The evidence builds about the catastrophic costs of sequestration–the automatic budget cuts, amounting to half a trillion dollars during the next decade, that will devastate the defense budget starting on Jan. 1 or actually even earlier because companies will have to start laying off workers in preparation.
The Bipartisan Policy Center in Washington has issued a new report under the authorship of former National Security Advisor General James Jones, former Chairman of the Senate Budget Committee Pete Domenici, and former Secretary of Agriculture Dan Glickman that finds that, if sequestration were to occur, the economy would lose more than a million jobs in 2013 and 2014. Glickman rightly described this as as a “reverse stimulus plan” and Domenici–known for being a fiscal, not a national security, hawk–called it a “fiasco.”
Yet Harry Reid and John Boehner, the two leaders of Congress, seem to be engaged in a game of budget chicken, which makes it increasingly unlikely that the sequester will be turned off before the end of the year. The former wants tax increases; the latter doesn’t–and the two seem to be ignoring the damage their standoff is doing to the men and women in uniform. I talked to one Hill staffer last week who thought there was a 90 percent chance the sequestration would go into effect on Jan. 1; the best hope of stopping it, he argued, would be early in 2013 if President Romney is in office by then.
Whatever the prospects of turning off the sequester in a Romney administration, the reality is that if Congress doesn’t act soon, its harmful effects will be felt not only in the Department of Defense but in companies across the country that are defense contractors or sub-contractors.