BPC predicts gross domestic product will decline by 0.5 percent if the full $109 billion defense and non-defense sequester goes through.
The base defense and intelligence budget will be cut by $55 billion or 15 percent on Jan. 2 when politically-sensitive war funding is stripped from the equation, the group said. It warned of a massive disruption in the defense supply chain that could spark massive contract litigation.
“This is a reverse stimulus plan. That’s what we are talking about here,” BPC task force member and former Agriculture Sec. Dan Glickman said.