An economic impact analysis commissioned by the Aerospace Industries Association (AIA) predicts that more than one million jobs will be lost in the aerospace and defense industry, if the U.S. Congress fails to reach an agreement that would prevent automatic government spending cuts.
The analysis by George Mason University professor Stephen Fuller and Economic Modeling Specialists is based on a scenario in which $1 trillion is cut from government defense spending over the next 10 years–some $465 billion in already planned reductions and $500 billion more through “sequestration,” or the automatic cuts required under debt-limit legislation Congress passed in August. Automatic cuts will be prevented, if the bipartisan Joint Select Committee on Deficit Reduction agrees on reducing the overall government deficit by $1.5 trillion by November 23. The committee reportedly is making poor progress toward reaching consensus.
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