Somehow I don’t think that we need to worry a great deal about this.
Via the WaPo:
The Washington region rose above all other metropolitan areas in 2010 when it came to economic progress. Bolstered by federal hiring and a boost in procurement, the region recorded the nation’s highest net number of jobs gained during a 12-month period as the year came to a close.
But economists are concerned that the momentum may now be threatened as the region’s major industry — the federal government — prepares to face the budget ax. Many in Congress have expressed an interest in slowing federal spending in order to bring the $1 trillion or so deficit in line.
Welcome to the era of government austerity.
The article whines mostly about the demise of government as an economic engine of growth for the region. It’s unlikely that austerity is going to cause all that much economic pain. If it slows growth at the margin some of us would consider that a small victory. I’m not optimistic we will see that occur.