Center releases reports on potential economic impacts of proposed defense cuts

The Center for Security Policy is very proud to provide as a member of the Coalition for the Common Defense a tool for American taxpayers and communities – and their elected representatives – to anticipate not only the national security impacts, but the economic ones, arising from impending reductions in U.S. defense spending.

Our goal is to encourage and empower a more informed discussion about the economic impacts, as well as the national security impacts, of the impending defense cuts. We want to help bring this discussion to the local employers, citizens and community and business leaders who will need to prepare for possible job losses and business failures.

To accomplish this, we have provided summary reports – two pages each – for all fifty states and the District of Columbia, and additional detailed reports for all states and territories. All reports can be viewed at www.forthecommondefense.org/reports.

Center for Security Policy Releases Reports on Potential Economic Impacts of Proposed Defense Cuts

Washington, DC February 1, 2012 – The Center for Security Policy today released their “Defense Breakdown Economic Impact Reports,” a collection of 2,750 online detailed reports and 51 Summary Reports presenting a “National Average” estimated economic impact from projected defense cuts, for cities, counties, states and territories.

The Center launched the reports in advance of the February 13, 2012 release of the Obama administration’s 2013 defense budget. The purpose of the “Defense Breakdown Economic Impact Reports” is to help citizens, local businesses and their employees, and local governments prepare for the economic impact of these probable defense cuts under the Budget Control Act of 2011 and the sequestration mechanism.

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. “Sequestration,” required by law with passage of the Budget Control Act in 2011, mandates $500 billion more in 2013-2021 defense cuts – an 18% cut, at a minimum. President Obama has stated he will veto any attempt by Congress to reverse these cuts.

These reports shows how “National Average” defense budget reductions of at least 9% and 18% could affect cities, counties, states, congressional districts and categories of business owners (ethnic, women-owned, veteran-owned etc), using actual 2010 data for revenues received by local defense contractors. The Defense Breakdown Reports are meant to be used as a benchmark for communities to gauge the actual local economic impact of the Obama administration’s proposed defense cuts on businesses and jobs.

The summaries and online reports are available at: www.forthecommondefense.org/reports.

The Center’s “Defense Breakdown Economic Impact Reports” are part of a broader 2012 initiative, the Coalition for the Common Defense, to educate and engage the American public on the importance of maintaining a strong national defense.

Frank Gaffney, President of the Center for Security Policy remarked:

“The Center for Security Policy is very proud to provide as a member of the Coalition for the Common Defense a tool for American taxpayers and communities – and their elected representatives – to anticipate not only the national security impacts, but the economic ones, arising from impending reductions in U.S. defense spending.”

“In so doing, we are mindful that such spending is invested to secure the United States, its people and vital interests, and not as an employment measure. That said, the reality is that there will be real and, as this product illustrates, in some cases draconian impacts on both jobs in and the economies of states, counties and cities across the country and on the viability of various businesses, as a result of the direct and indirect effects of such cuts.”

“It is our hope that by bringing this information to the local employers, citizens and community and business leaders who will bear the brunt of this tsunami, they will be better able to prepare for it – and, ideally, to help stave it off.”