Views of State’s Economy Make Odd Political Couples : Campaigns: Rosy outlook may unite Democratic Sen. Dianne Feinstein and Republican Gov. Pete Wilson.

There, on the side of the ballroom where thousands of Democrats gathered last weekend, hung the sign that stood out in the field of bright banners: “America’s Best Treasurer to Revive America’s Worst Economy,” said the one touting the gubernatorial campaign of state Treasurer Kathleen Brown.

But up at the podium was Vice President Al Gore, congratulating the Clinton Administration for stopping the economic slide and putting California back on its feet. “Finally, the recovery has begun,” he said.

The contrast could not have been more startling at the state Democratic convention between the Democrats who portray the economy as in a free fall and those who contend that the state is on its way back.

Don’t expect things to get more consistent anytime soon. California voters are heading into a summer and fall in which most of the Democrats up for election are likely to tout the economy’s revival (for the benefit of President Clinton and themselves) while Brown, the Democratic front-runner for governor, sends forth the opposite message.

The comparison is expected to be most notable between candidates in the top major races on the California ballot this year: the U.S. Senate seat now held by Dianne Feinstein and the governor’s post sought by Brown and held by Republican Pete Wilson.

The year’s strangest political bedfellows will probably be Feinstein and Wilson, both of whom are certain to contend that things are getting better--though they differ wildly on who gets the credit. In a sense, their political fortunes are tied, at least in part, to President Clinton’s, since a rising economy will help all three.

In part, their positioning reflects some political truisms: People vote their pocketbooks, and thus the economy is always a crucial factor in elections, whether it is doing well or badly. And incumbents tend to paint a brighter picture of the economy than do challengers; strong economies benefit incumbents.

David Wilhelm, chairman of the Democratic National Committee and, as such, Clinton’s chief cheerleader, acknowledged this year’s oddity.

“Ironically, there may be some things we’re doing at the federal level that because of the improving economy may redound to his (Wilson’s) benefit,” he said, adding that, “People can make their own judgments about where they stand economically and who is responsible.”

The contrast between Brown and other Democrats came to the fore last weekend, when she unveiled a more focused campaign strategy that aims to take on Wilson for his handling of the state’s economy. She repeated her economic plan, first announced in January, but jabbed more sharply at Wilson and unfurled a new slogan--”One Million New Jobs for California.”

Her new campaign manager, Clint Reilly, said: “California’s economy has been declining since Pete Wilson became governor. The issue in this race is which candidate can best revive California and bring economic prosperity and growth.”

Neither of Brown’s rivals for the Democratic nomination, state Insurance Commissioner John Garamendi and state Sen. Tom Hayden (D-Santa Monica), have focused as much attention on Wilson’s handling of the economy as Brown. Garamendi advocates a massive rebuilding plan for California, and like Brown would set up a statewide fund to provide investment capital for entrepreneurs.

During the convention, Garamendi declined requests from reporters to explain how his plans differ from Brown’s, saying that the strength he would bring to the governor’s office is leadership. Hayden’s campaign is primarily an effort to reform the political system, which he contends serves moneyed interests more than everyday voters.

Regarding Brown’s new slogan, Hayden suggested that 1 million new California jobs will probably be created in four years regardless of who is the next governor. During the last recession-recovery cycle, from 1982-86, 1.5 million jobs were created in California, despite the state’s smaller work force.

“By merely waking up every morning and rolling out of bed, the next governor can take credit for ‘creating’ a million new jobs,” Hayden said. “To promise that in advance is like pledging to raise the sun each morning.”

The broader question in this election is whose assessment of the economy is shared by voters.

Generally, economists and voters have become far more optimistic about California in recent months than in the depths of the recession. Stephen Levy, director of the Center for the Continuing Study of the California Economy, characterized recent economic signs as tentatively optimistic.

“We seem to be in a period between decline and strong recovery,” he said. “For most of the indicators, the downturn has stopped. There are some positive signs.”

That is the view of the Clinton Administration, which intends to spend much of this year persuading Californians that it deserves the credit for the recovery. Holding onto congressional seats here is central to the White House’s strategy for limiting the traditional midterm election losses suffered by the party in power.

Gore pleaded that case last weekend. Clinton and his Democrats, the vice president argued, deserved the credit for creating jobs, reducing the deficit, squeezing interest rates, cutting taxes to most Americans and prompting a resurgence in home building.

“The Republicans in Congress can’t claim one ounce of credit for it,” he said. “Every single one of them voted against the President’s economic plan. Dianne Feinstein and Barbara Boxer voted for it . . . and they’re entitled to the credit.”

Gore’s speech was, in part, a defense of Feinstein, one of whose challengers is airing television ads criticizing her vote for the Clinton budget plan. The ad puts its author, Republican U.S. Rep. Michael Huffington, in the same camp as Democrat Brown. Each contends that things are rotten and the incumbents are to blame.

Feinstein’s campaign manager, Kam Kuwata, insisted that Feinstein and Brown are “not 180 degrees apart” in their views on the economy.

“The recession is beginning to turn around and California is (responding) slower but going in the right direction,” Kuwata said. “Unemployment is creeping down, not as fast as we’d like but certainly turning around.

“We believe . . . that things are beginning to pick up in California,” he added.

But Brown’s newly refocused campaign paints a starker picture. “Without economic revival, we can’t solve the fundamental problems we face,” she states in her economic strategy brochure. “And economic revival can’t happen unless we create new jobs.”

Wilson campaign officials are hopeful that as the year progresses, the recovery will take hold, and with that the confidence of California consumers will rise.

“The state is beginning to see economic recovery, and as that economic recovery continues and jobs continue to come back into California, it’s going to be tougher and tougher to make an economic doom-and-gloom argument and get people to buy it,” said Wilson spokesman Dan Schnur.

Kuwata, whose candidate, Feinstein, ran against Wilson for the governorship in 1990, expects that Wilson will try to claim credit--but not necessarily get it.

He compared the debate over who is boosting the economy to the race by politicians to see who could reap benefits for reopening the earthquake-damaged Santa Monica Freeway. Wilson was first on the scene at the freeway reopening--picking up traffic cones to let the first cars through--even though money for the rebuilding came from the Clinton Administration.

“He who lifts the first cone doesn’t necessarily get the credit,” Kuwata said.