The other thing to keep in mind is that many of the graduate students being trained under this funding and working at places like Fermilab actually end up going into industry and making much more tangible changes in the short term. If funding drops and it has an effect on either the number of PhDs that are be granted or their quality then that will in turn have a real impact on the innovation that we see from companies. I sat in on DOE funding talks a few months ago and this idea came up over and over.

You are right, many Phds do get a job in industry, but that does not mean that this is an efficient process.

"You're letting the terrorists win! You scientists need to just go back to your ivory towers while the rest of us real Americans stand up for freedom!"

Nothing lets the terrorists win more than spending ourselves into a stupor chasing non-existent boogy men.

Of course, when you discover nuclear fission, they then come knocking on your ivory door with apologies and pretty words.