Taking stock

Survey of local shoppers finds economic improvement slow at best, By Amy Stanfield Lafayette — The American Recovery and Reinvestment Act (Recovery Act) was signed into law by President Obama on Feb. 17, 2009 in an effort to jumpstart the United States economy and address many of the economic challenges facing the nation. Over a year later, the country is just now starting to see some relief from an economic crisis that saw a struggling housing market, an increase in unemployment, businesses that fell to the wayside, while Americans spent less money, and much more. During a recent visit to Lafayette Village, area residents were polled to see whether they were feeling the difference. Brooke Babcock of Wantage said she felt the effects of the down economy first-hand. “My husband had his hours cut for a few months and was on partial unemployment,” she said. However, Babcock does see things turning around, citing the recent rise in the stock market. Stocks have steadily been rising in recent months on signs that the economy is improving, slowly. The Dow Jones Industrial Average is currently hovering around 11,000. Jobs report Others, like Sandra Laspiso of Sussex, while not directly affected by the poor economy, saw decreased activity at her job. “I work at a bank and things did slow down a bit, but it’s slowly getting better,” Laspiso said. When business slows, workers lose their jobs. For many, it has taken months to a year or more looking for work before being hired again. Still many others remain unemployed. According to the U.S. Department of Labor, as of Jan. 29, 2010, the Recovery Act has funded over $49 billion in benefits to unemployed workers to help struggling families make ends meet during this recession. In the state of New Jersey, the unemployment rate decreased by 0.1 percent to 9.8 percent in March with the national rate at 9.7 percent. At the same time, according to the state Department of Labor, 40,000 New Jersey workers collected their last unemployment benefits available to them at the end of March, increasing the number of workers no longer eligible for unemployment insurance benefits. Lack of income means more people looking for more ways to save money in any way possible. Many employ the “Do I really need it?” method as they tighten their personal budgets. “I think twice before I buy instead of compulsive buying,” Babcock said. Those luxury things people used to buy and do have become a thing of the past, including for many, eating dinner out. Laspiso said she has more home cooked meals now instead of going out to dinner so often. Watching the spending Mike Jablonski of Stillwater, a custodian at a local school, said he’s seen layoffs where he works. He’s careful with his money. “I don’t have a cell phone or television. I can afford it but I feel there are other things I can spend my money on.” For those thinking of taking advantage of the homebuyer tax credit, the deadline is April 30. The National Association of Realtors reports that in the Northeast the Pending Home Sales Index (PHSI) rose 9 percent to 77.7 percent in February and is 18.9 percent higher than February 2009. The PHSI is based on existing-home sale contracts, not closings. Significant change remains to be seen locally and nationally within the housing market and in the overall state of the economy. Not everyone is in the market for a home, but everyone does need to buy groceries. Lucy Fenn of Hackettstown said she’s not happy with the prices there. “It’s really sticker-shock sometimes. I really think its going to be awhile yet” before the economy improves. What to do in the meantime? “I’ve been being really careful about how much I spend,” Fenn said. “I think ‘do I really need it?’”