Analysis: Allen Fiscal Recklessness Could Cost U.S. 1 Million Jobs
Richmond, VA - A new analysis from the National Association of Manufacturers released this week concluded the impending sequestration defense cuts designed ease to the national debt that former Senator George Allen recklessly helped rack up will harm manufacturing growth and stifle job creation in states reliant on defense investments, like Virginia. Overall the Association estimates the slow down in defense spending could eliminate 1 million jobs.
When Allen entered the Senate, the country was experiencing yearly surpluses on a balanced budget. In fact, the country was on track to completely eliminate the national debt by this year. However, a swift six years later, Allen had helped take record surpluses and turn them into massive deficits and had voted to add more than $3 trillion to the national debt.
Now, after getting bounced out of office on the strength of that big-spending record, Allen wants to go back to the same place to do the same thing all over again. As a signer of the right-wing cut, cap and balance pledge, Allen has all but guaranteed more cuts to defense, education and other core priorities that would jeopardize job creation in the short and long term in Virginia and across the nation.
"After breaking the bank last time he was in Washington, George Allen continues to ask Virginians to send him back with the same failed policies that led to huge deficits and trillions in new debt," said DPVA Executive Director David Mills. "In a state like Virginia whose economy is inextricably linked to investments in defense, we can't afford to bet on a failed former Senator who's already shown the best he has to offer is fiscal recklessness that straps future generations with debt and forces real leaders to come in and clean up the mess.
"We need a real, balanced approach to creating jobs and balancing the budget, not more of George Allen's spend now, pay later nonsense."
Wall Street Journal Editorial Said The Inevitable Consequence Of Republicans' Balanced Budget Amendment Would Likely Be Defense Cuts. In an editorial criticizing the Republicans' balanced budget amendment proposal -- part of their Cut, Cap & Balance bill -- the Wall Street Journal wrote that it was not "clear that the amendment could avoid unintended consequences. In the current fight over spending and the debt, the GOP Congressional leadership has worked well to protect the defense budget. . . . But under a mandated need to balance spending, the inevitable horse-trading would likely default to cutting defense while ducking fights on domestic programs." [Editorial, Wall Street Journal, 7/19/11]