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SD Economy May Suffer With Federal Wage Freeze

Federal Wage Freeze Could Cost Local Economy $200M

10News.com

Wednesday, December 1, 2010

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Kelly Cunningham of the National University System Institute for Policy Research estimated the direct loss at $108 million -- pay that would go to federal employees if they got raises -- and the overall loss to the regional economy at $190.3 million. The larger figure includes the loss of direct compensation and the effects of reduced spending.
"Our economy was estimated to be $170 billion in 2009, so a total of $190 million is a little over .1 percent of that," Cunningham said. "In a struggling economy, that's another blow."