Our reaction to the federal shutdown can shape the region’s future

By Jonathan Aberman From The Washington Post: Many in the greater Washington business community woke up this morning to a very uncertain work week. A federal government shutdown, whether it lasts days or weeks, raises serious challenges to our region’s economic prospects. Virginia Gov. Ralph Northam (D) in a public statement on Friday said the federal

What Does a Shutdown Mean for the Washington Region’s Economy?

During a shutdown, the federal government stops contributing to key components of the Washington region’s economy, including civilian and military wages and salaries, procurement and grants. Altogether, the federal government accounts for 29.9 percent of the regional economy and pays $2.5 billion each week for work being performed in the region. During the shutdown, a significant portion of this activity will stop. The key question, however, is how much of that lost spending and economic activity will be made up later and how much will be forgone entirely. Even if the majority of the spending is made up post-shutdown, losses in efficiency, distributional impacts, and increased uncertainty will have a modest economic costs, which will increase as the shutdown continues. Without back pay, the economic impact is projected to be significant and a three-week shutdown could cost the region upwards of 0.26 percent of its gross regional product.

The shutdown begins: D.C. stresses it remains open for business

From The Washington Business Journal: Reaction started to pour in Saturday morning as Greater Washington woke up to its first government shutdown since 2013. Destination D.C., the city’s marketing and tourism arm, said it is returning to its “DC is Open” campaign to remind the public there is still plenty to do in Washington. The