Posted on 09/18/2006 5:32:03 AM PDT by Hydroshock
FALMOUTH, Ky. - Used boots fetch $3 and old salt-and-pepper shakers bring in a buck at a makeshift flea market along Highway 27, presumably not what President Bush and Republicans have in mind when they herald a vibrant economy.
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Times are "very good for the rich and very, very bad for the poor" who "can't afford to live," laments Larry Mitchell, 43, a now-and-then merchant peddling his wares recently in a submarine sandwich shop parking lot. He says the middle class is "having a hard time."
In the Ohio River Valley, where people decry high gas prices, stagnant wages, lost jobs and factory closures, many don't buy the claim that the economy is humming along.
Seven weeks before the midterm elections, the gulf between Bush's perceptions and that of voters form the political backdrop across the country as well as in a region with several competitive House races. This area typically gets left out of national boom times and usually feels the pinch more than others during slowdowns.
Here and elsewhere differing views on the economy could hurt the GOP's efforts to retain control of the House and Senate this fall, and give voters reason to put Democrats in charge instead.
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In Washington, the economist in chief encourages GOP candidates to embrace the economy as a stellar accomplishment. "I'd say 'Look at what the economy has done. It's strong. We've created a lot of jobs,'" Bush said recently.
So, Republicans hit the campaign trial with a rallying cry that 5.7 million jobs have been created since August 2003. They cast Democrats as tax-raisers who would bring economic gloom and doom.
"President Bush and the Republicans are out of touch with Americans who are living paycheck to paycheck and are struggling to make ends meet," House Minority Leader Nancy Pelosi, D-Calif., counters.
Her rank-and-file portrays an economy under Republicans that leaves behind the poor and hinders the middle class. Democrats also complain about a soaring federal deficit and Bush's tax cuts "for the wealthy" during wartime.
Nationally, the economy grew strongly at the beginning of this year but it has slowed, reflecting the toll of high energy prices and two-plus years of interest-rate pain from the Federal Reserve. Gasoline and other energy prices now are falling and the Fed is expected to stay on the sidelines for a while after halting its rate-raising campaign last month.
Economic growth through the rest of the year is expected to stay relatively subdued. However, most economists don't believe the economy is in danger of falling into recession.
Hiring, which has been uneven this year, picked up in August, pulling the nation's unemployment rate down to 4.7 percent. At the same time, wages are rising. However, inflation has taken a bite out of workers' paychecks and put the squeeze on some family budgets.
The mixed picture could have consequences for Republicans who control Congress.
"They could very well be held accountable on the economic front," said Robert Shapiro, a public opinion expert at Columbia University in New York.
A recent Associated Press-Ipsos poll found that Democrats have a 22-point edge among likely voters who care deeply about the economy, with 57 percent saying they're more likely to vote for Democrats and 35 percent indicating they probably would lean Republican.
It's also possible that the country's economic vitality may not be much — if any — consequence to the political party in power.
In the poll, more likely voters ranked the situation in Iraq and terrorism as "extremely important" to them personally than the economy. And, an AP analysis found that while most likely voters rated it an important issue, the economy isn't driving their vote in November.
A dozen years ago, when Republicans came into power in Congress, health care and crime were more important to voters than the economy. Exit polls from 1994 show that 22 percent of voters picked the economy as their most important issue, compared to health care, 30 percent, and crime, 25 percent.
This campaign season, Bush has been championing his economic policies but public sentiment over his job performance on the economy remains sour.
Only 40 percent of likely voters in an AP-Ipsos poll conducted last week said they approve of how he's handled the economy.
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Economic strength is a perpetual concern in the factory-and-farmland Ohio River Valley that mainly encompasses parts of West Virginia, Ohio, Kentucky and Indiana, four states that all saw their unemployment rates rise from June to July.
Kentucky's was 6.3 percent, Ohio's was 5.8 percent, Indiana's came in at 5.7 percent and West Virginia's at 5.4 percent — all higher than the national average.
Voters in these states and others wince at suggestions of a robust economy.
"It's just scary," said June Meredith, 49, a self-employed caterer, as she passed along talk of business closures at the Cake Ladies Dream Shoppe along a not-quite-bustling road in New Albany, Ind.
In this region full of commuters, voters bemoan the "trickle down" effect of high gas prices — even though they had dipped from $3 a gallon to $2.61 in Lexington, Ky., one recent week.
"Everything from a loaf of bread to a pair of shoes," seems to cost more, said Ronald Barrett, 70, a Democrat supervising a group doing community service on Scottsburg's quaint town square in Indiana.
At a nearby diner, waitress Jeanine Gordon, 32, who makes the minimum wage, mused about her latest trouble — her van has been in the shop for a week because she and her husband can't afford to fix it.
"This is the least I've ever made in my entire life," the Republican and mother of three said. "The gas prices went up and the tips went down."
In Butler, Ky., business could be better at Thaxton's Canoe Trails and Paddler's Inn, where a six-mile trip on the Licking River costs $15.95 per person and a one-night "cozy cabin" stay for two goes for $59.99.
"People don't want to spend money, and the ones that do want to spend money do it sparingly," said Glen Thaxton, 25, a ponytailed Republican who voted for Democrat John Kerry in 2004. He took over the family business recently, and says he hopes to boost business.
To the south, in New Castle, Ky., Debbie Brewer, 50 and a deli owner, rattled off her biggest complaints about the economy as she counted change while closing her register for the night.
"We'll never see 99 cents again," the Republican said of gas prices. "Everything's jumping — your gas, your food and everything — but your wages don't go up."
After a moment, she cracked a smile and chuckled: "I sound like a Democrat!"
What?!??
The media hates Bush and will dig for dirt as hard as they can??
Unfortunately for them, the unemployment rate, interest rates, tax rates, fuel prices, etc are all going against the anti-crats.
Gas prices are killing the Dems
I will say this in my families budget we have had to tighten it to meet the rising cost over the past year or so. Raise have not kept up for us.
I have to admit that falling gas prices are nice, now if my taxes (local adn state) would stop shooting through the roof.
I have questions on whether the economy is going that well, I have not seen much real wage growth.
I am rich? I gotta call the wife!!!
I was there in 1976 when Jimmy Carter took our economy and drove it into the ground. Try 9% unemployment, 18% interest rates, gas lines (odd and even) and inflation at around 12%.
After seeing a truly horrible economy, I guess I can tell a good one when I see it.
They went to a weak spot in the nation to gather this story. They could have done it in California 3 years ago after Gray Davis drove the state into a funk. Some issues are local.
These are places where the economy ALWAYS sucks-Appalachia. No politician benefits from this.
The health of the economy is based on a myriad of factors, not simply wage growth.
I would like to see what job skills and education a "then-and-now-merchant" has on his resume that would convince me to hire him. Although I have never been interviewed because I don't fit the people that they need to make an article like this, I am middle class and both I and my wife have the best jobs we have ever had, and are paying off our credit cards. I had steak last night. (Granted it was "dented" steak with a near expiration date, but it was better steak than I usually buy.) We're living on a golf course, but we are light years ahead of this sad sack, both in attitude and finances. And in my experience, the second flows out of the first.
"We'll never see 99 cents again," the Republican said of gas prices. "Everything's jumping — your gas, your food and everything — but your wages don't go up."
Mine have. And if previous administrations had stopped terror and drilled our own resources, prices wouldn't be. The cost of "food and everything" comes out of the cost to grow and transport stuff, mam. Drill ANWR, you "Republican".
And you will be sure to post them. How you must love these negative stories.
I read somewhere that if you take household incomes and divide into 5 segements, it's the upper and lower that vote majority Democrat. The middle three vote Republican.
I would like to see what job skills and education a "then-and-now-merchant" has on his resume that would convince me to hire him. Although I have never been interviewed because I don't fit the people that they need to make an article like this, I am middle class and both I and my wife have the best jobs we have ever had, and are paying off our credit cards. I had steak last night. (Granted it was "dented" steak with a near expiration date, but it was better steak than I usually buy.) We're living on a golf course, but we are light years ahead of this sad sack, both in attitude and finances. And in my experience, the second flows out of the first.
"We'll never see 99 cents again," the Republican said of gas prices. "Everything's jumping — your gas, your food and everything — but your wages don't go up."
Mine have. And if previous administrations had stopped terror and drilled our own resources, prices wouldn't be. The cost of "food and everything" comes out of the cost to grow and transport stuff, mam. Drill ANWR, you "Republican".
We have fat poor people.
You'd have to have spent time in another country to appreciate the logical disconnect there. Americans aren't equal in wealth distrubution, but we're equally spoiled.
At this stage wage growth is a majopr factor in the health of my economy. ;)
Personally, I turned down three job offers which would have paid $20k more than what I make right now, because the companies donate to abortion clinics. In general, Conservatives tend to work more "honest jobs", manual labor, and have larger families etc, live paycheck to paycheck. If you're speaking about your personal wages, then maybe its cause you picked an honest line of work like the rest of us?
From the same people who will bitch about FoxNews being biased.
As the Dems try to gin up bad news, yes, you are right.
bump
They had to travel a long way from their NY offices to find people who say the economy sucks!
Funny how the moderators on this board allow the DU types to post without restriction.
I found that conservative thought gets shut down over there within minutes and then the mods ban your IP from getting back in.
Good for you, I just have not seen it. And I am a believe it when I see it kind of guy.
(I have questions on whether the economy is going that well, I have not seen much real wage growth.)
That's because inflation is low. The real growth of wages has been small but real. Think about how much your money can buy right now. Thanks to Walmart and other improvement in productivity, things are cheap. Also people are now wealthier due to the boom in the real estate market.
I remember only about 20 years ago a car used to cost way more as a percentage of salary. Now you still can get a solid reliable car for about $16K.
The only thing that's becoming prohibitively expensive is education. That's the fault of government subsidies
With The democrats when all else fails its back to the old tried and true Class warfare
I'm not sure this is a political issue at heart. Yes, it may influence votes, but the root causes aren't related to politics.
What steps have you taken to increase your wage growth? Have you job shopped, taken nigfht classes, worked extra hours, thought about relocating,etc? I got a 22% raise last year.
You seem to incessantly talk down the economy, and this personal anecdotal evidence is silly as a sign the economy sucks. Come to where I am. We can't get enough legal people to do the work, and we have to go 300+ miles away to rent a backhoe, because they are all working.
Looks like we're in for a fictional recession.
Back in the 70s I got out of the Navy and had absolutely nothing to my name but a 30 year old pickup and some clothes.
I got into the RV business which crashed when gas prices went through the roof.
Then, I worked full time as a mechanical assembler and went to school full time to get an engineering degree. The GI Bill and a lot of hard work made a huge difference in my life.
Most people don't put in the time and yet they will complain that life is too hard. They should try 80 hours a week for 4-5 years in the right direction and see where it lands them.
You back posting doom-and-gloom articles again?
Sorry, I seem to have misplaced my "Chicken Little" graphic, or I would post it here.
And if gas dips beneath $2 per gallon it won't matter a bit.
But is it really the fault of the Republicans? Or any politician for that matter?
Get another job, get a third job. Get rid of your costly internet access. Stop whining about the housing market.
Or any politician for that matter?
The guys who set the wages in China maybe...
Some professions are inherently poor moneymakers. This guy should rethink his career options.
"Full employment" is impossible.
Wow, tough crowd, huh?
Oh the horrors!!!!!!!!!! 4 states have unemployment rates higher than the national average. Who would think. And since when is 5.4-6.3% unemployment considered high? Answer, since Bush got into office.
I lived in the rural Ohio River Valley for a while back in the rah rah Clinton years. It was no better then. This is Appalachia. It's always been poor and it always will be until the people change their mindset.
By and large, higher education isn't valued or considered attainable--getting on "permanent" at the mill is most peoples' greatest aspiration. "Permanent" meaning getting into the union. But the unions have been pricing people out of their jobs for years, so there are fewer and fewer union jobs.
Until these people get out of the mindset that the union will take care of them, and failing that, the government will take care of them, many will be poor. Who is president has absolutely nothing to do with it.
I do agree that we will see more articles like this as the election appraches. And the MSM, of course, will act like poverty in Appalachia is something new since January 2001.
Hydroshock is like willie green without the intelligence and trains.
You mean this mindset?
"the yooon-yun says so"
"My daddy was a Democrat, so I am too, even though I'm pro-gun, anti-abortion, anti gay marriage, and pro-family"
"Whut educashun?
What???? Gas prices are $2.16 at the BP in Louisville, KY according to Gasbuddy.com. The Ohio River Valley contains most of Ohio, Kentucky, W VA, Indiana and Illinois. If you look at gasbuddy.com homepage, you see Ohio, Kentucky, and Indiana in the top 10 cheapest states for gas.
What a sack of lies and propaganda.
Come on! Don't you want the economy to collapse?/sarcasm off
lol. This is their idea of a fair and balanced survey of opinion. lol.
Seems? ....Reality will NOT be allowed to intrude the "sky is falling" lock on the democrat mind....
"At a nearby diner, waitress Jeanine Gordon, 32, who makes the minimum wage, mused about her latest trouble —"
I think this is misleading. Servers who work for tips are paid a meager wage by their employers. It is different than the 'minimum wage'. The bulk of their income is from tips. Also, this is nothing new, raises haven't kept up with prices since the '70s as far as I remember. I am lucky to get a one or two percent raise now and then.
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