What would Trump budget mean for Washington area economy?
The Washington area has been trying, with some success, to diversify its economy in the past few years. But itês still a company town. So Trumpês effort to drain the swamp could definitely affect the local economy.
Thirty-five percent of regional gross domestic product comes directly from federal spending, according to the Stephen S. Fuller Institute at George Mason University. Thatês down from 39.8 percent in 2010, and it is forecast to drop to 27 percent in the next four years. Many federal jobs are at risk, but the expected boost in defense spending will likely mean more hiring by contractors though probably not enough to offset the drop in federal employment.
Stephen Fuller said that 15,000 to 24,600 federal workers would lose their jobs in the first year of Trumpês budget. Between that and the projected drop in federal spending for local jurisdictions, the Washington area could see a loss in federal revenue of $2.6 billion to $3.9 billion a year, he said.
Workers who have lost their jobs, or fear that they could, are of course less likely to be in the new-car market. But for now, multifranchise dealer Jack Fitzgerald, Fitzgerald Auto Malls, told the Washington Post he has not seen any effect on sales.Download Bulletin PDF