Today the Task Force on American Innovation, chaired by NAM and Texas Instruments, sent a letter to the President and Congressional leaders calling for a halt to the sequester. Signed by the heads of leading business and technology associations, the letter represents thousands of businesses, educational institutions and other interested parties. The sequester is set to make across the board budget cuts to discretionary spending, with much of those cuts to the defense sector.
The NAM has led the opposition to the sequester basically since its inception. Manufacturers released a study detailing the serious damage that these cuts will have on our economy – we took that message around the country and have used every tool at our disposal to make sure that policymakers are well aware of the damage that will be inflicted.
Unfortunately, in the 18 months since the Budget Control Act was passed, Washington hasn’t found a way to avoid the sequester and the numbers haven’t changed. If the planned defense cuts go into effect we’ll see a body blow to our efforts at economic recovery.
- Over 1 million jobs lost
- A loss of 1% of GDP
- An 0.7& increase in the unemployment rate
Additionally, we would see a drain on innovation and scientific advancement that manufacturers rely on to drive their business in such a competitive global economy. Continued economic growth is the true solution to our fiscal issues and if Washington allows the sequester to become a reality, we will have eliminated one of the most critical elements for success.
The cuts undermine our economic growth in a shortsighted fashion that will hurt America for generations to come. The businesses and other organizations that signed the letter to the President and Congressional leaders are not crying wolf – it’s a very real threat to our ability to grow and lead the world economy and it’s entirely self-inflicted. It’s beyond time to solve this problem and get focused on growing the economy.