We are pleased to present the Inaugural Issue of Inland Empire Outlook—a newsletter analyzing economic and political trends shaping California’s fastest growing region.

The Inland Empire, the combination of San Bernardino and Riverside Counties, has become highly consequential.  With over 4.1 million residents, it is the third largest metropolitan area in California and the 14th largest in the United States.  Remarkably, the Inland Empire now has a larger population than 24 states.  In addition, in recent decades, the region has emerged as an important center of trade and commerce.  But too often the Inland Empire has been overlooked by economic and political analysts. To fill this void, the Lowe Institute of Political Economy and the Rose Institute of State and Local Government—two prominent research institutes at Claremont McKenna College—have joined forces to publish Inland Empire Outlook.  This unique partnership will provide business and government leaders timely and sophisticated analysis of political and economic developments in this pivotal region.

In many ways, the launching of Inland Empire Outlook could not come at a more important time.  While the U.S. economy may be emerging from the “Great Recession”—the most severe economic downturn since the Great Depression—it is unlikely that the Inland Empire’s economy has yet reached bottom. To underscore this unpleasant reality, we begin this issue with a candid look at the region’s macroeconomic picture, which is more grim than commonly suggested.  We find that the Inland Empire’s population gains have partially obscured the magnitude of the region’s losses in employment and production. And while housing and trade appear to be stabilizing, they continue to be handicapped by the region’s cloudy economic outlook.

Local leaders need to think seriously about how to help the region emerge from this economic crisis and build a foundation for future economic development. We identify a good model in the City of Ontario, where innovative business and political leaders have pursued a strategy of matching population growth with economic development. Moreover, we note that, due to its rapid population growth, the Inland Empire has the opportunity to increase its political influence. In 2010 the region not only will witness interesting Congressional races in current districts, but also stands to gain representation and federal support if it achieves a full count in the upcoming Census.

At this unique moment of crisis and opportunity, we hope you will find Inland Empire Outlook a useful guide.

—The Editors