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UCLA predicts grim outlook for California economy
[Iran Press TV Latest] Forecasters have portrayed a grim outlook for California's economy, saying that the golden state is going to remain stagnant for the next two years. The new study comes on the heels of a forecast indicating a budget deficit of 21 billion dollars which is going to be the highest among all other US states. Senior economist, Jerry Nickelsburg, who is with the Anderson Forecast from the University of California Los Angeles (UCLA), blames the state's economic downturn on America's lack of spending. "California sits on the Pacific Rim and we're the locust of imports and manufactured consumer goods from Asia...the US consumer is not buying so that industry is not really growing," Nickelsburg told Press TV's Ross Frasier. The Forecast director Ed Leamer thinks differently holding the state's government mainly responsible for crippling the economy. Leamer maintains the best way to revive California is to replace the system running it. "We have term limits, we have two-thirds majority, we have total disarray in Sacramento...and this problem with the budget deficit seems pretty familiar because we were here just a few years ago and we're going to be here again unless we change the way the state is governed," he says. Leamer believes California needs to handle it's economic troubles without aid from the federal government. He says bailout money would only make the problem worse. "My own personal opinion is now is the time to let the private sector do the natural thing it does to help heal the economy, help economic growth occur, and help create jobs for Americans," he says. US President Barack Obama's Administration has proposed a hefty 787 billion dollar stimulus plan to revive the ailing US economy and create jobs for Americans. The UCLA Anderson Forecast predicts double digit unemployment for California until 2012 as it argues the state is not creating enough jobs. "The stalled California economy is simply not producing the jobs required for the new entrants to the labor force over the next couple of years to prevent these elevated levels of unemployment to persist once the job lay-offs cease," UCLA says. Posted by: Fred 2009-12-11 |
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