Economic concerns come local

The state of the economy isn't just affecting those on Wall Street and Capitol Hill. The Chapel Hill community is also feeling the squeeze.

Many factors — gas prices drops in the stock market and subprime lending among others — are just a fraction of a downward spiral toward a recession" which Heidi Shierholz of the Economic Policy Institute said is afoot.

""When gas prices go up" it directly erodes living conditions of the middle to lower income class invoking mass insecurity among consumers Shierholz said.

It's not clear how we'll be affected by the crisis. We've never seen anything like this in our lifetimes" only read about it.""

UNC social psychology professor Melanie Green predicted that Chapel Hill residents will respond to the crisis similarly to the rest of the country.

""A lot of what's happened is out of people's control"" and certainly this alone could lead to feelings of helplessness or anxiety.""

Local businesses and students are already apprehensive and anticipating the need to cut back.

Phyllis Maultsby" who owns Light Years jewelry store on Franklin Street" said sales have not been hindered greatly so far.

""We saw our biggest slowdown in revenue when gas went over $4 a gallon."" Maultsby said.

As for social psyche"" she said she feels the news is at fault for any public panic.

""The news is so negative that it's scary for people. It's all about the bad news" and thus it perpetuates itself" she said.

Nearby on Rosemary Street, Expressions tobacco store owner John Long said he wasn't sure if anyone could solve the fiasco.

The less they spend" the less we make the less taxes we pay the more taxes fall off the less they can spend next time" Long said.

He said that although Expressions' sales are not as high as he'd like, they haven't completely flat-lined.

Long's co-worker Drew Kirk said that his parents work in trucking and that gas prices have caused them to raise their rates. Weekly sales have dropped by 94 percent.

It brings us back to the days of the Depression" Kirk said.

Students around campus have been affected in different ways by the crisis.

I've been forced to keep an eye on buying drinks at games or concert tickets since prices shot up said first-year Adam Buckholz.

Junior Maggie West said she's also cutting corners.

I grocery shop more and eat out less. I only drive when I absolutely need to and I make sure it's with other people she said.

Sophomore Anna Feagan said her biggest concern is what happens Nov. 4.

The best candidate in times like these is one who looks out for the middle class Feagan said.

UNC finance professor Robert Connolly rejects the idea that the economy has turned sour overnight.

The genesis of the problems now goes a long way back and belongs to both sides of Capitol Hill" he said.

John Quinterno, research associate with the N.C. Justice Center, said bolstering economic activity will prevent the crisis from snowballing.

That may mean injecting money into the economy"" he said, referencing the financial bailout plan making its way through both sides of Congress.

The question that no one can come to a consensus on is, Where do people go now?""

Shierholz and Quinterno said the government should go into deficit spending; Maultsby and Feagan said people should go to the polls; and Long said anyone left should go to ‘Expressions" for the 75 percent off clearance sale.



Contact the State & National Editor at stntdesk@unc.edu.