Study: Military Spending Cuts Won’t Harm The
Economy

post from ThinkProgress on 09 August 2012 01:00:12 PM. © ThinkProgress

After experts (and a non-partisan government report) debunked claims that automatic military spending cuts set to take effect next year won’t decimate the military and leave America defenseless, Republicans and their allies trotted out a new bugaboo: reducing the defense budget will crash the economy. But experts said that isn’t true either. And now a new study from the libertarian CATO Institute piles on, finding that the cuts are unlikely to have a crippling effect on the broader U.S. economy. “The defense sector is too small a part of the economy for changes in defense spending to have large aggregate effects on [gross domestic product],” said CATO’s Benjamin Zycher.

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http://thinkprogress.org/security/2012/08/09/664931/study-military-spending-cuts-
wont-harm-the-ecomomy/