The Oct. 7 Business section did something worthwhile for California by countering with facts the usual hype dispensed by the California Chamber of Commerce. James Flanigan also picked up on the subject and wrote one of his more cogent columns, "Hardly Lean, We Are No Longer Hungry."
California has had it good for so long that it is only natural for chamber of commerce types to believe that the future will simply be more of the same. However, it should be observed that the federal government's willingness to spend a disproportionate amount of its budget in California accounted for much of the state's luster over the years. With the prospect of an eventual cutback in defense procurement and the continuing deficit crisis at the federal level constraining other spending, a new era may be beginning for California, one in which the state must fend for itself.
Unfortunately, because of severe tax collection and spending limitation propositions passed by the electorate, the state is in a fiscal bind that threatens the collapse of the infrastructure needed for the growth of efficient, globally competitive businesses. It is no accident that the only new companies to succeed in highly competitive consumer markets over the past 20 years are headquartered overseas.