Contractors concerned about impact of fiscal cliff
The fiscal cliff, the name assigned to a number of potentially damaging financial ramifications should Congress not reach a budget deal, has many members of the military concerned. However, it is not just soldiers and top officials who are worried. Defense contractors are worried as well, according to The Washington Post.
Three of the nation's largest contractors say that, while they have had relatively successful years so far, the threat of sequestration - across the board budget cuts to the military - has raised some issues over the stability of their programs. Wes Bush, chairman and chief executive of Northrop Grumman, said sequestration could mean fewer, and shorter, contracts. It could also take time for the government to figure out the impact of the cuts.
"Just the pure mechanics of that process would be daunting," Bush told the newspaper.
Despite the threat of the fiscal cliff, lawmakers, along with President Barack Obama, are confident that the drastic spending cuts can be avoided. However, if they can't, the military could see about $500 billion in additional slashes over the next 10 years.