When an economy turns,
remember our strengths

By Mike Fak

[JAN. 29, 2001]  In a statement that was touted as revelation, Federal Reserve Chairman Alan Greenspan stated that it looks like the economy has fallen to zero growth. I am glad Greenspan finally started reading newspapers or watching television, because the signs of an economy grinding to a halt have been rearing their ugly heads for months, if not the past year. The harbingers of economic trouble have been showing themselves in the headlines all across America.

The Nasdaq, only an economic skeleton of what it was a year ago, shows that faith in high-tech stocks has eroded to the point of many companies falling off the exchange and folding their tent. A huge retailer like Montgomery Ward going out of business after a century tells us the market is either diluted or too weak to sustain all the players interested in the major retailer game. Lucent Technologies dropping upwards of 10,000 jobs shows that even successful businesses are finding the need to cut employees. Motorola closes a five-year-old plant in Illinois and gives pink slips to 2,500 employees. Heck, that’s enough of this already.

Locally, we have had our share of economic bad news. Staples closing as well as Stage on Woodlawn will leave a huge retail location vacant. MII literally chopping their workforce down to nothing means area workers face an unknown job future. Eaton has stated that voluntary cutbacks for at least six weeks are now part of their economic plan. It looks like Lincoln/Logan County is not immune to the whims of a national economy. It also tells us that an economic window of opportunity this past decade a window that this area failed to become a major participant in has perhaps closed. Economic slowdowns, of course, carry universal repercussions. Just because we didn’t take much of a part in the “boom” period does not mean we won’t be unwilling participants in a slowdown or possible recession. 

So what do we locally to make ourselves “recession proof”? That is an easy question to answer. All we need do is direct our efforts to the strengths we already have in this community. They are, in no special order, as follows:

We need to seek out small factories and make sure the ones we already have are receiving all the support we can give. Small factories are better for our economy than huge corporate giants. MII is cutting 80 percent of their workforce, and the effect on those people laid off will be telling. Imagine what would happen to a city like Peoria if Caterpillar would cut 80 percent of their workforce. You might as well bring a shovel up to the Peoria area, because such a catastrophe would bury that area’s economy. 

I lived in Pekin in the late 1970s, and the near-year-long Caterpillar employee strike had a disastrous effect on every business in the valley. Peoria and East Peoria learned their lesson well. There are now hundreds of little widget factories in the area, making the economy sound by its diversity.

Rule No. 1: Many small factories are better than one or two large ones. Seek out new ones. Support the ones we already have.

 

 

[to top of second column in this commentary]

We need to recognize recession-proof entities and help them to grow. The headlines have been filled with the fact that both Lincoln Christian College and Lincoln College are growing. Education is not subject to the whims of the stock market. Education, especially specialized courses and college degrees, are growing in importance regardless of whether the economy is positive or negative We need to do all we can to make sure these colleges as well as Heartland continue to be positive about investing in growth in our community. Don’t think that Champaign-Urbana and Bloomington-Normal don’t realize how important their schools of higher learning have been to their stability and economic growth.

Rule No. 2: Educational entities are solid economic opportunities. They deserve our maximum support.

Finally, and perhaps most importantly, we need to recognize and support the small businesses in our area. You know the ones I am talking about. They are the ones who buy your organization's pizzas and candy bars. They are the ones who buy an ad in your pamphlets and on your calendars. They are the ones who sell your raffle tickets and contribute to the many charitable events we have in this community. They are the businesses that don’t tell you to write to the corporate office about being a school booster. They are the ones who say sure, put me down as a supporter.

 

These small businesses are owned by individuals you know personally. Their little stores and shops dot our economic landscape and cause jobs and taxes to flow into our economy. They are the same as us little guys trying to make a living. They base their decisions on being in business on one simple business tenet. They will stay here and remain in business if they can make enough money to earn a living.

Unlike a corporate giant like Staples, small businesses fight off slow times as long as they can. They don’t make their decisions to close up or leave Logan County because their profit doesn’t meet national guidelines. They decide to remain our merchants as long as they can afford to stay. Look at the small businesses in Lincoln that have closed. Every one of them hung on as long as they could. Most stayed in business until there was no possibility of viability. Ask a Penneys or a Sears or even a Wal-Mart if they will do that. I promise you their answer is no.

 

Rule No. 3: Support small business. Without small business, a community is subject to the whims of giant corporate America.

I could turn this article into a short story or probably even a book, but this is the crux of my feelings on the economy in Logan County. Sometimes when problems in our personal lives look the bleakest, we find the solutions are right in front of us. Look at the end of your nose this week. There are many good things, special things right down the block from where you live. I’m talking about the businesses we already have. Support them. It’s our turn to help. In effect we will be helping ourselves.

[Mike Fak]

Click here to comment on this article.

ILLINI BANK
2201 Woodlawn Rd. in Lincoln
1-888-455-4641 or 735-5400
Ask for Terry Lock or Sharon Awe

Ask about our 7% APY CD
7 mo. - $5,000 minimum

Claire's Needleworks
and Frame Shop
"We Frame It All"
On the square
217-732-8811
M-F 10-5  Sat 10-4
cmstitches@aol.com

Tan every day of the week

at FAMILY CUSTOM CLEANERS
and LAUNDRY

621 Woodlawn     735-2505

M-F 7am-6pm,  Sat.  8am-4pm, Sun. Noon-3

We have top-of-the-line 7ft beds

Mention this ad for 10% off

any tanning package

Back to top

 


 

Top Stories | Sports News | Sports Talk | Area Athletes in Action | Out and About | TechLine | Weather | Elsewhere

A Day in the Life... | Milestones | Obituaries | Diaspora

Business & Ag | Organizations | Events | Good Neighbors | Honors & Awards

Ombudsman | Law & Courts | Rural Review

Crosswords | Games

The Arts | Home and Family | Spiritual Life | Health & Fitness | Teaching & Learning | Book Look | Movies & Videos

Still Waters | The Hallway Buzz | What's Up With That? | Where They Stand | the em space
How We Stack Up | By the Numbers

Letters to the Editor | About LDN | Corrections | Happy Ads | Quick Coupon Clip-Outs