Download Free Potential Impact Of Defense Spending Reductions On The Us Economy And State Employment Book in PDF and EPUB Free Download. You can read online Potential Impact Of Defense Spending Reductions On The Us Economy And State Employment and write the review.

The purpose of the study is to review the likely impact of reduced military expenditures on the economy of the United States and to identify some of the more pressing problems which may be encountered in the shift of resources from military to non-military uses. (Author).
In this report, the National Association of Manufacturers uses the Inforum Long-Term Interindustry Forecasting Tool (LIFT) model of the U.S. economy to determine the economic and employment impacts of specific alternative scenarios for federal defense spending from 2012 to 2022. The Budget Control Act of 2011 established two mechanisms that could result in large cuts to the federal defense budget, compared to previously projected defense spending. The cuts will include reductions in military and civilian personnel, the cancellation of planned procurement of weapons programs and other equipment, and declines in expenditures for operations and maintenance due to the withdrawal from the wars in Iraq and Afghanistan. Over the short term, these reductions will result in losses to domestic production and jobs, heightened because the U.S. economy is currently operating substantially below production potential and full employment.
This book examines the impact defense spending has on economic growth. While defense spending was not deliberately invented as a fiscal policy instrument, its importance in the composition of overall government spending and thus in determining employment is now easily recognized. In light of the collapse of the Soviet Union and the consequent reduction in the threat to the security of the United States, maintaining defense spending at the old level seems indefensible. The media has concentrated on the so-called peace dividend. However, as soon as the federal government is faced with defense cuts, it realizes the macroeconomic ramifications of such a step. Based on studies included in this volume, we examine the effects of defense spending on economic growth and investigate how the changed world political climate is likely to alter the importance and pattern of defense spending both for developed and developing countries.
By 1997, U.S. national defense outlays would be 28% below their peak level in the 1980s. This report examines the effects of cuts in defense spending not only on the national economy, but also on states, industries, and selected local areas (including California, Maine and Missouri).