DOD worries about sequestration affect on non-defense industries

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.

5 Comments on “DOD worries about sequestration affect on non-defense industries

  1. “House Budget Committee Ranking Member Chris Van Hollen said when it comes to the fiscal cliff, he’s “increasingly concerned” that Speaker John Boehner is putting his personal political health ahead of the nation’s.”

    I’m sorry but Van Hollen is just another two bit Democrat who is blindly supporting Obama in his quest to bankrupt the US. Obama, Van Hollen, and the rest of the democrats only talk about tax increases, and no mention of cutting entitlement programs, which is one of the main root causes of the economic situation the US finds itself in today. Another problem with all of this is all the “talk” about trying to avoid falling off the “fisical cliff” is only being done in the House, not in the White House or the Senate. My guess is whatever deal the House manages to make, or vote on by itself, will never see a floor vote in the US Senate. Harry Reid cannot afford to allow the Senate to vote on anything that begins in the House (even though the US Constitution requires all budget bills to begin in the House of Representitives).

    The “sequestration” was a made pre-deal as the so called “super committee” was set up to fail back in 2011. The defense budget was raped, just at a time when the world is looking more dangerous, and this weeks launch of a North Korean “rocket” (ICBM) proves it. The North Koreans were going to get it right eventually, and everyone in the Congress and White House knew it.

    But Obama is okay with putting thousands of more Americans out of work beginning next month. He is not serious about that, and him going on his 3 week vacation to Hawaii next week proves he is not concerned. He also tried to convince defense contractors not to begin handing out pink slips before the election. Obama has also recently demanded Congress hand over the power to raise the national debt (credit card) to him with no questions asked.

    Unemployment will raise, and the President will then demand extending unemployment benefits for these newly unemployed defense workers, spending more money we have to borrow.

  2. We will never get the level of spending cuts this nation’s economy needs by negotiating with the Democrats.
    Anyone who believes Obama’s crass promise to “raise taxes now, negotiate spending cuts later” is indeed a fool.
    I see the “fiscal cliff’ as a rare opportunity to do the right thing, and driving Obama and his liberal minions over that cliff is exactly what should be done.
    Then control of the process of judicious restoration of funding passes to the Republican House.
    Restoration of funds cannot occur without Republican support, which should come at a high price – like major overhaul of the tax code, lowering of personal and corporate tax rates permanently, for example.

  3. Recently I saw comments here US government Defense spending is in no way supporting the Civil Aerospace Business. It was during the WTO discussions.

  4. I see sequestration affecting my business, NAVFAC, the Naval Facilties Command will be only proceeding with previously approved MILCON projects with specific funding and urgent need project. Similarly, NAVSEA and NAVAIR will first be cutting contracts for support, new trainers, trainer updates, supplies, etc. Only after those are bare boned would there be furloughs of civil service employees.

    For diversity of work, firms such as L-M branched out to other agencies, but those same contracts there are low hanging fruit that are likely to be cut.

    Although I lean right, I find it just incredible that there has not been a budget passed by the Senate in over 3 years. How can we set up priorities if we do not have a budget. Right now over 40% of the US spending is borrowed, there used to be screaming as unsustainable when that number was 8%. Although not prudent, I can see an OK ending overspending 8% a year, but 40% is crazy. It is like mortgaging your house for a wild beach vacation.

    • Somehow I don’t think the Founding Fathers envisioned this kind of legislative gridlock when they came up with the concept of executive and dual legislative branches … but given that the US politics is becoming ever more polarized (see TopBoom and Fred Bearden above for two examples, plenty more exist on both sides), the center has ceased to exist in US politics. The primary systems and rampant gerrymandering both encourage more extreme candidates, too.

      I really can’t see any real improvement in this regard in the near to medium term, either.

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