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Will Colo. economy turn purple state red or blue?
Saturday - 7/21/2012, 11:46am EDT
By SHARON COHEN
AP National Writer
PUEBLO, Colo. (AP) - In this working-class city where steel was the economic muscle of the past and where harnessing the wind offers promise for the future, Cris Gillispie has seen jobs come and go. He's watched the ranks of unemployed grow and the anxiety index rise in the last few years, but he has some advice: Wait.
"If I were going to say anything to the American people, it's be patient," says the 40-year-old firefighter and union activist. "People thought the president could wave a magic wand and the economy would be all better. But we have to deal with reality and ... it's going to take time to get us out of this hole."
About a mile away, Rob Leverington says the problem is not the timetable, but the president's policies. The health care bill, the auto bailout, the stimulus? All mistakes, he says. "When the government gets involved, it extends or prolongs the suffering," the civil engineer declares. "We shouldn't look for the government to take care of us. That's what the Communists were doing."
Colorado, a state split by the Continental Divide, is also emblematic of the national divide. It's a crucial state for President Barack Obama and Mitt Romney, both of whom are saturating the airwaves, parachuting in and dispatching surrogates to snag nine all-important electoral votes. The debate here over the government's role in the economy mirrors the polarized attitudes across the country.
Colorado's recovery reflects the nation, too. A "Swiss cheese economy," one official dubs it. Some industries and cities are rebounding; others still struggle.
In Pueblo, where the jobless rate tends to be higher than normal even during prosperity, unemployment jumped to 12.2 percent in June, the highest among major cities. Hard times are not new in this heavily Hispanic community. The steel decline of the `80s left the city reeling, but it rebounded with new industries; a fairly recent entry was a Danish wind turbine manufacturer. "People here are resilient," says councilman Chris Nicoll.
But which economy will Colorado voters judge this fall: the improving one or the one lagging behind? The answer to that question will help determine whether this purple state turns blue or red in November _ and whether the president gets an extended lease on the White House.
Colorado is sometimes reduced to a postcard image of mountains, ski resorts and cattle ranches. It has tourism and agriculture, for sure. But it's also home to vast energy resources (gas, oil and coal), aerospace, manufacturing and health care. And it has a large military and government presence, including Fort Carson, the Air Force Academy, the U.S. Northern Command, the National Center for Atmospheric Research, the National Renewable Energy Laboratory and more.
The state endured a far-reaching recession and a slow, uneven recovery. Tourism, for instance, posted a record visitor year in 2011, but there are fears the recent wildfires may scare folks away. Agricultural land values have remained stable in some places, doubled in others. Crop prices have soared, though a prolonged drought could be bruising. Construction has stopped hemorrhaging jobs, but it's a long climb back. An oil and gas boom has brought new dollars and jobs to the northeast part of Colorado, but natural gas producers grapple with low prices on the Western Slope.
Colorado, according to state officials, has recovered almost half _ 75,200 of 151,600 jobs_ lost in the recession. The June unemployment rate of 8.2 percent marks the first time since the recession began that the state level hasn't been lower than the national average (the same as Colorado's last month). This also is the third straight month of increases; the latest rise is attributed to more people resuming job searches.
Whether this stutter-step economy brings hope or despair depends on your point of view.
"There are some people who think the president had no chance to solve it (the recession) because of the deep hole created by somebody else," says Richard Wobbekind, associate dean at the Leeds School of Business at the University of Colorado-Boulder. "Others say in the last 3 1/2 years he hasn't fulfilled his promise, he's burying us. But the vast majority of people are sort of hanging out in the middle. They see this as an unusual event. If they cast blame, they do it more on the financial system than anything else."
Obama's popularity here is a matter of geography.
"Where you stand depends on where you sit in Colorado," says Martin Shields, an economist at Colorado State University. "If you give a talk in Boulder, everyone thinks he's great. If you give a talk in Colorado Springs, everyone thinks he's awful."