As concerns about DOGE and its potential impact on the economy grow, one question on listeners’ minds is how it will affect Florida’s economy. Brian Mudd, a radio host, weighed in on this topic.
Mudd believes that there is no chance of an imminent recession, citing successful corporate earnings season with 13% year-over-year growth, leading to increased investments and job gains. The Federal Reserve’s GDPNow tracker projects first-quarter growth at 2.9%, with forecasts bumping up to 2.3%. Most economists project growth above 2%.
Florida stands out as a state that relies less on federal spending, with an average of $2,693 per person compared to the national average of $4,000. This means that any direct financial impact from reduced federal spending will be less severe in Florida.
The state’s economy is also diversified, with tourism making up only 9.5% of its economy. Despite this, Florida’s economy ranks as the 16th largest in the world, and growth is expected to surpass 3% this year, above the national average.
Mudd notes that a potential recession could affect Florida’s economy due to the state’s high reliance on tourism. However, the unemployment rate remains low, and public employees who are laid off will likely find new work quickly. Furthermore, reduced federal spending could help lower inflation rates and spur economic activity in real estate.
Overall, while there are some concerns, Mudd believes that Florida’s economy is resilient due to its diversification and strong fundamentals.
Source: https://wjno.iheart.com/featured/brian-mudd/content/2025-02-25-qa-of-the-day-how-will-doge-impact-floridas-economy