Photo: Courtesy of MSNBC
Today, Paul Ryan will be attending a roundtable discussion with defence industry leaders in North Carolina.He’ll likely try to do what everyone else in the House running for re-election is attempting to do: reassure the business sector that he agrees cuts to defence are terrible and that he will try to reverse them.
But Ryan is partly responsible for the cuts in the first place.
Recall last year that the Budget Control Act — the one that raised the debt ceiling — said that if the Supercommittee fails, then automatic, mandatory defence cuts kick in. Ryan was one of 174 Republicans that joined 95 Democrats in passing the Budget Control Act.
On January 1, the Department of defence base budget will be hit with around $55 billion worth of cuts unless the plan is aborted.
That’s what has the defence Industry reeling at the moment. We took a look into what exactly is on the table before. In short, the cuts will be applied equally across every single procurement contract, resulting in lower quantity orders or pushing back purchases until the Pentagon can afford them.
Business Insider Emails & Alerts
Site highlights each day to your inbox.