California's Economy

On Coping With the Drought: Don't Let the Rain Get Away

California's problems are continuing to increase, as Governor Arnold Schwarzenegger just recently declared a statewide emergency in regards to the drought they are now facing. This drought is caused by the rapidly increasing population, and the continually warming climate. Although the amount of rainfall has not changed significantly, the population in California is posing great constraints on its water supply. "California's population grows by one person a minute" (The Huffington Post), and in the past forty years, the population has nearly doubled. As the population has increased, California has adapted in response to this growth by constructing new road, establishing more schools, expanding the agricultural sector and many other aids to accommodate the rapidly growing population. However, in regards to California's water storage and conservation, the last initiative they established was in 1967 when they established Lake Oroville. Today's recession and struggling economy poses a controversial issue for California lawmakers. Do they make efforts to expand water conservation and storage to protect against drought and an even greater economic crisis, or do they put this item off of the agenda while their economy is struggling and their budget is limited? Their possible solution for increasing the water supply is to create a reservoir in Colusa County, which they believe to be cost effective and environmentally beneficial. They would use the water from canals that are already close to this bowl that are currently dumping into the Sacramento River, which is dumped into the Pacific Ocean. California's current conservation of their rainfall is not effective because most of the rainwater is flowing into the rivers and back into the ocean, rather than being contained by dams or reservoirs to preserve water for the future and ever expanding population. This solution was posed over fifteen years ago, however, today it remains as one of the few answers to California's water crisis. The current drought and water crisis that California faces currently is mind boggling considering their current state of economy. Not only are they fighting to make ends meet and have seen a drastic decrease in unemployment, but now the citizens well being is threatened even more. It is mind boggling how the state of California has exceeded their budget and just recently coped with trying to fix their budget crisis, and to have not spent any of that money on an obvious problem since 1967. This seems irresponsible of the government to have not addressed this issue as they did the other issues that were caused and affected by the ever increasing population such as roads, schools, and agriculture. I also find it interesting that California, a state that prides itself in being green and environmentally friendly, has not conserved this natural resource as it has other resources. For example, California has some of the strictest laws in regards to emissions, and also especially in the Bay Area, they are fighting against the use of plastic bags and are revolutionizing the idea of reusable canvas grocery bags. This crisis that California faces does not seem to have good timing since it has come during a time of not only a statewide economic crisis, but also a national recession. This makes it more difficult for lawmakers to decide on what to do in regards to the water crisis and whether to use their budget money to create this reservoir, especially at a time when they are cutting many other spending projects such as new roads, and other structures.

How Obama's Budget Proposal Affects Californians

Obama's budget proposal for the most part supports California's interests with few negative effects. One of the proposals Obama is making is in regards to high speed rail as he is promising $5 billion dollars in addition to the $8 billion in the stimulus package, which poses great gains for California. California voters approved $10 billion worth in state bonds to establish a high speed railway from San Francisco to Los Angeles, and from the Central Valley to the East Bay. This possible gain could really enhance the economy and change the life of California because as a California native I understand the desire to reach LA by train from the Bay Area due to the long car rides congested and slowed by hours of traffic. I know that in the Bay Area Cal Train and the light rail are very popular for many business men and women to use in order to commute to work. It was especially beneficial when gas prices were high, considering most of California's cars are SUV's and gas guzzlers. This would make commuting much easier, and expand the possibilities for businesses within California. Also Obama's proposals concerning education tie the Pell Grant program to inflation which would provide students with about $200 more in financial aid per year along with possible tax credits for college expenses. These proposals provide a great benefit for college students, and would provide a state with many low income students, and immigrants with increased opportunities. Another area that coincides with California's interests is Obama's desire to implement the cap-and-trade plan to decrease emissions. This would benefit California because currently they are one of the states with the strictest emissions laws, and they would not have to rework their system a lot to accommodate this new plan. Also, it would coincide with their strong beliefs and desires to cut back in greenhouse emissions and be environmentally friendly citizens. Obama's proposals also include an increase in research and tax credit which would benefit the Silicon Valley's technology business. This initiative presents California with an opportunity to revamp their economy. In the past, California's economy boom was due to the innovations in technology throughout the Silicon Valley. This initiative gives the Silicon Valley to repeat history with newer innovations. However, despite all of these positive effects, there are two major areas that are threatened by Obama's proposal. In the agricultural sector, big farms would suffer because their current large government subsidies would decrease their profits. Although these cuts in subsidies pose greater effects in the Midwest, California's nut industry is the most affected. In addition the the cut in subsidies, Obama would cut a program that shares in the costs of promoting exports, which would strongly affect the California nut industry. Obama proposals also poses negative implications for wealthy citizens, as he raises their taxes and cuts their tax deductions due to charitable donations. This proposal applies to California specifically because California is one of the more wealthy states with a higher quality of living. For example, I live in the Bay Area in a medium sized house. However, the money spent for that house could buy a mansion in North Carolina, where I attend college now. I have seen the differences in wealth between these two states, and I can understand how this proposal would affect California more heavily than other states. Overall, Obama's proposals seem positive in response to California's interests, however its effects are unpredictable. California should be happy with the many positive effects outweighing the possible negative effects, especially in areas such as technology which gives California the opportunity to revamp their economy and escape from their current financial crisis. However, the effects of these proposals we will have to wait and see along with whether or not Obama follows through with these proposed initiatives.

Many Immigrants Still Till the Land of Opportunity

As the US economy has been taking a downturn recently, many immigrants are returning to their homelands in search of new opportunities. Many of these immigrants are Hispanic immigrants who work in construction, hotels, and other blue-collar jobs, however, there is one career that is remaining resilient throughout the downturn in economy. Gardening is proving to be one of the few careers for immigrants to maintain a lifestyle, and climb up the social latter. Gardeners have explained that because their employers are not factories, but rather many different, individual families, the loyalty remains and their services are more valued. Instead of being just another set of hands in a factory, these gardeners have established relationships with their employers and have provided them with quality work. Their employers are more unwilling to lay them off because they value their services more and don't seem them as just another number or means for increasing their profit. Also, the fact that many individuals continue to want to maintain their gardens even during an economic recession has been essential in gardeners ability to thrive. Although some gardeners that cater to families with lower economic statuses have experienced a slight downturn in profits, most gardeners have found their employers loyalty unwavering. Over many years, gardening has continually proven to be a desirable career for climbing up the social ladder. Although many of these gardeners are portrayed as exploited workers forced to do a lot of physical and manual labor, the hard work has paid off. Many of these gardeners have been able to provide their children with a good life and good education allowing them to mobilize to the middle class, and no longer be trapped in the life as an immigrant, but rather in the life as an average American. I found this very interesting because it is interesting what jobs are able to survive and thrive during economic recessions or downturns. Sometimes the most undesirable jobs prove to withstand these periods such as teaching, nursing, and gardening. These sectors provide services that Americans continue to need to survive and use throughout their daily life. Last week I interviewed the Leisure and Sports Management Chair for an Exploring Majors class at Elon, and I discovered that surprisingly leisure is another area that does not experience a great downturn also because despite individuals budget constraints, they still find it necessary and important to make time for fun and leisure. Although the leisure sector does experience a slight downfall due to the fact that people can no longer afford season tickets and other expensive items, it will not suffer completely because individuals desires to experience happiness and pleasure will always remain. This article brought up the fact that many immigrants are returning home due to the downturn in economy, which poses as a possible aid or hindrance to the economy as the population decreases and less illegal immigrants are free riding in our economy. This has the possibility of aiding California in regards to their current financial crisis greatly because they are a state full of illegal immigrants that are free riding and causing many problems that has contributed to this financial crisis.