The economy of Silicon Valley depends upon technology, the Central Valley depends upon agriculture. Southern California economy and particularly the Inland Empire depends upon military contracts and business with the Federal Government. That’s why many lawmakers, officials, and residents are closely watching developments in Washington, DC. Of particular interest are the negotiations of the Congressional Super Committee who was tasked with tackling trillions of dollars in debt.
But as their end-of-the-month deadline approaches and a deal seems distant if not improbable, Southern California’s military industry is holding its collective breath. Should a deal not be reached, automatic triggers would cut $600 billion from the defense budget. The impacts would be noticeable.
Several California communities continue to struggle to find footing in a post-military economy. Namely, Vallejo was once a booming military town, and when federal dollars left, so did their fiscal solvency.
From the Inland Valley Daily Bulletin:
The failure of a deficit reduction super committee to find $1.2 trillion in savings could result in the loss of tens of thousands of military jobs in the Inland Empire, according to an area GOP lawmaker.
Lawmakers have agreed to an automatic reduction of $600 billion from defense and another $600 billion in cuts to entitlement programs if the bipartisan group of 12 congressional lawmakers fails to find the $1.2 trillion in savings over 10 years.
The panel was established under a budget and debt deal reached in August.
Read the full article here.