There’s no question the automatic budget cuts set to take place next January will have major national security implications, but what about the economic fallout? Sequestration doesn’t just mean a reduction in military readiness, it also means reductions in defense and non-defense jobs. According to a new study by the Aerospace Industries Association, the unemployment rate would reach 9 percent or higher under these cuts (h/t Rob Bluey):
“The results are bleak but clear-cut,” said [Dr. Stephen S.] Fuller. “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 analysis concludes that the automatic spending cuts mandated in the Budget Control Act of 2011 affecting defense and non-defense discretionary spending in just the first year of implementation will reduce the nation’s GDP by $215 billion; decrease personal earnings of the workforce by $109.4 billion and cost the U.S. economy 2.14 million jobs.
This is about more than national security. A sudden reduction in defense-sector jobs could devastate whole communities, flooding the already-oversaturated job market with masses of newly unemployed. These aren’t unnecessary or obsolete jobs, they’re ones that are still critical for national defense.