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Federal Bail Outs – Why Not Help California? When Governor Schwarzenegger lays out his request for Federal funds to help California, he is not doing it to merely fulfill his role of the custodian of the state budget. He does so to provide needed leadership in steering the state and the nation out of the economic slump. As such, his request has merit, and deserves to be fully funded by the federal government. So far, the major beneficiaries of economic recovery efforts – including the so-called $700 billion bail-out – have been business located in other states, mainly in New York. Although the stated goal was to unclog the credit pipeline, that goal so far has eluded the credit-seeking public and small businesses, particularly here in California. Well, the businesses in California have been generally innovative and imaginative. They have planned well and tried to stay ahead of the competition. They have kept themselves informed, and understood the demands of the market. They did not ignore the writing on the wall . . . unlike some in Michigan, where the response to a demand for environmentally sensitive vehicles was to design oversized, gas-guzzling hybrid SUVs. Must we punish ingenuity and smarts by rewarding the failing industries, and starve the pioneers of cash and resources? A few years back, California's high tech industry, most of which was housed in Silicon Valley, suffered enormous losses and thousands of well-paying and innovative jobs disappeared. That industry carried the promise of a bright future and served as a world leader, instead of relying on a hundred year old product. If memory serves us right, nobody in the federal government lifted a finger to help ensure the viability of that industry. So forgive us if we do not want to continue to take the back seat. As the federal government doles out trillion of dollars in bail-out, the needs of infrastructure in California and assistance to vital industries must be considered a priority. California has been and will remain the leader in progress and prosperity. An economically sluggish and weaker California almost certainly means a weak economy nationwide. Our national leaders, if serious about helping the national economy, must consider the needs of the biggest state in the union. After all, California is the engine that drives the national economy. California deserves equal consideration, if not more than the likes of AIG, Citibank, GM and Chrysler. Specifically, California's infrastructure needs must be addressed. Building infrastructure serves a dual purpose – it jump starts the economy by creating jobs, and provides a backbone for long-term growth and prosperity. House Speaker Nancy Pelosi, Senators Dianne Feinstein and Barbara Boxer, and California’s congressional caucus – from both parties – should see to it that Governor Schwarzenegger's request is fully funded. California deserves nothing less. |
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