Virginia: Thank You, Asia; The Slump Overseas May Be Benefiting the State's Consumers
Don't go looking for it in Virginia yet, says Roy L. Pearson, who analyzes the state's economy at the College of William and Mary.</br></br>The deep slump in Asian economies has spread recession and hardship there, with Latin America standing next in line and the U.S. economy looking at risk.</br></br>But the crisis has actually helped Virginia thus far, says Pearson in a new report by the college's Bureau of Business Research. His analysis would apply to Virginia's neighbors, Maryland and the District, as well.</br></br>Virginia's consumers have benefited as Asian manufacturers cut prices in hopes of boosting sales. The dollar's strength -- until recently -- also created bargain prices on Asian-made goods.</br></br>Lower import prices contributed to lower inflation in this country, Pearson noted, making U.S. workers' paychecks go further. The recent drop in interest rates, engineered to protect the American economy from Asia's problems, have given another windfall to homeowners who refinance their mortgages.