The Nation Will Toss Off Recession By Late 2010, Says California Gubernatorial Candidate Tom Campbell

California gubernatorial candidate Thomas Campbell said he is optimistic the nation will come out of the current recession by the end of next year.

But California is in danger of lagging the rest of the country in the recovery, the Republican candidate and former five-term Representative told a Silicon Valley crowd.

During a stump speech at the Open Forum ’09 conference late Saturday, Campbell said the typical recession in the United States lasts 2 years and 10 months.

There is “every reason (to think) we will come out on this schedule or faster,” said Campbell, who is seeking his party’s nomination to replace present Governor Arnold Schwarzenegger. Schwarzenegger is being forced from office by term limits. “We have the most accommodating monetary policy in history.”

Campbell cited several reasons in addition to monetary policy for his economic forecast. Worker productivity has held up during the downturn and gas prices remain lower than when the recession began, he said.

Yet, the nation may be sowing the seeds of a new bout of inflation by pouring as much money as it is into the economy, he said.

In California, the state’s lingering budget crisis may slow its recovery, he added. He went on to say he favors establishing a state rainy-day account to be funded in good times and tapped during financial crises.

There is nothing about California that can’t be fixed, he said referring to the budget difficulties.