I’m considered to be a positive person. The news lately on all fronts is challenging even the most optimistic. H1N1 is hitting the U.S. hard with over 100 deaths reported. The economy continues to grow without jobs creation.
Positive stories are out there! Amazon.com is a very positive story. This Seattle based company run by Jeff Bezos is poised to be a big seller during the upcoming Holiday Season. Amazon is challenging the tough economy. The company recently reported a huge jump in profits for the third quarter. A CNN story on Amazon.com can be read by clicking HERE.
This optimist believes there will be many more positive stories about the health of the economy and the health of the World going into 2010. Good news is contagious. One story at a time this economy will get better and jobs will be created. Keep that ray of hope alive. There will never be a vaccine for being positive.
I was reading the Sacramento Bee online this morning and one of the writers Dan Walters posed this question: When the US economy recovers will California be left behind? Great question! The premise of the article is that tax policy and regulation is motivating small business to move out of the State jeopardizing the economic recovery.
I agree that tax policy needs to encourage small businesses to stay in California. However, the California economy may be left behind for other reasons also. The Federal stimulus package is being negated by the policies of Arnold Schwarzenegger. The administration is cutting spending at a time when stimulus is needed to get California’s economy moving. These cuts are the result of the Governor and legislatures inability to save for this storm and their spend, spend, spend practices during good times. No one disagrees that the State is broke. This blogger argues the huge deficits could have been avoided by not spending what you don’t have during the good times. During the good times budgets and spending were based on Rosy scenarios and now the economy will lag other states because California government can not use stimulation as a jump start. State furloughs are another example of failed economic policy. Furloughs do not save the State any money, especially if you consider work that does not get done and revenue that is not generated by employees spending. Furloughs are the result of governments spending in good times and needing to take drastic measures that make no economic sense later.
The answer to Dan’s question is an emphatic yes. California will lag in the recovery compared to other States. There are many reasons, but the glaring reason is not saving yesterday so we can be prepared for tomorrow.
Honoring our great men and women in the armed forces we celebrate Fleet Week. Here are a few pictures from my fun Saturday in San Francisco.
Economics, Opinion-"I'm Just Saying" | blog4boomers October 25, 2009 | 
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