|
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.
|
