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Boston Business Journal: Defense spending cuts could hurt Massachusetts economy

A UMass Donahue Institute report detailing the size and scope of the economic impact that the region’s military bases have on New England was cited in a Boston Business Journal article posted on the Republican website. The article outlines the pending sequestration trigger, which could slash a total of $500 billion from the Department of Defense and severely curtail defense spending in Massachusetts and throughout New England.

According to the June report, the six New England states received nearly $34 billion in DoD and Department of Homeland Security contracts in 2011. Defense and Homeland Security contracts are responsible for more than 319,000 jobs and a total payroll of over $22.6 billion. More than 5,000 New England firms and institutions are reliant on DoD and DHS funding.

The report concluded that such funding is responsible for $62 billion in economic activity throughout the region.

Read article: Defense spending cuts could hurt Massachusetts economy

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UMass Donahue Institute

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