California’s Economic Make-Over Is Working
Boeing’s announcement that it will transfer several stages of production on the 737 airplane to the former Douglas production facility at the Long Beach airport is great news for both the South Bay economy and California [“Boeing Looks to Build 737s in Long Beach,” May 13].
The Los Angeles region has seen a significant reduction in the aerospace industry this decade. Boeing’s decision to shift 737 production to Long Beach, along with potentially a billion dollars in facility upgrades, means the industry has come roaring back.
This resurgence is part of a broader statement that California is back in business. In the early 1990s, companies were literally fleeing the state’s hostile work environment. High taxes, rising energy costs, out-of-control workers’ compensation claims and regulatory nightmares caused both major corporations and small businesses to relocate to more business-friendly states.
The Legislature reacted with significant reforms to our economy. Workers’ compensation requirements were changed to control spiraling costs; enterprise zones were adopted for our largest cities; the electrical utility industry was restructured to allow lower, competitive prices; and taxes were reduced over four successive years. In addition, cities and state agencies began simplifying their permit processes and cutting back on red tape. Businesses have started to notice. Our economy is the strongest it has been in decades.
Boeing could have sent this production line to Texas, Utah, Missouri or Washington, but chose California. The economic psychology at work here means that Boeing feels it can make money in our state. Thousands of good-paying union jobs will be saved and even more new jobs may be created because of this decision.
Both business and labor groups are to be applauded for applying the pressure needed to push these kinds of changes through an often reluctant Legislature. The results have certainly been encouraging.
STEVEN T. KUYKENDALL
Assemblyman, 54th District
Long Beach
