"The hundreds of billions of dollars in cuts to military spending proposed in the federal debt-reduction deal would hit the Washington region’s defense industry hard, forcing layoffs and undermining the local economy for several years, analysts said.
Defense firms around Washington have already been shrinking, but the proposed cuts would slice even further into an industry that is a pillar of the region’s economy, according to economists.
The proposed budget deal would cut $350 billion from defense budgets over 10 years, in the first defense reductions since the 1990s, according to the White House. But the contraction could go much further because the deal calls for the possibility of more deficit-reduction measures by the end of the year.
Under the plan, proposed by President Obama and congressional leaders, if a bipartisan committee does not reach agreement on a second round of cuts after negotiating for about four months, a “trigger” mechanism would kick in, forcing automatic cuts of $600 billion in defense programs".............READ MORE
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