News about economy is still a downer

I’ve been hearing it more and more as I’m out in the community.

“The media isn’t helping.”

What we aren’t helping at is to pull the country out of recession.

I understand the feeling. A business owner, struggling to keep employees working and laying awake worrying about the future wants some kind of lifeline to grab onto. People worried about their jobs and struggling with their own finances could use something to cheer.

I don’t want to read or hear any more downer news about the economy and I’m in the business.

There is precious little to give anyone warm fuzzies about the near future, whether they’re watching CNN or reading The Free Press.

Sure, there are examples of thriving businesses and plenty more that are holding their own. They’re stories we and others should and have covered. But giving a false portrayal of overall conditions isn’t the business we’re in and wouldn’t do anyone any good anyway.

I talked to a man recently who has a decent public-sector job. He noted that many people are unaffected by any given recession. “If you aren’t laid off and no one in your family is, you might not notice much.”

But he remembers the recession of the early ’80s well. He lost his executive job, just after moving and buying a house. He remembers the many years of varied jobs to rebuild his life.

“It was very bad for a lot of people for a long time. This (recessions) is deeper.”

A woman called the newsroom this week, wondering why we don’t write more about how good the economy is here. “I don’t think we’re in a recession here. People haven’t even been laid off here.”

It’s true the Mankato area is taking less of a beating than many parts of the country. There is a fairly diverse economy here, helped by the sizable health care industry and public sector jobs, which are slower to be hit by recession.

But the recession is clearly visible here. There have been many layoffs, it’s just hard to know how many. Most of the layoffs have come in smaller amounts — a couple here, a dozen there — at a wide variety of businesses, including at this newspaper. There have been many layoffs at large companies such as Taylor Corp.

Car dealerships, restaurants and stores are closing. Foreclosure notices fill a page or more in the newspaper most days. Slow sales and cutbacks are common at businesses.

We all want some good news. There is a little here and there, but not enough.

We all know what needs to happen to get the economy going. People need to start buying things again.

So, who wants to go first?

I’d like to help, but I have to pay off a few more bills and then I should to stock up six months or so of cash.

I suppose, if you could convince all the media in the nation to put positive spins on all the economic news, we could trick people into using their credit cards and buying stuff. But that’s what got us where we are.

The economy is fundamentally resetting itself, shedding a couple of decades of unsustainable borrowing and spending, and unrealistic earnings and home value increases. Like everyone else, I hope what’s being done will work. I hope it doesn’t last as long as I fear. I wish the stories in the media were that the corner has been turned and things are getting better quickly.

That’s just not the story yet.



Tim Krohn is a Free Press staff writer. He can be contacted at 344-6383 or by e-mail at tkrohn@mankatofreepress.com.