While much of the country is experiencing high levels of unemployment and many states are bordering on Bankruptcy, the economy in Northern Virginia is booming.
When the economy is collapsing and we are on the brink of a deeper depression than the thirties, possibly irrevocably altering our political landscape for decades and our overall way of life, is there a bubble-effect in the Potomac region on lawmakers, their staffs, lobbyists, and the general public? Most respected economists agree that the bill is too small. That more money needed to be spent on infrastructure, and not tax cuts. That enacting a bill that isn't quite what's needed can actually be worse than doing nothing at all.
And furthermore, much of the spending included in the Stimulus Package will disproportionately benefit Northern Virginia. So, does Northern Virginia (where many contractors, government employees and donors live) serve as a bubble to the extent of the state of the Economy? And if so, won't these increases in spending that will hugely benefit Northern Virginia further isolate the region to the realities of the country, exacerbating any radical actions taken by the President and Congress?
The unemployment rate in Northern Virginia is hovering between 3.2-4%. And from September 2007-2008, while negative growth was experienced nationwide, Northern Virginia added 12,800 new jobs. The services in many parts of NOVA--including where I live Fairfax County--are phenomenal, with one of the best metro systems in the country, great schools, and roads that aren't cluttered with pot-holes. Much of the success of Northern Virginia has to do with the proximity to Washington which is very attractive to many companies; however, it also has to due with prudent investment by the State and Federal Government.
With average incomes in excess of $100,000 in a number of counties surrounding Washington, D.C. there is relative affluence. Many in the region have lost considerable wealth due to the Housing-market bubble burst. Per the great housing market blog Northern Virginia (NOVA) Bubble Fallout, January sales prices were deflated by 21.66%. Fairfax County's foreclosure rate is 1.73%; In Arlington it is .055%. While the foreclosure crisis swept the nation, the Northern Virginia area was mostly spared; incredible losses of value to the homes yes; but few actually being foreclosed on.
At the same time that Northern Virginia has been spared mostly from the current economic turmoil, they have a tremendous amount to gain from the Economic Stimulus Package:
-$20 billion in health information technology
-$10 billion for Transit and Rail
-The administering of all other funding, given that the agencies will have final jurisdiction over how many of these monies are spent.
So, again, the psychological effects on the Northern Virginia economy will reassure many in Washington that the stimulus is working, even if it isn't generating enough jobs nationwide. Is there any way to ensure that this mentality isn't solidified? Perhaps not. What do you all think?