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Thu October 3, 2013
Economist Says Shutdown Perilous For New Mexico
A New Mexico State University economist says the federal government's partial shutdown could thrust the state into another recession if it lasts for weeks.
Assistant professor of economics Christopher Erickson says the stakes are high for New Mexico because the state's percentages of federal employees and military workers are higher than national averages.
Erickson told the Santa Fe New Mexican that New Mexico's economic growth lags the rest of the country and that an extended reduction in government spending and employment would have a major impact.
He says an extended shutdown would force government workers to dip into savings for daily living expenses and curtail their discretionary spending.
Erickson says the cumulative effect could tip the state back into recession.
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