Data Shows Sequestration Having Little Effect On D.C. Area—So Far | WAMU 88.5 - American University Radio

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Data Shows Sequestration Having Little Effect On D.C. Area—So Far

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Remember when the sky in the region was going to fall because of sequestration? Well new statistics show that proverbial sky is more resilient than the region's lawmakers first predicted. Sequestration has been in place for nearly three months and the Washington region continues to add jobs — nearly 40,000 — since the budget cuts kicked in.

But Maryland Gov. Martin O'Malley says the new report doesn't paint the full picture. He says business confidence in the region is already low because of the cuts.

"I think what you're going to see is it's going to have a greater and greater impact the further it goes along," he says. "It's sort of a month by month thing. It's not a cataclysmic pulling of the rug. It's more like a vice that gets ratcheted down every month."

Furloughs at many government agencies have also just begun. And further rounds of forced time off will leave thousands of families in the region with less spending money in the bank. Economists say that will likely mean the economy in the region won't fare as well as the summer months roll on.

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