6 States Hit the Hardest By Government Shutdown
The government shutdown was hard on the economy as a whole, but some states took a bigger hit from Congress’s spending bill and debt ceiling standoff over Obamacare. According to Stateline, a study done by Moody’s Analytics placed six states in positions with the highest difficulty.
According to the managing director of Moody’s, Steven G. Cochrane, the U.S.’s economy will probably be back on track by 2014 due to the bipartisan deal from Congress that reopened the government. Until then, New Mexico, Alabama, Washington D.C., Maryland, Virginia, and West Virginia are feeling a little rough.
1. New Mexico
New Mexico’s higher number of research institutions and military bases with civilian employees is one reason that the state is being hit so hard, with an economic drop of 0.63 percentage points. According to Statline, the effects of military base concentration in New Mexico were somewhat gentler because civilian defense workers were put back to work after only a week of the shutdown. “But some spending on services cannot be made up, and the muliplier impacts from federal contractors shutting down will be more pernicious,” said Cochrane.