The Fiscal Times
June 22, 2012
With no guarantees that Congress will block deep new defense spending cuts scheduled to kick in early next year, major defense contractors and their suppliers are bracing for the worst.
The Bipartisan Policy Center warned in a recent report that the deep savings would greatly add to the country’s economic woes by slowing growth and wiping out more than a million jobs – without putting a dent in the federal debt.
Moreover, the study cautioned that all of the uncertainty about how the sequester will impact the defense industry will have “a paralytic effect.” Unsure of how much in funds they will have available in the coming years, the report said, “program managers at the Pentagon are already delaying signing contracts and slowing the procurement process.”
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Economic Policy Project, Foreign Policy Project