Stanton concerned about proposed national sequestration cuts - East Valley Tribune: Ahwatukee Foothills

Stanton concerned about proposed national sequestration cuts

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Posted: Friday, July 20, 2012 11:48 am | Updated: 3:23 pm, Thu Dec 13, 2012.

Phoenix Mayor Greg Stanton said Tuesday the proposed national sequestration cuts could have harmful effects on the local scale.

The cuts that could take effect next year, according to a new report, are likely to cut 2 million jobs and $215 billion from the nation’s GDP, or Gross Domestic Product, for 2013.

In Arizona, that could mean nearly 35,000 jobs in the aerospace field, an industry important to our community, Stanton said.

“We have this threat that would potentially put our country back into recession,” Stanton added.

The report was conducted by the Aerospace Industries Association before the defense group hosted a press conference in which Stanton served as a speaker.

Addressing the $215 billion from the nation’s GDP that could be severed, Stanton said it would be the equivalent of the whole state of Arizona’s GDP to be cut.

Arizona’s GDP is around $211 billion, according to Stanton.

That kind of blow to the economy could raise the national jobless rate by 1.5 percent, according to the report’s conductor Dr. Stephan Fuller, of George Mason University.

The report examined how the cuts would affect industries in 2013, which Fuller said is the year that the consequences of the sequester cuts would be most severe.

Fuller’s report also analyzed effects of the Budget Control Act of 2011, which was passed to raise the federal debt ceiling. With sequestration, defense spending would be cut in January unless Congress finds an alternative option for the national deficit.

“Sequestration was never meant to be public policy in this country, it was meant to be a hammer to reach compromise,” Stanton said.

• Diana Martinez is freelancing this summer for the Ahwatukee Foothills News. Reach her at thedianamartinez@gmail.com.

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