This transcript is automatically generated
Both congress doesn't act soon one point two trillion dollars in automatic spending cuts are actually gonna take effect early next year.
Our next guest though says that the government contractors the -- has already been done joining us now Marion Blakey.
CEO and president of Aerospace Industries Association.
-- thanks for being with us today you know one point two trillion -- a number I mentioned 500 billion though.
Are the defense defense cuts that are supposed to take -- fact.
And you say your -- it already.
Absolutely I just came from mile board meeting that we're 250.
-- -- CEOs and aerospace and defense got a gap -- And -- very unfortunate news is that they are already having to lay off workers and salaried employees.
These are good high paying jobs.
Over 80000 dollars on average and but caused this the cuts are already going into effect from last year's budget control act that was 487.
Now is staring at 500 billion.
Even the Congressional Budget Office a nonpartisan group.
Report back to congress just last week issued a report and said -- looking at going back into recession because of this it's a very frightening prospect.
An independent study was done and it showed about a 1000000 just over a million private sector jobs could be lost with these cuts.
The thing is though.
Many will argue well there's room to have defense cuts put into place somewhere without necessarily killing jobs.
I wish that -- the case but unfortunately it's not.
Remember that have already been severe cuts to defense 487.
Billion is already in effect.
Now we're adding to it of -- 500 billion.
The fact is that these jobs -- ones throughout the country that really -- fuel our economy.
-- talking about it almost every community every state.
And when you have this kind of unemployment suddenly thrown in to.
What is already a high rate of unemployment yeah -- about 1% you know part of worries me the most actually is that research and development that's going to be cut and we should be a step ahead of our enemies at all time and I think.
We certainly gonna see cuts to those apartments with a win this if and when this goes there.
Tracy -- because this country has always maintained a technological edge.
We don't like the battlefield level when we're at war and we are always more competitive than others because of the kind of RD.
But -- -- -- drying up again I can tell you -- companies can't invest with this uncertainty.
When -- no programs to work -- and basically they're having to pull back in every way hiring.
-- -- -- -- Hiring is drying up but in the long run the R&D is one of the most serious effect.
She now -- you write an imminent have read the constitution the preamble in particular knows that this.
The job of the government is to protect us.
Keep our freedom and protect us from -- so you could almost argue that you know what all the money should be -- -- the Defense Department and forget all the other garbage.
It's a primary responsibility.
Of our federal government and that the whole lot -- -- we are risking our national security.
To secretary of defense in a row both the current when secretary Panetta the previous and Secretary Gates have said catastrophic.
Disastrous that's how they describe this train -- we're looking at and congress can stop it.
But it does take political will -- does man -- of Aerospace Industries Association thanks for taking the time -- -- with us.
If you don't know the preamble to the constitution go.