Facing huge potential cuts, defense industry goes on offense

CBS

The so-called congressional "super committee" got to work this week, beginning its task of finding trillions in budget savings. Sharing the halls of Congress with those "supers," the defense contracting industry also got down to work this week, in a full-court press to convince Congress to cut spending anywhere but in the Pentagon.

Charged with finding at least $1.2 trillion in savings before the end of Thanksgiving, the "super committee" could influence the course of government policy, economic growth and the overall national trajectory for at least a decade. The group of12 promises to put scrutiny on every "sacred cow" in Washington, from Medicare to defense.

With that kind of power, it's no surprise that corporate lobbyists are gaming for access to super committee members. The defense industry in particular has much at stake -- if the super committee fails to agree to a plan for $1.2 trillion in savings, it will automatically "trigger" certain measures into effect, including $600 billion in defense cuts.

CBS

Already this year, the Budget Control Act -- the debt ceiling deal that spawned the super committee -- puts Washington on track to cut $350 billion from the defense budget over 10 years, in the first defense cut since the 1990's. More cuts this year to the Pentagon seem inevitable, but defense contractors say that doesn't have to be the case.

"Defense has been cut into the bone, and we cannot have that continue," Marion Blakey, president of the Aerospace Industries Association (AIA), said at a press briefing this week. "As far as defense is concerned, the cuts have been taken that could be absorbed."

Perhaps fortunately for AIA, some of its strongest allies sit on the super committee. The group's co-chair, for instance, is Democratic Sen. Patty Murray, who represents Boeing's home state of Washington, is a founding member of the Senate Aerospace Caucus, and a member of the Senate Appropriations Defense subcommittee.

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But defense contractors are looking past Murray, crafting a message for an entire Congress that's itching to slash budgets, as well as a war-weary nation. Cut $600 billion from their industry, say companies like Lockheed Martin and Northrop Grumman, and nothing less than America's economic strength and national security would be at risk.

"If we had additional cuts of $600 billion ... I would question whether or not we will have a fighting force that's capable, or an industrial base left," Jim Albaugh, president and CEO of Boeing Commercial Airplanes, said at the AIA briefing.

AIA took that aggressive message to Capitol Hill this week for National Aerospace Week, an event established by Congress that happened to fall on the week the super committee was getting to work. During National Aerospace Week, representatives from Boeing and other big-name defense contractors were on the Hill holding policy luncheons, hosting exhibits and meeting with members of Congress and staff to show off their industry's strengths.

On Tuesday, after the super committee held its first public business meeting, the Aerospace Industries Association presented Murray with its "Wings of Liberty" award to honor her advocacy for their sector. The AIA said the decision to give Murray the award was made long before she was appointed to the super committee and was intended to honor the four-term senator's longtime service to the industry.

The industry has given more than just awards to Murray; she received $195,810 in donations from the defense industry for her 2010 election campaign. Just three other Senate candidates received more.

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Murray's office says the senator's advocacy isn't about catering to a deep-pocketed special interest, but about protecting a sector that employs a significant number of her constituents.

"Senator Murray has fought for American aerospace because it provides good, family-wage jobs for workers in Washington state and across the country," said Matt McAlvanah, a spokesman for the senator.

That doesn't mean defense cuts are off the table, McAlvanah added.

Murray "has also been clear from the moment that she was named to the Joint Select Committee that a bipartisan, balanced solution is going to include some things that will be difficult to swallow for everyone," he said. "Balancing the unique needs of the aerospace industry, the jobs it creates, and proposed cuts will - like so many of the serious issues facing this committee - mean tough choices for Senator Murray and all the other members."

With such stern words from one of their biggest supporters in Congress, the AIA doubled down and launched a campaign called "Second to None" to educate all lawmakers and the public at large about the aerospace and defense industry, which the firm Deloitte says supports more than 1 million direct jobs and 2.9 million American jobs overall.

In unveiling the campaign this week, Blakey said that further cuts to the industry pose a "deep risk to our national security and our economy," with the potential to kill "hundreds of thousands" of American jobs and "decimate" research and development that's critical for the defense, air and space industries.

Blakey said AIA decided to launch its "Second to None" campaign before the super committee was formed, since it was clear much earlier that Congress was ready to start making significant budget cuts.

The group is busy meeting with as many lawmakers as possible, including super committee members like Murray, Rep. James Clyburn, D-S.C., and Sen. Pat Toomey, R-Penn.

"It's hard to tick off all of the members we're engaging with," Blakey said. "People are listening very closely."

Some opposed to the United States' ongoing military operations are concerned Congress is listening a little too closely. The liberal group Brave New Foundation, which earlier launched the initiative "Rethink Afghanistan," launched a new campaign this week called War Costs to counter the AIA's "Second to None" campaign.

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The deficit discussion in Congress right now, the War Costs team argues, "is a zero sum game, pitting military spending against the exact kinds of spending that would create more jobs." The group points to research suggesting government funds could more efficiently create jobs in sectors like health or education, as well as a study indicating the defense sector has inflated its significance in terms of jobs.

Other groups, meanwhile, have been more concerned about the influence special interests in general will have on the super committee. One liberal group zeroed in on Murray's role as super committee co-chair not because of her ties to the aerospace industry, but because she is chair of the Democratic Senatorial Campaign Committee. The group asked Murray to step down from that role, which makes her one of the chief fundraisers for the Democratic party, while she's serving on the super committee.

It's unlikely the super committee members will stop fundraising while they search for budget savings, but lawmakers from both sides of the aisle have at least called for more transparency -- Sen. David Vitter, R-La., introduced the Super Committee Sunshine Act, for instance, while a bipartisan group in the House introduced the Deficit Committee Transparency Act.

[hhandyman]

they are trying lime most of Corporate business to keep employment low and pay low to workers it's about time to trim the lobby income and go back to a nation that lives in its means in the war room too.
No more wag the dog and Fat cat political games in peace and war bucks. LET THE HALLABURTONS DO A DISCOUNT SALE ON THEIR OVER STOCKS INVENTORY AND INGREDIENT SUPPILY.

DUE TO REGULATIONS ON SALES OF GOODS INTENDED FOR DESTRUCTION
BY DEPARTMENT OF TOBACCO AND FIRE ARMS REGULATORS
Would it be terrable if the war machine went bankrupt for lack of need?

[slatep]

More scare tactics.!

We have the right "to form a militia" to defend and secure our country.

For the last 2 1/2 years, it seems we almost need to form a militio to defend ourselves from a bunch of thieving, lying, corrupt politicians.

"Political correctness be damned".!

We need people in Washington who are willing to protect and save the average American and not big banks, Wall Street, big business and the wealthy to further line their own pockets.

Technology is allowing us to create more and more efficient weapons every day; requireing fewer and fewer troops to enable their use.

We presently have more than 100,000 troops in two foreign countries; putting their lives on the line every day for people who are our friends by day and our enemies by night.

Just think how much we could accomplish securing our own borders and using the knowledge and expertise of these men and women to rebuild our own infrastructure here in the US.

Our troops in Afghanistan are actually wearing disguises while building schools, etc, in Afghanistan, because if the Taliban discovers there are Americans building these structures, they will blow them up before they can even be finished.

These wars are costing American billions of dollars every year; a lot of it going to a country where it's own leader (Karzai) has admitted playing both ends against the middle by accepting "bags full of money" from Iran.

More than 6,000 American lives have been sacrificed (more than twice the number killed on 9/11) and hundreds of thousands maimed or wounded fighting these wars.

Our original "missions" into these two countries have been accomplished.

Our children need their mothers and fathers to be here with them.

These children should no longer have to live with the pain of missing a parent and the fear they might never see Mommy or Daddy again.

Just bring our troops home and stop sending billions of dollars to countries who hate us.

[ALLCONEWS]

CAN AMERICA CHANGE FROM BECOMING A WAR MACHINE?

Diplomacy is the most important factor concerning International Sovereignty . Relationships with our allies supports our strong diplomatic strength. Economic sanctions with adverse manipulation of assets are the next important responses. Embargo restricting passage of vessels or restrictions of trade is our best choice before military action is used.

Military raw power is not a choice that the American Voters want. America should not be known as the war monger country. Military acts of aggression should not be the American way.

America has resorted to force too quickly and hastily before exhausting all other techniques of diplomacy.

America has to retrain its military to be only a back up measure to never be used as a first response unless our future is being threatened. Our military should never be used to fight another countries battles unless there is a threat against our future with our equal allies.

What has evolved to our civility and our strong bonding with our allies?

America is running scared with the explicit threat of force not just with other countries but also with putting good citizens in jail without evaluating domestic diplomacy that will resolve 95% of the victimless crimes.

Do we really need to build more jails is that what our country has become a big baby sitter for degenerates?

Sophisticated diplomacy both at home and abroad is always the best solution with the best results. America needs to turn over a new leaf how to deal with issues without using aggression as a first choice.

America is too civilized to resort to Caveman Principals of governing domestically or internationally. Military expenditure is our last resort to maintain civility between world powers.
Resolving issues after military force is used is the most costly and never ending response prohibiting the use of force.

Let's put our perspectives back in order before we become war mongers of the world. Cut our military down to a reasonable level that is under control and not effecting our productivity or our budget. America does not live to expand the military if so then we are doomed by our own devices.

Do we really want 4 more years of this?

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[Bonedaddy777]

I think that an automatic trigger of a $600 Billion dollar cut was a brilliant idea. I dont necessairly want to see that cut because it means a lot of layoffs; however, it is time for republicans to negotiate in good faith and stop stonewalling the democrats just because they want to defeat President Obama next November.
So, either accept revenue increases through closing corporate loopholes and making the wealth in this country pay their fair share; or, cut $600 billion from the defense budget!
Question is, which will they choose?

[Jaylah54]

I get so sick and tired of the "Defense Industry" talking about "national defense" being the reason their budget cannot be cut at all.

It's hard times, folks, and that means there are no sacred cows. And that includes the DOD.

[Palrak]

Excuse me, but I think that the defense of our nation IS a sacred cow. I'm not for more wars, but I want us to be defended on our soil.

Would someone please explain to me why, if they don't come to an agreement, that a$600B cut will automatically be triggered? Who thought that one up?

[southpaw99]

Cut the defense spending bigtime.
Such an absolute WASTE of OUR money.

[Progress4USA]

Squeal little piggy...squuuuuueeeeeeeeaaaaalllllll!!!!

[jtdev1]

Defense (more like offense) is the single biggest item in the budget.

At least Social Security, Medicare are separately funded and fully funded at that (if they kept their hands off the excess)

Defense is NOT fully funded.

[Traveller1977]

the US spends the same on defence as the rest of the planet. The US navy spends more than the next 13 biggest navies combined - of which 11 are navies of allies.

You might think they could find something to cut :)

[MurdochSucks]

Why do we call it the Defense Industry when Defense is clearly not the intention of the industry?