1994-95: REVIEW AND OUTLOOK : ‘94/’95 TRENDS : Need the Keys to ‘95? Try These : With This Rx, a Stronger State in ’95

As 1994 was ending, we asked the distinguished members of the Times Board of Advisers to peer ahead into the new year and assess the prospects for the world, national, state and urban economies--and to offer their advice to business people and public leaders for 1995.

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For a stronger California economy, let’s hope for the following in 1995:

* Economic recovery abroad. As interest-sensitive domestic spending slows in 1995, a low dollar has American companies and their workers poised to benefit from a spurt of growth in Europe and Japan.

* Sustained growth with low inflation. The Federal Reserve has inflation under control as the U.S. economy expands at a decent, if unspectacular, clip. President Clinton reappoints Alan Greenspan as Fed chairman.

* Republican successes in Congress. The Republicans have a bold agenda that goes beyond just blocking Clinton’s proclivities to raise taxes, spend on new programs and increase regulation of the private sector. In fact, they want to roll back some of the growth of the welfare state over the last four decades. That won’t be easy. But tax cuts, defense increases and relief from federal mandates all would greatly help California.

* Bold action by Gov. Pete Wilson. Look for Wilson to propose important initiatives to improve the jobs climate in California and--if Congress gives states more flexibility--bold reform proposals on, for example, welfare.