By Teri H.P. Nguyen
Daily Bruin Contributor
If the terrorists attacks of Sept. 11 provided the final tug,
pulling the already-floundering national economy into an economic
mud pit, then questions remain as to whether Los Angeles has also
fallen.
Though many previously thought of Los Angeles as relatively
immune to the current downturn, city officials and small businesses
are concern about the economic condition of the region.
To alleviate economic anxiety, Mayor James Hahn has recently
appointed UCLA alumna Joy Chen to the post of city director of
economic recovery.
“This is a great honor and opportunity to work on the
city’s economy, to stimulate the city’s economy at a
crucial time for the region,” said Chen, who earned a
master’s degree from the UCLA School of Public Policy and
Social Research and an MBA from UCLA’s Anderson Graduate
School of Management, upon being named to the post Nov. 2.
A spokeswoman for Hahn said the mayor appointed Chen for her
knowledge of L.A.’s economic situation and her contributions
as project manager of his Economic Impact Task Force, a project
designed after the attacks to investigate and make recommendations
for stimulating the city’s receding economy.
“I am pleased that the assessments made by the Economic
Task Force proved that Los Angeles’ economy is in a strong
position to quickly rebound from the impacts of the terrorists
attacks,” Hahn said in a statement.
The task force continues to recommend to Hahn three initiatives
for recovery:
The first is to assist L.A.’s impacted workers and
businesses by publicizing relief centers and existing assistance
programs that would allay the uneasiness of displaced workers and
businesses.
The second recommended initiative is to stimulate L.A.’s
economy by expediting already funded, but delayed, infrastructural
projects. City officials hope this will create employment for
recently laid-off individuals.
The third initiative is to market Los Angeles in hopes of
compensating for the lag in tourism ““ a drastically depleted
industry since Sept. 11.
“(Chen’s) sole mission as director of economic
recovery is to make sure that these three recommended initiatives
are implemented,” said mayoral spokeswoman Julie Wong.
Meanwhile, the current economic situation is “not as bad
as we think and will soon pass,” said one top economist with
the Anderson School.
“Southern California is the strongest area of the U.S.
economy,” said Christopher Thornberg, senior economist with
the Anderson forecast.
The unemployment rate in the L.A. region has decreased since
July, according to data compiled by the Bureau of Labor
Statistics.
State and national unemployment rates over the same period of
time have increased rather sharply. According to the BLS, the state
unemployment rate jumped from 5.0 in July to 5.7 in October.
Similarly, the national rate has gone from 4.5 to 5.4.
During the economic downturn, L.A., for the most part, has not
been hit as hard as Northern California cities like San Jose, the
starting point of many “dot.com” businesses: The
unemployment rate in San Jose jumped from 3.3 in July to 5.9 in
October.
Thornberg, who was also a member of the Economic Task Force,
brushed off reports that the impact of Sept. 11 pulled the economy,
specifically L.A., into the mud. The economy was already unstable
before the attacks, he said, adding that he doesn’t believe
the task force’s initiatives will impact the economy
significantly, if at all.
“The mayor wants to make businesses feel like they are
being heard. Osama bin Laden and the Sept. 11 attacks have become
the government’s “˜excuse du jour,'”
Thornberg said.
But consumer confidence is still low, according to city
officials, and Hahn is determined to boost consumer morale and get
small businesses back on their feet.
The mayor has participated in the Market L.A. initiative by
making public appearances throughout the city, dining out and
shopping ““ all in hopes of boosting consumer confidence in
L.A.’s businesses. He also plans to increase air services
between AeroMexico and Ontario Airport to extend profits to the
tourism industry.
Chen will join the mayor in efforts to market the city. Her
latest project, “Dine L.A.,” is a joint cooperative
with restaurants to offer 20 percent discounts every Tuesday and
Thursday.
One of Chen’s mentors from her UCLA days believe she is
well-prepared for the job.
“(Chen) was a student in my course on Public Resource
Allocation in Fall 1995, and she earned what may have been the
first A+ I have ever given in that course,” said Donald
Shoup, chair of the Department of Urban Planning at UCLA.