In today’s Examiner story on how federal defense program cuts are affecting the region, one expert says our economy won’t feel the pain as sharply as we did in the 1980s when President Reagan slashed spending on big-ticket projects.
The cuts today are largely focused on production, such as the Marine Corps’ Expeditionary Fighting Vehicle program, which forced 112 layoffs at General Dynamics’ Woodbridge office. But the Washington region also has a healthy focus on cybersecurity, where defense spending is still strong.
“If I made tanks, ships, or airplanes, I’d be worried because those cost a lot of money whereas IT contracts are much [less expensive],” said George Mason University economist Stephen Fuller.
Still, less money is less money. And as the defense cuts compound with the other federal budget cuts planned as the government downsizes, the local economy will have to look elsewhere for growth.
“It would be wise for local government officials to operate on the assumption that Uncle Sam isn’t going to be a big player in the coming years,” Fuller said.
