TRANSITION: Defense spending helped the San Fernando Valley flourish during the Cold War, but peace has its price (above). Reduced levels of military spending have slashed defense spending for prime contracts in the Valley area by 16% since 1989--a loss of tens of millions of dollars and tens of thousands of jobs (A1). . . . The sought-after savior: conversion to high-tech peacetime projects, like electric cars.
The Valley's share of U.S. defense contracts has shrunk. (1989 dollars in thousands) 1989: $969,437 1992: $818,357 Source: U.S. Department of Defense