Maryland’s economy would suffer disproportionately from the likely downsizing of the federal government in coming years, perhaps losing 150,000 jobs if the 22% reduction in spending recommended by the president’s budget commission were implemented, a new report says.
The report commissioned by business group Blueprint Maryland and done by Anirban Basu’s Sage Policy Group paints a bleak picture of state economy that “has come to rely heavily upon the federal government as a source of economic vitality.”
“The state has arguably taken prosperity for granted,” said the report. “The business climate has become unappealing, which has translated into outmigration from Maryland to other states of both people and businesses.”
“The business climate is associated with high taxes, high energy costs, high land costs, collective bargaining, health insurance mandates and a poor reputation,” the report said. If the federal government downsizes, “Maryland will need to attract significant private sector investment to offset the loss in economic activity.”
But that will be difficult because “Maryland is not properly positioned to take advantage of its array of economic developments amenities, including its scientific and technical talent, its highly competitive public school system, intermodal transportation network, phenomenal spending power, and high quality of life.”
These should make the state appealing, “but conducting business here has become far more difficult than it should be.”
4 comments:
No doubt as Maryland it a true handout Democrat state. We need to take a page from Virginia on how to balance a budget.
Don't count on the private sector for investments. It's obvious that the public is not in an investment mood. Anyway ,why should the public bail out the government.
The government needs to down size ?
Maybe just improve its productivity.
Reminds me of the unions , 4 people to carry a 2x4. 2 carrying and 2 watching out.
Longterm spending is the problem. Massive cuts now (over the next 12-18 months) will only make things worse.
Maryland's fantastic median income stems largely from massive numbers of federal workers living in around the DC area.
Filter that out and what are you left with.
The subject matter has nothing whatever to do with the gratuitous union bashing.
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