Study projects automatic cuts could cost US 1 million jobs

The Hill ^ | - 06/07/12 10:41 AM ET | Erik Wasson

[Ernest_at_the_Beach]

Automatic across-the-board cuts to the budget set for Jan. 2 will cost the United States 1 million jobs, according to a new study released Thursday by the Bipartisan Policy Center (BPC).

The job-loss projection comes from cuts to defense and non-defense spending.

The BPC predicts gross domestic product will decline by 0.5 percent if the full $109 billion defense and non-defense sequester goes through.

The base defense and intelligence budget will be cut by $55 billion or 15 percent on Jan. 2, when politically sensitive war funding is stripped from the equation, the group said. It warned of a massive disruption in the defense supply chain that could spark massive contract litigation.

"This is a reverse stimulus plan. That's what we are talking about here," BPC task force member and former Agriculture Secretary Dan Glickman said.

BPC task force member Maj. Gen. Arnold Punaro told reporters that the effects of the sequester are already being felt as defense contractors reduce inventory.

Punaro said that major public companies, in their second-quarter earnings forecasts, out in July, will have to lower expectation based on the sequester.

"This is not rational at all," he said.

[Uncle Chip]

Automatic across-the-board cuts to the budget set for Jan. 2 will cost the United States 1 million jobs, according to a new study released Thursday by the Bipartisan Policy Center (BPC).

If it does, then the loss of 1 million jobs in the public sector will then create 2 million jobs in the private sector.

[from occupied ga]

"This is a reverse stimulus plan. That's what we are talking about here," BPC task force member and former Agriculture Secretary Dan Glickman said.

Considering that the "stimulus" plan provided unemployment an increased debt, then a reverse is exactly what's needed

[BfloGuy]

This is a foolish argument. If the Defense budget is cut, then it is the impact on national defense that matters -- not the number of people employed. Jobs created by government spending are still a drain on the private economy stunting its growth -- even if you do approve of the product.

[JoanVarga]

There’s key jobs, engineering and design and upgrades that will be affected by this. Troops, too. Just ask your neighbors who work in defense dept adjuncts.

Never assume that our DoD elites are on our side. They’re lining up to be the leaders of the Civilian National Security Force when the SHTF. And it will.

This is not a good scenario. And if you think “sequestration” will not revert back to its original meaning of seizure of property, you haven’t been paying attention to Chairman Barry’s land grabs. “Imminent Domain” on the fast-track. There’s already plans in place to replace your 401k dollars with T-Bonds.

/tinfoil hat (but, still . . .)