Posted by: Ann Corcoran | July 31, 2011

As federal budget is cut, anti-private business Maryland will suffer more than most states

Interesting story in The Capital today on what could happen in Maryland if the federal budget is cut—and it will be, it’s just a matter of how much and how soon.

The (Annapolis) Capital:

While Congress and the White House were fighting last week over spending cuts, tax hikes and the debt ceiling, a business group released a report examining what would happen to Maryland if federal spending were cut by 22 percent, as suggested by a bipartisan commission.

Though the report does not break down the numbers by local jurisdiction, it states that Montgomery, Howard and Anne Arundel counties would be the hardest hit.

Overall, Maryland would lose up to 150,000 jobs, according to the report from Blueprint Maryland, a business group founded just this year. About 82,000 of the jobs would be linked directly to the federal government, according to the report, “Maryland’s Business Climate and Vulnerability to Federal Downsizing.” Another 66,000 would be related, such as the store clerks who sell merchandise to federal employees and their families.

About 287,000 federal workers live in Maryland, according to the U.S. Census.


If the 22 percent federal-spending reduction took place, the state’s unemployment rate would rise from 6.8 percent to 11.8 percent, according to the scenario presented in the study.


When it comes to private-sector jobs, Maryland is quite a different place.

While it ranked No. 2 behind only the District of Columbia in GDP attributable to the federal government, it ranked No. 44 in the country in creating private-sector jobs during the 12-month period ending in April of this year.

We just had a report in June, here, that Maryland was dead last in job creation.  Forty fourth or last doesn’t make a whole lot of difference, both are awful.

See the entire “Blueprint” report here.

Read the whole article about the Maryland legislature’s disdain for business (unless it’s federal government business).

By the way, look for reporting from Hayley Peterson at the Washington Examiner on Maryland economic news.  I’ve been seeing some good reporting by her like this story I meant to post a few days ago along the same lines as this Capital story–‘Maryland faces another $1.1 billion budget gap.



  1. Simply another example of why socialism does not work. “Everyone” can not be reliant on, or employed, by the government. As the state of Maryland is about to learn, and the people of Maryland are about to learn. Margaret Thatcher, I believe, said it best: “Socialism is great until you run out of the other guys money. The millionaires have left Maryland because of Maryland’s tax code and the business’ are leaving because of Maryland is not a right to work state. It’s gotten so bad here that the state of Maryland is now forcing its own employees to pay, the equivalent, of union dues whether they join the union or not. Thats needing money bad, when you as a government have to take the money back from your employees that you just gave the money to.
    Throw in the illegal immigrates taking jobs that Marylanders could use, want, and need, Yea, Maryland is a mess. And its not going to get better anytime soon. Brace yourself Maryland.

  2. Virgina is looking better all the time!

    • Boo Hoo! Don’t leave! What will we do when all the good conservative folks move across the borders!

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