Article: The Myth of Federal Spending

We now know that the federal government is spending more and not less for goods and services in the Washington area. And that has a lot of people confused about what went wrong with the local economy.

It had been widely assumed, without any real basis in fact, that the local economy's sharp decline over the past year was due in large measure to a drop in federal spending. Some still subscribe to that theory, though a recent report on federal purchases in the area has effectively put an end to such speculation.

At the same time, however, that report appears to have created a $3 billion mystery.

The report, which was prepared by the Greater Washington Research Center, shows federal ...

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