Life during wartime.

The sustained chaos that reigns in Iraq and the Israeli-Hezbollah conflict in Southern Lebanon may seem to have produced little if any effect here in Los Angeles. In the future, however, the conflicts could lead to higher oil prices, and possibly effects on travel and imports and exports. So the Business Journal asks:

Are you worried about the wars affecting the Southern California economy?

Polina Chapiro

Tax Partner

Green Hasson & Janks LLP 

It will take a while before we feel any significant impact from the war. But, because of the war, there is a tendency to feel more reserved about making any significant moves such as investing outside of the United States, or even within the Unites States, because people are concerned about rising gas prices. If these conflicts continue to expand, they will begin to have more impact on our economy because the region in question has a lot of oil and we use a lot of oil.

Todd Osborne

Director of Aviation

HOK

The war has a huge impact on our society and is becoming a terrible waste of our young men and women. We've lost track of our purpose, so there is a psychological drain. But I don't feel any direct connection the war is having on the economy as Americans haven't had to sacrifice much to date. But sooner or later the bill is going to come due and it's going to take a long time to pay this one off.

Mark Hutchlns

Managing Partner

KPMG LLP

The war does have an impact on our economy. And it impacts Los Angeles County more than other areas because we have such a diverse community. No matter what the issue is, we have people on all sides of it. Basically, the war impacts consumer and business confidence. It creates a sense of uncertainty and uneasiness and reduces people's feel-good factor. If this carries on for several more years, it will wear people down. But I think that the impact will lessen over time because people will become numb to it.

Tom Chamberlin

Vice President, SMS Marketing

Waat Media

I save my worry for the troops and everyone involved in the war, not the economy. I actually think that the war will bring economic opportunities in some areas like alternative energy. When people decide they want to pull the plug on oil, the winners will be entrepreneurs and researchers who are exploring alternative energy sources. And they are likely to be located in Southern California.

Ruth Kahn

Partner

Steptoe & Johnson LLP

A lot of people in Los Angeles are choosing to vacation locally instead of going abroad and many other people outside of Los Angeles are Kahn coming here. This helps local businesses like restaurants and theme parks. In fact, a colleague of mine who came from the East Coast told me that a major rental car company in LAX ran out of cars. That signifies that a lot of people are visiting Los Angeles. But over the long run, the war will have a negative impact. As people grow more fearful as to what the future holds, they will go into conservation mode rather than spending mode and this will hurt the economy.

Kelly Qua

Research Director

RampRate Inc.

Because Southern California is an oil dependent region, depending on the outcome of the wars and how long they last, they have, the potential to have a very strong impact on business in the region. If the wars are dragged out and we continue to see issues with the oil supply, businesses will have to find new coping strategies.