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AIA Warns of Devastating Impact of Slashing Pentagon Spending

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  • October 25, 2011
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Cutting defense spending by $1 trillion over the next decade — the outcome if automatic budget cuts are triggered — would result in the loss of more than 1 million jobs nationwide, according to an analysis released by the Aerospace Industries Association (AIA).

In 2013, the projected annual growth in GDP would drop 25 percent, from estimated growth of 2.3 percent to 1.7 percent, according to the analysis performed by Stephen Fuller, director of the Center for Regional Analysis at George Mason University.

“Our analysis reveals bleak outcomes for both the defense industry and the economy as a whole if the budget sequestration trigger is pulled and $1 trillion is cut from defense,” Fuller said.

The analysis projected job losses for states with the largest base of aerospace and defense workers based on a worst case scenario in which Congress fails to enact at least $1.2 trillion in government-wide spending cuts before the end of the year, triggering cuts of an equal amount, split equally between defense and non-defense programs. DOD’s budget already is slated to decline by about $450 billion over the next 10 years as a result of August’s deal to raise the debt limit. Top job losses by state:

  • California — 125,800
  • Virginia — 122,800
  • Texas — 91,600
  • Florida — 39,200
  • Massachusetts — 38,200
  • Maryland — 36,200
  • Pennsylvania — 36,200
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