REALITY IS GOING TO HIT VIRGINIA ESPECIALLY HARD OVER THE NEXT DECADE!
AS QE FAILS, INTEREST RATES RISE AND THE NEXT MASSIVE ECONOMIC CRISIS PLAYS OUT, VIRGINIA WILL SUFFER MORE THAN MOST.
The threat of a new sequester has Virginia terrified
Watching this year's Washington budget ritual has big economic implications for Virginia. Already this year, there's talk of a possible government shutdown if Democrats and Republicans can't resolve their differences, and that has area businesses focused on the debate that's heating up. The reason for the shutdown chatter? A battle over the spending caps the federal government must adhere to unless a deal is reached to exceed them.
Republicans want to keep sequestration in place but have proposed spending extra money on defense that's not subject to the caps. The White House has rejected the GOP approach and has issued veto threats on defense and nondefense spending bills. If the parties can't agree, the federal government risks a partial shutdown on Oct. 1, the start of the new fiscal year.
What happens between now and then matters intensely to businesses in Virginia. Based on data for fiscal 2014, Virginia ranked No. 1 among the 50 states for total contracting dollars spent on goods and services, and it also ranks first in defense procurement. HE WHO HAS THE MOST TO GAIN HAS THE MOST TO LOSE.
Sequestration has affected Virginia more than most states. As a result of the 2011 Budget Control Act and sequestration cuts, she said, federal procurement spending in the state fell by more than 13% from 2011 to 2014. In 2014, Virginia's economy posted 0% growth, according to the U.S. Commerce Department. Virginia Gov. Terry McAuliffe, a Democrat, has blasted sequestration and has made diversifying the state's economy a priority.