As the nation’s debt limit crisis come to a head, Patch.com reported on reactions in Maryland, including concerns about how a default could negatively impact the state’s economy. “State and local borrowing is highly related to federal government borrowing,” said Roy Meyers, UMBC professor of political science. “A spike in federal interest rates would have very serious implications for some state and local governments. Those are legitimate concerns for all local county executives and county counselors.”
Meyers also reflected on the possible state-level impacts of massive federal budget cuts to public programs. “Maryland is reliant on government employment and federal contracting. In the long-term, the strengths of the local economy will be threatened,” he said. “The eventual magnitude of cuts will be larger than what can be put in place this year. Over the next three or four years, local government will have to plan for that eventuality.”
umbcinsightsweekly.wordpress.com 