Sunday, June 23, 2024
Hawai'i Free Press

Current Articles | Archives

Monday, February 18, 2013
Wells Fargo: Hawaii to be Hardest Hit by Defense Cuts
By Selected News Articles @ 8:50 PM :: 7712 Views :: Economy, Military

Sequestration: Which States Are Most Vulnerable?

by Mark Vitner, Senior Economist and Michael A. Brown, Economist -- Wells Fargo Research Feb 18, 2013 (excerpts)

Over the course of the past few weeks, it has become more and more likely that the sweeping set of automatic federal spending cuts known inside the D.C. Beltway as “Budget Sequestration” will take place as scheduled beginning on March 1. In order to assess the potential regional impact of these budget cuts, we have identified those states that have the greatest exposure to federal funding cuts. We utilize the metrics calculated by the Pew Center on the States for federal spending as a percentage of state GDP.1 We then identify those states that are most susceptible to defense and those most susceptible to nondefense spending cuts. Even a cursory review of the data shows that the process of budget sequestration will harm certain states disproportionally. In general, the greater Washington, D.C. area and southern states will be the hardest hit, while states in the Midwest and along the West Coast will likely be impacted to a lesser extent. While the impact of budget sequestration could be severe, there is some reason to believe that at least some of the cuts may be partially reversed in the months ahead….

Among the states most likely to be impacted is Hawaii, home to the U.S. Navy’s Pacific Fleet, which could see layoffs and reduced income growth, which in turn would weigh on economic growth….

Top 10 States With Exposure to Defense Cuts

Federal Defense Spending as a % of 2010 State GDP

Total Federal Spending as a % of 2010 GDP

                                                         Defense                        Total
Hawaii                                                14.6                               15.8
Alaska                                                10.5                               13.3
District of Columbia                               9.8                               19.8
Maryland                                              9.8                               19.8
Virginia                                                9.8                               19.8
Kentucky                                              8.0                                9.9
Alabama                                              7.0                                8.9
Missouri                                               5.9                                7.6
Connecticut                                          5.3                                5.8
Arizona                                                5.2                                6.6
Source: Pew Center On The States and Wells Fargo Securities, LLC

Read: The Entire Report (pdf)

Nov 2012: For Hawaii, Fiscal Cliff Means Automatic State Tax Hikes, Massive Defense Layoffs

PEW: Impact of Fiscal Cliff on the States

SA: Wells Fargo: Hawaii most vulnerable to defense cuts

Military Spending: In pursuit of Ideology, Hirono Votes Against 18% of Hawaii Economy


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii