Government Shutdown Hits Some States Harder Than Others

Government Shutdown Hits Some States Harder Than OthersDid you know that that delayed mortgage closings will likely have the largest impact in Hawaii, Florida, Arizona, Maryland, and Louisiana – the five states where real estate accounts for the biggest portion of gross product?
That’s just one finding in a report by WalletHub.com on the impact of the government shutdown.
The personal-finance social network has released a report looking at which states stand to be hit the hardest by the stalemate orchestrated by U.S. lawmakers.
The report looks at states that have the highest concentration of federal employees and the most significant federal contracts.
It also examines the areas in which there are large populations of people who have lost, or are at risk of losing, key funding from federal entities, such as students, small business owners, senior citizens, and veterans.
WalletHub concluded that states won by the Republican Party in the 2012 presidential election could be hit disproportionately hard by a prolonged government shutdown, as 15 such “Red States” ranked in the top 25 in the study’s overall “at-risk” rankings.
“With the federal government shutdown entering its second week and no resolution in sight, it’s becoming increasingly obvious that the impact of this forced hiatus will extend far beyond the 800,000 federal workers who are currently on furlough,” said Odysseas Papadimitriou, CEO of WalletHub and CardHub. “And while we’re all losers in this situation, it’s interesting to note that Republican-leaning states stand to suffer the most.”
Here are key findings:
DC, Maryland, Alaska, Hawaii, and Virginia have the most federal workers per capita and are proportionately affected by the shutdown’s immediate impact.
DC, Virginia, Alaska, New Mexico, and Maryland receive the most federal contract money per capita, which means folks in those areas stand to lose out even if they don’t technically work for the federal government.
• Small business owners from the Dakotas, Colorado, Alaska, and Michigan who are looking for funding are hurt most by an inability to garner SBA loans, as those states have displayed the highest small business borrowing rates in recent years.
• Officials in West Virginia, Maine, Arkansas, Alabama, and Vermont should be particularly concerned about a prolonged shutdown, as their states have the most senior citizens per capita.
• Delayed mortgage closing will have the largest impact on Hawaii, Florida, Arizona, Maryland, and Louisiana – the five states in which real estate accounts for the greatest portion of gross product.
• Disruptions to federal student aid programs would be especially harmful to Georgia, Mississippi, Arkansas, South Carolina, and Louisiana, as those states boasted the greatest number of FAFSA applications per capita during the third quarter of 2013.
Alaska, Virginia, Montana, Wyoming, and Maine have the most veterans per capita and would therefore suffer most from a lack of VA funding, which could result from a drawn out shutdown.

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