Post Cold War Frontiers: Defense Downsizing and Conversion in Los Angeles
January 1, 1996 / By Michael Oden-Rutgers University Project on Regional and Industrial Economics, Ann Markusen-Rutgers University Project on Regional and Industrial Economics, Daniel Flaming and Mark Drayse / Economic Roundtable
This study examines how firms, workers, and regional economic development institution are dealing with the severe effects of defense downsizing in the Los Angeles region. Between 1988 and 1994 the Los Angeles region lost 127,000 jobs in defense-related industries, including aircraft, missiles, instruments, and electronics. The long economic slump set off by defense cuts has incited a major debate between the advocates of regional institution building and proactive economic development and those arguing for the laissez-faire approach of reducing taxes, wages, and environmental costs.