The National Journal magazine has an interesting article detailing why the Defense Department is worried about the impact on non-defense sectors. Among the key points in the article:
- Half Boeing’s revenue comes from the commercial aircraft sector and adverse impacts on airlines could ripple to Boeing Commercial Airplanes;
- Air Traffic Control will take an immediate $800m hit, costing 2,200 controllers their jobs;
- The FAA’s NextGen system investments would be slashed;
- Lockheed Martin provides security services to departments like Social Security, and would be affect; and so on.
Here’s an article specifically on the FAA controller cuts.
There are charges and counter-charges among DC politicians about why no deal has been struck yet to avoid the fiscal cliff. The latest is that House Speak John Boehner wants to get past his reelection as Speaker Jan. 3. This is a pretty cynical theory.