Richest state, enjoy it while you can
Maryland beat out Connecticut, New Jersey, Massachusetts and other rivals last year for having the top median income (half the state's incomes are under the median; half are over) in the nation. As Kelly Brewington reported on the front page of today's Sun, Maryland's median income was $65,144. But, like the Orioles' World Series title in 1983, this victory will not turn into a dynasty. Maryland's economy has been pumped up for six years by federal deficits, federal outsourcing and profligate homeland security spending. The boom is equal to the one we had in the 1980s with the defense buildup under President Reagan.
This bonanza won't end quite as suddenly as the 1980s one did. Then, the end of the Cold War caused a drought in defense contracts, and Maryland suffered much more in the recession of the early 1990s than the rest of the country did. But this boom will end, and it already shows signs. Federal outlays are no longer increasing by leaps. The data on federal spending by state are way out of date, but when they show up they will surely demonstrate smaller increases or declines. Maryland will never sink to the income levels of Mississippi or North Dakota. But it will lose its No. 1 slot at some point to New Jersey or Connecticut, which have wealthy private sector employers that aren't so fastened to the federal nipple.
Comments
Is this a joke? Have you heard of BRAC?
Posted by: Dennis | August 29, 2007 10:09 AM
Dennis,
BRAC is a drop in the bucket for the entire MD economy. We live in a world of proprtions and percentages. BRAC is nothing. It's not even helping out the housing market around Aberdeen as so many hopefull sellers had wished.
Posted by: Josh Dowlut | August 29, 2007 11:39 AM
It's no wonder that Maryland is the richest state with all the taxes we pay, particularly Baltimoreans. But it's a shame that we can't even get clean water here in the Gardenville section of Northeast Baltimore. We bathe and wash clothes with dirty water all because city workers and pols aren't doing their job.
Posted by: Natalie | August 29, 2007 11:40 AM
Natalie, i live NE balt too, news to me that the water is dirty. I drink and shower in the water every day.
Posted by: John | August 29, 2007 12:04 PM
Dennis,
Of course this is a joke, because of the government MD will never suffer a major recession compared to other states. MD may suffer a lesser downturn and a slower recovery because of budgets and tax collection and the governrments slower reaction time.
The author didn't even do his homework. He uses the early 90s as an example of MD suffering worse than the rest of the country. Well Jay, MD was ranked 5th,5th,7th,4th,6th & 4th from 1990 thru 1995. Oh how we suffered. Tell that to the 40+ other states that were worse off then we were.
Posted by: MDer | August 29, 2007 12:18 PM
The Boy Government will tax Marland to death & drive the rest of the comanies & tax payers over the borders.
Posted by: Stuart Lacher | August 29, 2007 1:23 PM