Sequestration Could Hit Washington Area With Recession, Economist Warns
August 15, 2012
The Washington metropolitan area could see a devastating recession from federal cuts associated with sequestration, an economist is warning.
Sequestration -- across-the-board cuts to the federal budget that will take effect in January if lawmakers can’t agree on an alternative -- would result in major job cuts in Washington, Northern Virginia and Maryland, according to Stephen Fuller, director of the Center for Regional Analysis at George Mason University, who spoke to WTOP.com.
The Washington region receives 20 percent of federal payroll and procurement money, WTOP reported, and sequestration job losses in the area could affect 65,000 federal workers and 96,000 contractors.
"It's something you don't even want to draw a picture of because it's too scary," Fuller told WTOP.
He wrote about the impact that defense cuts would have in a paper released in July by the Center for Regional Analysis. The study was commissioned by the Aerospace Industries Association, a trade group for military contractors.