A steady economy predicted for 2005

A steady economy predicted for 2005

Cautious optimism summarizes last week’s Regional Economic Forecast in Westlake Village. The Thousand Oaks/Westlake Village Regional Chamber of Commerce and T.O. Rotary Club symposium was the second in a series of 2005 outlooks presented by area economic experts. They said this year’s economic growth is expected to mirror last year’s, but with several caveats.

According to Dr. Charles Maxey, dean of Cal Lutheran University’s School of Business, certain negative factors at the state and federal levels will trickle down to the local economy. War, oil prices, trade imbalance, federal deficit, declining dollar, national housing "bubble," and constraints on consumers will keep the economy in a state of flux and prevent the type of full-blown growth that was experienced at the end of the 1990s, Maxey said.

It’s time our elected officials acknowledge that a strong economy alone cannot correct the federal and state deficits. A robust economy won’t "outgrow" them.

Sacramento, in particular, will have its work cut out. State leaders must deal with the budget crisis, housing prices, energy policy, workers’ compensation, skyrocketing health insurance, overregulation, and other factors that drive up the cost of doing business in California. It’s no wonder that so many jobs are being outsourced to foreign markets. From Calabasas to Thousand Oaks, however, the demand for telecommunications, science, and service sector jobs remains strong and keeps the housing market vibrant. Still, local businesses are worried that they won’t be able to attract workers because of the high cost of housing.

Our cities must do whatever they can to make homes more affordable.

One thing is certain: nobody "controls" the economy. But government decisions have a major impact–both positively and negatively. It’s time government and businesses work together.

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