Sequestration could boost unemployment, altering 2012 politics?
The looming threat of sequestration is proving to extend beyond the walls of the Pentagon, making its way into the political arena as the November elections get closer.
Not only will the additional $500 billion in defense cuts have an effect on the lives of more than 1 million government contractors and manufacturers, but incumbents up for re-election in November could face defeat as voters associate the spiraling economy and the major cuts.
Sequestration cuts are set to automatically take place following the failure of the deficit-reduction super committee.
Defense companies such as Lockheed Martin — the world’s largest — and Northrup Grumman are preparing to hand out pink slips to employees in preparation for potential layoffs in the thousands.