality, because the corporate structure is geared to a process that spends $500 to qualify, approve and document a $2 bolt (which was made to government standards at 5X market price in the first place.)
Thew recent crash of a Grumman amphibian due to spar failure was an example of this. No airline operator operates a 58-year old airframe that has been in continuous use in a marine environment.....unless there are no new ones. The Long Island plants that built these things are sitting idle, the trained workforce is unemployed, underemployed, retired early or moved elsewhere. The design of these things is paid for, has been for fifty years. New Grumman amphibian airframes could be built for very little in labor and materials. Some of the tooling still exists, none of it was terribly expensive to build (except for accounting purposes) and much could now be done on NC soft tooling anyway. In fact a very much cheaper option would be to just build new wings and horizontal stabilizers which (along with the gear forgings) are all that has much of a fatigue concern. The hulls are way, way overbuilt. I guarantee anyone at Northrop Grumman who suggested this would be laughed out of the boardroom. Their corporate structure is geared to selling a widget that costs $2,000,000 to build for $76,400,300 and making it look plausible on paper. (Yes, it cost $500,000,000 to develop....but the taxpayer already paid them in full and more for that!)
I really believe now the only thing that can save America as we know it is a monumental, sudden, and near-total implosion of Wall Street. Most of the market cap in tech stocks and much in defense must vanish, and suddenly. I don't make light of the impact: many innocent people will suffer greatly. But the alternative is even worse. I'd rather see a few dozen families mourn their stockbroker and investment banker fathers that bounced off the Manhattan sidewalks and some 50-year-old retirees depensioned while they can still re-earn a small sum to live their lives out than...the current trends, where most of them will lose it anyway and a few people will become multibillionaires and the average standard of living in America plunge further and further.