Sequester: The military girds for a blow
Washington's latest game of financial chicken threatens to trigger huge cuts for the Pentagon. Here are the top 10 states on the hit list.
Are you ready for the sequester? This latest post-fiscal cliff, political game of chicken over the federal budget could go into effect on March 1, unless some sort of congressional compromise is reached.
As Caitlin Dickson at the Daily Beast puts it, the sequester "is the trade-off for the tax hikes the cliff deal avoided: a collection of across-the-board budget cuts adding up to about $1.2 trillion dollars over 10 years. It’s a manufactured political crisis, basically, and everyone shares some blame for it."
If the sequester happens -- and that's still a pretty large "if" -- about half of those cuts will come from the U.S. military. The Pentagon could find its budget slashed by $500 billion, which would not only have direct and a relatively immediate impact on the war in Afghanistan but also on defense industry contractors and, of course, jobs directly and indirectly linked to the Department of Defense.
"Cuts to spending for the acquisition of military equipment alone would lead the loss of over 1,000,000 private sector jobs," warns the U.S. House Armed Services Committee website. "These cuts could push unemployment back up to 9%."
The website adds that more than 350,000 of the Pentagon's active-duty military and civilian personnel could also find themselves out of work.
The U.S. Army recently released a document forecasting how cuts to its branch alone would affect more than 302,000 jobs across the nation -- with an economic impact of $15.35 billion.
The Washington Business Journal went through the Army's data and tallied up what each state potentially stands to lose in terms of economic impact and job cuts. Here's the top 10 list:
Alabama -- Economic loss: $1.9 billion, jobs affected: 25,177.
Arizona -- Economic loss: $262 million, jobs affected: 5,063.
California -- Economic loss: $615 million, jobs affected: 11,432.
Georgia -- Economic loss: $931 million, jobs affected: 17,163.
Hawaii -- Economic loss: $287 million, jobs affected: 8,499.
Kentucky -- Economic loss: $606 million, jobs affected: 15,016.
Maryland -- Economic loss: $527 million, jobs affected: 23,243.
Texas -- Economic loss: $2.4 billion, jobs affected: 34,734.
Virginia -- Economic loss: $1 billion, jobs affected: 25,360.
Washington -- Economic loss: $461 million, jobs affected: 11,047.
The Army says it's preparing for any near-future budget reductions by cutting its contracted workforce, using attrition to lower the number of temporary and short-term employees, implementing a hiring freeze, "diverting" funds for facility restoration and modernization, and by reducing base operation support levels.
I agree with cutting the defense budget, there are way to do it that does not affect the US employment picture. This would be to curtail our troop presence outside the US, including the middle east. Both parties have given in when it comes to the "holy cow". Yes I am a veteran, I enlisted and served in Viet Nam. When you send the military in it is to WIN, not be a police action or to stay for 10 years.
Before there are big cuts to the military, the White House must first set the example in cutting cost within their area, to include benefits. The American people see a very none productive elected group in Washington DC, that are wasting funds and at the expense of the American citizens. Too many want to be chiefs and no leader to be a real chief to lead. I see a pack of wild dogs fighting among their selves and do not know what they are fighting about. No goals and no guide lines to follow. Go figure!
We need to trim the fat from ALL goverment projects. funding for studies that are not health related. there are 11 to 20 million illegal immigrants living in the US. Jobs are getting out sourced to other countries. 250,000 soldiers are getting chaptered out of the Army, Where are they going to work? Buisnesses are cutting hours so they don't have to pay for health care. Banks getting bailouts from the goverment. Unemployement at an all time high...
WHO IS GOING TO PAY FOR ALL THIS?????
What the heck! Congress has been weel aware of the sequesteration since 2011 and has done nothing but wrangle over partisan politics. Then a week before the hammer falls - they take off. I thought that our representatives first job was to take care of business and represent all of us- Democrats and Repubilcans. It is clear that their first loyalty is to their respective parties. There is going to be a lot of fallout - loss of jobs is number one, and it will spiral downward from there. Those of us that are saving for retirement are going to get wacked as well as those that are retired. Our education and transportation systems in jepeopardy. What the heck we are all going to get burned except our
elected representatives who will line their pockets and get the kind of benefits we all dream about, and when a crises arises they'll just go on vacation.
There s enough waste in the military to easily avoid readiness, training and fighting capacity reductions.. Unneeded bases, unwanted weapons, unused office space, let attrition reduce civilian employment, take the money from foreign despots and radicals.
The sleazy attempt to scare everyone for political gain is a disgrace. And for Gods sakes, quit referring to CUTS. Theyre arent any, omly slowing the rate of increase.
Anything that has to be reduced, jobs or services, is proff they werent necessary. Education programs also. Efucation has become so bloated with administrators instead of teachers, its a disgrace..
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Precious metals are trading lower this morning. Dec gold brushed a session low of $1212.50 in recent action and is now down 0.2% at $1214.60. Dec silver traded as low as $12.57 but has been inching higher in recent trade. It is currently at $17.71, or 0.8% lower.
Nov crude oil pulled back from its session high of $91.82 set at pit trade open and is slipping deeper into negative territory. It touched a LoD of $90.77 and is currently down 0.9% at $90.86.
Oct natural ... More
More Market News
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'