Washington Disi Economic Strength!
Washington DC. Provoked resentment as it continued to demonstrate economic strength even as a large part of the country struggled with the recession.
The Great Recession is one of the most severe economic crises in American history. The capital, Washington, was left virtually untouched when the rest of the country suffered. The capital was also one of the first places to start seeing growth when the recovery began.
Washington's success provoked resentment as the region thrived in the Depression. New buildings and a rich economy were nourished by the federal government and taxpayers. President Donald Trump even managed to gain an enthusiastic base by positioning himself as an outsider who challenged the elite class in Washington.
"During the recession, Washington was much more successful than almost everyone," said Joel Kotkin, of Chapman University. “Let’s face it, it was the only place where jobs were created. So it became a real hit. It was a very high rating for many years. "
The region has expanded by 14 percent since the start of the recession. The rest of the country grew by only three per cent during this period. Local unemployment never exceeded seven percent thereafter, well below the national average.
"We had American convalescence law, when that money flowed out, Disi kept some of it," said Terry Clawar, a professor at George Mason University.
"It had a reduction in spending from the Budget Control Act."
"I like to remind people that Washington is a federal city. It did not exist before 1880, it was then only Georgetown and Alexandria and they were seaports. "But the Washington area has always risen and fallen on federal government spending."
The Great Recession was caused by the subprime mortgage crisis and the 2007 financial crisis. The federal government responded with incentive programs designed to boost the economy by increasing employment and spending. The Problem Assets Assistance Program, for example, which the federal government has purchased toxic assets and equity from financial institutions to strengthen the financial sector.
"The federal government has had to increase recruitment to run the recession," said Professor Stephen Fuller.
They hired more people to do this who helped neutralize the consequences of the recession. Washington also has no production base. It has a very special economy. "
Washington DC. It was also helped by an increase in the number of temporary workers hired to work in the 2010 census. The U.S. Census Bureau hired about 635,000 workers to help, many of whom worked in Washington, D.C. The combination of increased federal spending and recruiting for auxiliary census put the city at the top.
"When post-recession growth began, the Washington area was one of the first metropolitan areas in the country to start growing," said Fuller, who teaches public policy and regional development.
The capital Washington eventually saw its rule come to an end as the rest of the state began to improve. The federal government has also faced new reforms designed to reduce its spending. The 2011 Budget Control Act, the Government Supervision and Downtime Act means less money goes to the government and its capital city.
"You may be able to trace some of that to the 2010 congressional election, when Republicans took over Congress," said Kotkin, who also serves as senior editor.
"President Obama could have concentrated his power, but that's the only thing he could not do. And so the bureaucracy, which of course has become quite enormous, has not grown so much. "
Washington DC's reliance on federal spending is nothing new. The pattern preceded the recession and has been a crucial feature of the city throughout its history. The city was planned to be the home of the federal government and thus it became its main economic motive from the beginning.
Washington DC. Attracted a lot of negative attention due to its ability to succeed when the rest of the economy is suffering. Fuller points out that the perception may be exaggerated based on the study. Criticism often ignores the fact that the city is equally at risk of losing land in line with federal government actions.
"When you compare Washington to the 15 largest metropolitan areas in the country, we are the fastest growing," Fuller said. “Detroit's metropolitan area has surpassed the Washington area in the last six years. "The Washington area looks rich, and looks comfortable, and that's it."
Clare points out that perception will always be around to one degree or another. It does not even have to be directed to Washington DC. Wherever there is a concentration of government, there will likely be taxpayers financing it.
"These federal workers get their salaries based on taxes," said Clawar, director of the Center for Regional Analysis. "There will always be the perception that political capital areas live off everyone's penny."
The federal government also assists non-political industries in not-so-easy areas by being there and providing customers in the form of federal workers and contractors. Clare notes that local politicians have worked to encourage innovative and new industries to help the region become less dependent on federal spending.
"The regional leaders, the economic development leaders, the business leaders, in this region, and even the local political leaders, are very much in line with the region's need to grow the federally independent industrial sectors," Clare said. "In other words, the federal government will always be an important part of this regional autonomy, but it should be a smaller part."