Following up on my Huffington Post article from May, "Why I'm Bullish on LA," I feel the City of Los Angeles will be one of the big winners of the 2010 midterm elections.
A return to more economic certainty could be the most positive result.
With trillions of dollars waiting on the sidelines, it's possible that business will now feel more inclined to pour some of its cash back into our national and local economies by investing and hiring carefully.
What's at stake? More consumer confidence, more consumer-spending, and most importantly, more hiring by companies to fill the resulting demand.
Los Angeles could be one of the biggest beneficiaries of such a change due to its size and critical mass of consumer spending.
Los Angeles has a focus now on "taking care of its own".
The new ShopLA initiative, for example, is rapidly gaining momentum to help drive local consumers to retailers within the city's boundaries. ShopLA encourages the 4.4 million Angelenos residents to do their shopping, dining and other spending within Los Angeles city limits.
Why is that important? Sales tax constitutes the fifth largest source of general fund revenue for the City of Los Angeles and is projected to be $292 million for this fiscal year. For every ten dollars in sales tax generated within L.A., the city receives a buck that goes towards public safety, libraries, animal shelters, parks and recreation programs.
ShopLA is now expanding to other large retail centers, automotive dealers and even business-to-business purchasing in Los Angeles with paid advertising, social media and a website (www.shoplacity.com).
According to Dealerscope Magazine, retail sales in the U.S. rose 1.2 percent in October, the largest gain in seven months and a number above most every official projection, according to data released by the U.S. Commerce Department. October also marked the fourth straight month of such gains. The news sent retail stocks rising as the holiday shopping season approaches.
Los Angeles is on the verge of getting an NFL franchise once again. Work and discussions going on now could see an NFL team playing in L.A. within two years. Add that national powerhouse potential to the already popular Lakers, Clippers, and Dodgers games, and you're talking about millions of dollars and fans funneling into Los Angeles.
L.A. has weathered one of the worst financial storms to ever buffet the city. Following the results of the midterm elections, it's possible now Los Angeles will come out renewed, refreshed and reborn with a purring economic engine.