Harvard cuts could severely damage Boston-area GDP, report says
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The Trump administration's federal funding cuts and student visa clawbacks targeting Harvard could deal major damage to the Boston metro area's GDP, a new economic impact analysis projects.
Why it matters: The efforts to derail Harvard not only hurt the Cambridge school's standing, but also disrupt the surrounding region, says Bjorn Markeson, sales director and economist at the economic software analysis company IMPLAN.
- "It's not a higher education problem. It's a Boston problem," says Markeson, who authored the report. "It's a New England problem."
Driving the news: The $2.2 billion in federal research cuts could deal a $2.9 billion blow to the Boston metro area's GDP and affect up to 15,500 jobs, per the report.
- Those jobs are not only researchers, but workers in the supplier industries.
- That estimate doesn't include the loss the region would face from a drop in international students, household spending and business-to-business transactions.
By the numbers: Harvard is home to nearly 7,000 international students.
- Assuming each international student spends $3,000 a month, the report estimates the population supports more than 1,125 jobs and contributes some $180 million to Boston's GDP.
- Household spending alone supports another 5,000 jobs and contributes $760 million to the region's GDP, per the analysis.
- B2B deals support roughly 1,700 jobs and contribute $240 million to the local GDP.
Reality check: The report spells out the worst-case scenario, so the economic hit to the Boston area may not be so severe, especially if President Trump's efforts targeting Harvard get crushed in the courts.
Yes, but: It would likely take a year to feel the full extent of the economic impact, Markeson tells Axios.