Obama and his Sequestration will destroy jobs and businesses in the USA in 2013

The USA Defense Breakdown Economic Impact Report

Our troops are carrying an unfair burden of deficit cuts. To date our Defense budget has absorbed over 50% of deficit reduction – yet it accounts for less than 20% of federal spending.

Our military’s burden will be worse under the Sequestration Budget Cuts – unless Congress takes action this year. A 2011 law requires the Defense budget be cut by another $500 billion over the next 10 years – about 18% a year.

The USA will lose jobs and businesses under Sequestration Defense cuts.

Sequestration will destroy jobs and businesses in the USA in 2013. This report shows how “National Average” defense budget reductions of at least 9% and the additional Sequestration cuts of up to 18% could affect the USA, using actual 2010 and 2011 USA data. USA counties, cities and industries will be hit by these cuts.

Jobs gone. Businesses broke. America’s military defenses devastated.

If left in place, Sequestration will cut our military to its smallest size since before World War II – while we face growing threats from Iran and North Korea, a rising China, regional threats in the Middle East, and an ongoing war in Afghanistan.

 9%: In 2012, President Obama limited U.S. military capability to fighting one “regional conflict” and one “holding action.” Defense budgets for 2013-2021 were cut $487 billion – a 9% cut, at a minimum.

 18%: “Sequestration,” required by law in 2011, mandates $500 billion more in 2013-2021 defense cuts – an 18% cut, at a minimum. President Obama said he will veto any changes Congress makes.

Secretary of Defense Leon Panetta: “If the maximum sequestration is triggered, the total cut will rise to about $1 trillion compared with the FY 2012 plan…The impacts of these cuts would be devastating… Rough estimates suggest that after ten years of these cuts, we would have the smallest ground force since 1940, the smallest number of ships since 1915, and the smallest Air Force in its history.” 11/14/2011

USA job losses under Sequestration could be permanent.

USA businesses will not escape the 9% and 18% cuts.

USA defense prime contractors earned over $349.4 billion in 2011 protecting America, but now they may face 18% revenue cuts under Sequestration - starting in 2013.

USA defense contractor revenue losses could range from $50 billion to over $62.9 billion – each year.

USA defense contractors may have to lay off workers or even shut down under Sequestration cuts.

Gone. Many USA public sector jobs will be eliminated under Sequestration.

Congressional experts estimate USA could lose DOD military active-duty and DOD civilian jobs:

Under Sequestration, 181,411 military active-duty employees could lose their jobs.

 Under Sequestration, 177,316 civilian DOD employees could lose their jobs.

 Gone. USA private sector jobs will be cut, as well as state earnings.

A 2011 nationwide economic impact study from the Center for Regional Analysis at George Mason University predicts that the USA could lose tens of thousands of private sector jobs and billions of dollars under the Sequestration law:

 The USA could lose 1,006,315 jobs.

 The USA’s economy could lose $59.4 billion in lost earnings. The USA could see a $86.4 billion decrease in Gross State Product (GSP).

The Bottom Line: Projected Job Loss for USA is at least 1,365,042 jobs.

America’s defenses under Sequestration – “a hollow force.”

General Martin Dempsey, Chairman, Joint Chiefs of Staff: “Sequestration leaves me three places to go to find the additional money: operations, maintenance and training. That’s the definition of a hollow force.” 2/14/2012

“Catastrophic.”

General Ray Odierno, Chief of Staff, United States Army: “Cuts of this magnitude would be catastrophic to the military…my assessment is that the nation would incur an unacceptable level of strategic and operational risk.” 9/22/2011

Go to www.forthecommondefense.org/reports to view detailed reports on USA counties, cities, Congressional Districts, industries, and small businesses, and information on data sources and methodology. Additional data sources available at www.governmentcontractswon.com compiled from public data at https://www.fpds.gov.

USA defense business revenue losses from Sequestration budget cuts could be permanent.

These USA States could lose the most revenues:

USA Top 5 States Projected Contract Revenue Reductions Based On National Average State Name	2011 Revenue (Baseline)	2013-2021 Annual Revenue Reduced By At Least 9%	Under Sequestration: 2013-2021 Annual Revenue Reduced By At Least 18%
Virginia	$54,849,018,513	($4,936,411,862)	($9,872,823,725)
California	$43,705,764,973	($3,933,519,004)	($7,867,038,008)
Texas	$35,972,634,435	($3,237,537,228)	($6,475,074,456)
Maryland	$15,923,228,001	($1,433,090,577)	($2,866,181,154)
Florida	$13,338,344,799	($1,200,451,080)	($2,400,902,159)

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