The so-called Gang of Six, a bipartisan group of senators hammering out a debt ceiling agreement, are considering cuts to the military as part of that proposal. The Air Force Times is reporting the Gang of Six plan would reduce the cost of living adjustment (COLA) military retirees get each year by using the Consumer Price Index to set "all inflationary adjustments." According to the Air Force Times:
The Gang of Six is made up of Republican senators Saxby Chambliss of Georgia, Mike Crapo of Idaho, and Tom Coburn of Oklahoma. The Democratic senators in the group are Mark Warner of Virginia, Kent Conrad of North Dakota, and Dick Durbin of Illinois.
If a debt ceiling compromise isn't reached, the effects could be devastating to San Diego's military-dependent economy. KPBS reported this week that 42 percent San Diego's federal funding is tied to the military. According to National University economist Kelly Cunningham, the failure of lawmakers to raise the debt limit would lay waste to San Diego's economic future:
Here's President Obama's response to the Gang of Six negotiations, courtesy of the Associated Press:
http://youtu.be/tYy3w4lIafA
