Former Gov. Buddy Roemer said the Gulf South has the best economic outlook in the nation over the next 25 years. He added, Southwest Louisiana is “at the center of the best part of the country.”
Roemer, 65, voiced this optimism before an audience, Feb. 13, at the Republican Roundtable Meeting in Lake Charles.
First, he cited a number of disturbing facts, including:
- Of 26,000 homes, all but five were completely flooded after Hurricane Katrina ripped through Louisiana;
- The country is experiencing the longest recession since the Great Depression;
- More Americans lost their jobs in the last two months than in the preceding seven years;
- And, 3 million Americans got mortgages from Fannie Mae and Freddie Mac, but didn't make their first month's mortgage payment.
“Despite all of these facts, I am optimistic about Louisiana,” he said.
In a wide-ranging speech at Reeves Uptown Catering, Roemer discussed banking, politics and the need for optimistic leadership.
Banking
Roemer, who is the president and chief executive officer of Business First, announced the opening of his business in Lake Charles – Business First Bank.
He said the Business First Southwest Louisiana banking center will open Feb. 26, at 728 Ryan St.
It will be the fifth location in the state for his business-oriented bank. Business First Bank, part of the Shaw Group Inc., has locations also in Baton Rouge, Shreveport, Mandeville and Lafayette.
“I'm so happy to be in Lake Charles,” he said. “Calcasieu Parish overwhelmingly for me in every election.”
Roemer was elected governor serving from 1988 to 1992. Prior to becoming governor, he served in the U.S. Congress – elected in 1980 and re-elected three times without opposition.
He described himself as “an economist by trade” with a bachelor's degree in government and economics from Harvard University and a master's degree in business and finance from Harvard Business School.
In Congress, Roemer spoke about serving on the House Banking Committee with Barney Frank, the Massachusetts Democrat tied to the Fannie Mae and Freddie Mac fiasco.
Roemer said it was Frank who kept insisting that Fannie Mae and Freddie Mac were in good shape even when the Bush administration proposed tighter regulation of the two companies.
“Every night I'd see on the television, Barney Frank talking about banking,” he said. “George W. Bush should have put a lasso on him.”
As an economist, Roemer said the country can be divided into five major economic regions: The West Coast, Midwest, Northeast, Atlantic Coast and Gulf South.
“Louisiana is located in the heart of the best region of America,” he said.
He said Louisiana's at the heart of the Gulf South Region, which is abundant in water and energy – especially natural gas.
Other regions are not as fortunate, according to Roemer.
He said the economic outlook on both the West Coast isn't good with its large population and lack of water. The Midwest isn't doing any better, he added.
“Have you been to Detroit, lately?” he asked. “It's empty.”
Also, manufacturing jobs in the Northeast have disappeared. As a result, people in that region of the country have given up even looking for jobs.
“The Atlantic Coast has one advantage – they are better educated,” Roemer said. “The region is clearly superior to ours in that way.”
He said this is an area where Louisiana can improve and come out ahead.
“The region is undervalued and that translates into opportunity,” Roemer said.
Housing prices have remained steady and unemployment in Louisiana is the lowest in the nation, he noted.
Politics
“Leadership in Louisiana is going forward,” Roemer said. “The last three governors – Foster, Blanco, and Jindal – have brought something new and unique to Louisiana.”
During the Q and A portion of the program, he was asked if California Gov. Arnold Schwarzenegger had called seeking advice.
“No, thank God,” Roemer said. “Louisiana's current $2 billion deficit is not far off from what I faced when I became governor.”
Roemer entered the governor's office facing a $1.3 billion deficit in the state budget.
After winning the governorship, he balanced the state budget for three years, increased teacher pay, strengthened the department of environmental quality to enforce environmental laws, and toughened the laws on campaign finance.
Despite his accomplishments, Roemer finished behind former Gov. Edwin Edwards and former Ku Klux Klansman David Duke in the 1991 gubernatorial primary.
“Let me tell you what kind of politician I am - I lost to two convicts,” he joked.
Roemer admitted Gov. Bobby Jindal “called twice this past year.” However, the former governor declined to discuss what was said. He said it “was a private conversation.”
Admittedly, Roemer worked with U.S. Senator John McCain from Arizona as a key advisor. Like McCain, Roemer voiced opposition to the recent stimulus bill.
“If the president keeps this up, there will be a Republican president in the White House in the next four years,” Roemer said to thunderous applause.
The bank Roemer started in Louisiana represents a $50 million investment in the economy. He said they were the first to say no thanks to the government's bank bail out money.
Optimistic leadership
Roemer said political leadership has improved in the state because there is now real competition between Republicans and Democrats.
“We're a better state than we were 20 years ago – the reason is the Republican Party,” he said. “Competition is the thing – the exchange of ideas. With the exchange of ideas, we get better, and better and better.”
Roemer said when he was growing up, Louisiana was a one party state. He said that created an environment which lead to corruption in government.
In 1991, Roemer switched to the Republican Party – the only sitting governor to switch parties while in office.
He praised President Abraham Lincoln's stance on “majority rules” saying “that's how you build a nation.” Because of this, he urged everyone to respect the office of president.
“You do not have the option to opt out,” he said.
Roemer – a gifted orator – praised President Barack Obama's ability to communicate and inspire young people. He said the country needs optimistic leadership.
He said he wants to see the president succeed, because he wants America to succeed.
“I'm hoping Obama can do it,” he said. “My prayer is that the president's leadership stands up. We need it now.”
Roemer was widely mocked after a story appeared in the press explaining that he had staffers wear rubber bands on their wrists to snap whenever they had negative thoughts. Nevertheless, the former governor continues to promote optimism.
“I believe in the psychology of success,” he said. “Of course at the end of the day, you've got to do something. But, we've got to start talking and acting successfully if we're going to bring our children home to Louisiana.”
