Sequestration Warnings

The Aerospace Industries Association is out with a report today claiming that if Congress does not reach a compromise to halt sequestration cuts, 2.14 million jobs will be lost and the fragile U.S. economy will be pushed into a recession.

This report is the latest effort in AIA's campaign to stop sequestration. AIA President and Chief Executive Officer Marion Blakey called the study the "most comprehensive" one out yet.

At AIA's report release event, Sen. Kelly Ayotte (R-NH) said she hopes the document will serve as an "eye-opener" for members of Congress on both sides of the aisle, reminding them that they need to find a solution now to a year's worth of sequestration cuts "in a responsible way."

At the same event, Sen. Jeanne Shaheen (D-NH) said Congress must find a long-term solution to deal with the debt and deficit. Otherwise, she said, lawmakers will find themselves in the same predicament again. And, she added, the solution must involve at all aspects of the budget, including mandatory and domestic spending as well as revenue increases.

Ayotte emphasized that lawmakers need to find at least a short-term solution before the election. This, she said, would give lawmakers more time to create a more comprehensive and lasting way to fix the deficit.

A bipartisan working group should be formed to deal with the issue, Ayotte added, noting that some in the Senate already are discussing the idea. And Ayotte conceded that ways to boost revenues must be included in order to reach a bipartisan compromise.