Automatic cuts in
federal spending will cost the economy more than 2 million jobs, from
defense contracting to border security to education, if Congress fails to resolve the looming budget crisis, according to an analysis released Tuesday.
[Related: Five jobs with the most layoffs]
The study, obtained by The
Associated Press, was conducted for the Aerospace Industries
Association, but it examined the shared pain for defense and domestic
programs from the across-the-board reductions slated to kick in Jan. 2.
The cuts would reduce the nation's gross domestic product by $215
billion next year while consumer confidence would plummet, said the
report by Dr. Stephen Fuller of George Mason University and Chmura
Economics and Analytics.
"If they are allowed to occur as
currently scheduled, the long-term consequences will permanently alter
the course of the U.S. economy's performance, changing its competitive
position in the global economy," said the report.
The analysis is similar to other
cautionary reports that have emerged in recent months from independent
organizations that analyze federal spending and the process known in
Washington as sequestration. All the reports carry a degree of
uncertainty as the government hasn't spelled out where it would make the
cuts.
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