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Industry downsizing became a major part of the corporate world in the 1990s. Given current economic conditions, government agencies are now downsizing. There is some

Industry downsizing became a major part of the corporate world in the 1990s. Given current economic conditions, government agencies are now downsizing. There is some concern that excessive cuts in some government programs, especially defense spending, will have an important effect on the country's ability to respond to military crises. GovEx.com, which maintains a management concepts website, puts out a weekly email newsletter. The website also includes an article (accessible at http://www.govexec.com/reinvent/downsize/0795mgmt.htm) entitled Industry's Downsizing Lessons, dated July 1, 1997, from Government Executive Magazine, that emphasizes the effects of the reduction in operating leverage (reduction in fixed costs). Read the article and answer the following questions: Does the group think that cuts in defense department spending are "riskier" than cuts in the private sector? Why

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