North Korea raises the stakes for potential cuts in military spending -- Pacific Business News (blog)

As yet another deadline approaches for Congress to hammer out an agreement that would avoid cuts to the defense budget and other programs, the reductions could affect more than Hawaii?s economy, said Denny Roy, a senior fellow with the East-West Center.

The local economic impact would be significant, since the cuts are likely to include a 10 percent reduction in the $2.3 billion value of defense contracts in Hawaii, which would include furloughing 19,000 Department of Defense civilian employees. In addition, about 9,000 people locally would lose access to job-training programs, and education programs would be hard hit, Sen. Mazie Hirono?s office said.

All this comes at time when President Barack Obama and U.S. Pacific Command are talking about refocusing the country?s military and economic might on the Asia-Pacific Region. That makes one wonder: How do you move ships and troops, build aircraft hangars and do whatever else is need to focus on the Pacific when budgets are shrinking?

Add to the budgetary concerns that North Korea just tested a nuclear device and recently had a successful rocket test.

That has caused the United States to rethink its belief that North Korea is far away from developing a nuclear weapon capable of hitting Hawaii and the Mainland, Roy said.

?This adds ... to the fact that [defense spending in] Hawaii cannot be cut,? he said. ?Asia looks more threatening now. It looks more threatening than two days ago.?

Mark Abramson covers transportation, military contracting and sports marketing for Pacific Business News.

Source: http://www.bizjournals.com/pacific/blog/2013/02/north-korea-raises-the-stakes-for.html

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