AIA sounds alarm on economic downturn report.
Press Release Summary:
February 1, 2013 - According to Marion C. Blakey, President and CEO of AIA, contraction of the U.S. economy in the fourth quarter underscores AIA's warning for the past 18 months that severe across the board budget cuts—both to defense and non-defense discretionary spending—threaten to throw the economy into a tailspin. In less than 30 days, unless Congress and the White House act, sequestration will kick in, leading to higher unemployment, reduced tax revenue, and lower consumer spending.
Original Press Release
AIA Sounds the Alarm on Economic Downturn Report
Press release date: January 30, 2013
Statement by Marion C. Blakey, President and CEO of the Aerospace Industries Association on reports of the contraction of the U.S. economy in the 4th quarter of 2012.
Arlington, Va. – The contraction of the U.S. economy in the fourth quarter underscores AIA’s warning for the past 18 months that severe across the board budget cuts—both to defense and non-defense discretionary spending—threaten to throw the economy into a tailspin. It is clear from the Commerce Department report that reduced government spending, primarily in the defense sector, is a major cause for the GDP decline. In July 2011, Congress enacted a cut of $487 billion to the defense budget, resulting in ongoing, significant job losses in the defense sector.
In less than 30 days, unless Congress and the White House act, sequestration will kick in, leading to higher unemployment, reduced tax revenue and lower consumer spending. This will be the second wave that overwhelms our floundering economic boat, likely sinking us back into a recession.
As recently as today, Chuck Hagel, nominee for the position of Defense Secretary, said, “[Sequestration would harm military readiness and disrupt each and every investment program. I urge Congress to eliminate the sequester threat permanently and pass a balanced deficit-reduction plan.”
Sequestration threatens both America’s national security and economic health. Congress and the White House need to focus on a solution that addresses the deficit problem smartly, through a balanced, bipartisan approach that doesn’t cripple our economy and hamstring our national security.
Founded in 1919 shortly after the birth of flight, the Aerospace Industries Association is the most authoritative and influential trade association representing the nation’s leading manufacturers and suppliers of civil, military and business aircraft, helicopters, unmanned aircraft systems, space systems, aircraft engines, missiles, homeland and cybersecurity systems, materiel and related components, equipment services and information technology.
Daniel N. Stohr
Aerospace Industries Association
1000 Wilson Blvd., Suite 1700
Arlington, Virginia 22209 USA
T: 703-358-1078 C: 703-517-8173