Skip to comments.Study: 9% unemployment if Congress doesn’t stop sequestration
Posted on 07/17/2012 10:15:15 AM PDT by SeekAndFind
The congressional Super Committee is long gone, but the consequences of its failure will be felt by millions of Americans unless Congress addresses mandatory defense cuts that take effect Jan. 2, 2013.
A new study released today by economist Stephen S. Fuller of George Mason University and the Aerospace Industries Association estimates that 2.14 million U.S. jobs will disappear as a result of the Budget Control Acts sequestration mandate. That would push the nations unemployment rate above 9 percent.
Automatic cuts totaling $1.2 trillion will hit the defense industry particularly hard. Defense-related jobs makes up about half of the lost jobs, according to the study. The report estimates losses for other sectors of the economy as well: 48,059 jobs in healthcare, 98,953 in construction, 473,250 in manufacturing. California, Virginia and Texas will fare worst.
Aerospace Industries Association President Marion C. Blakey and Fuller will share details about the study at The Bloggers Briefing at noon ET Tuesday at The Heritage Foundation. Click here to watch it live.
Fuller predicted an uptick in unemployment without action from Congress:
The unemployment rate will climb above 9 percent, pushing the economy toward recession and reducing projected growth in 2013 by two-thirds. An already weak economy will be undercut as the paychecks of thousands of workers across the economy will be affected from teachers, nurses, construction workers to key federal employees such as border patrol and FBI agents, food inspectors and others.
The first year of cuts will result in a $215 billion drop in Americas GDP. The overall U.S. workforce also faces a $109.4 billion decrease personal earnings.
Cuts to Americas military are particularly alarming. The across-the-board cut of more than $500 billion over the next decade comes in addition to the $487 billion in cuts already proposed by President Obama for the Department of Defense. The Budget Control Act hits the military hardest.
At the release of todays study, New Hampshires two senators — Republican Kelly Ayotte and Democrat Jeanne Shaheen — warned of the consequences of inaction. Ayotte emphasized the impact on Americas military in particular:
Military leaders have been clear that defense sequestration will deprive our troops of the resources they need and undermine our national security for generations. This new study underscores that sequestration will also crush our economy, devastate our defense industrial base, and put tens of thousands of Americans out of work.
Defense readiness is already a mounting concern. All branches of the military are attempting to do more with less, relying on SUVs for combat, extending the life of aircraft and cutting back on our Navy fleet.
Seems like just yesterday when Obama, Reid, MConnell, Boehner(who said it was 95% of what he wanted), Pelsoi, Ryan.... had a bipartision love in and called this a great acheivement. Now both sides are pointing fingers at the other for the result of this bill finally going into effect, after the election.
Excuse me if I don't join in on the side taking on this one.
Boehner broke his 2010 promise that as House speaker all bills would be made public 72 hours before a vote with an open amendment process. This bill was crafted behind the same closed doors used to block view of the Obama-care bills creation.
Steve Fuller is NOT an economist. He is a public policy professor who claims he is an economist.
And he sells his opinion to trade groups. A true whore.
It’s interesting to note that the “cuts” will impact working people who pay taxes.
While the welfare state continues to increase the seats on it’s free ride.
Thanks RINOs for that deal you cut with the libs.
File under trash.......
But the Trayvons will riot.
Let them ... they generally riot in their own neighbourhoods ... When they're done, they can squat in ashes and squalor of their own making. If they try to export their riots, thievery, arson, rape, murder, and mayhem to other neighbourhoods ...
Rioters should be shot on sight.
Survivors should be hanged.
Which cuts are you thinking of? The defense cuts?
The automatic tax increases are separate and were passed by the last congress extension.
I know that.
My point is the “deal” the RINOs made with the libs is turning out to be hard cuts in the military while nothing in the welfare areas.
You have to have a job to pay taxes - so the military cuts will hike up unemployment being a bigger drain on our economy.
The cuts are over 10 years. Anyone crying about automatic sequestration cuts is full of it.
We need to stop spending.Screw the RINOs.
Trimming $70 or 100 billion a year in spending wont turn the tide on debt aggregation; we need fundamental, structural reform of spending that reduces to zero the amount of money we have to borrow on an annual basis to pay our bills.
Weve been here before. Many times.
Taxes will go up. Real spending wont be cut by a penny. All the cuts will be illusory; cuts in future rates of growth, labeled budget cuts.
The economy will keep one foot in the grave; maybe go ahead and flop all the way into the casket. Stagflation will worsen, and the media will kvetch about how the Presidency has gotten too big for just one man.
How about asking the 63 million that dont pay $.01 of fed tax to pony up??(in ADDITION to sequestration cuts)