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Highlands Today

Is A Bad Local Economy All In Our Heads?

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Highlands Today Staff

Published: June 18, 2008

Wouldn't it be nice if we could just wish this bad economy away? Actually, that's not too far from the truth – at lease locally. Much of what ails the Highlands County economy is consumer confidence, not any one particular factor beyond our control with the possible exception of gas prices.

William Pittenger, senior vice president and chief real estate economist with Seacoast National Bank, recently told members of the Lake Placid Chamber of Commerce that the local economy isn't as bad as a lot of people believe, and that with a better outlook, it could turn around much quicker.

Pittenger is right about that. Our economy depends on consumers feeling confident to purchase goods. If they are scared jobs might not be there tomorrow, consumers are much less likely to spend. It's a self-fulfilling prophecy.

No one is doubting for a minute the effect of $4-plus a gallon gasoline. That hurts in a big way, and people barely making it before the skyrocketing fuel costs are finding themselves in big trouble these days. Also as a result of high oil and gas prices, just about everything is costing more these days, which also doesn't help.

Right here at home, though, unemployment isn't that terrible compared to other areas. That doesn't mean it's great, but most people are still employed. That means income is coming in. The problem is that most of that income is not going out – at least for the things that fuels our local economy.

Pittenger reassured chamber members that the "glass was half full." He believes the worst is probably behind us and slow growth will build over the coming year. It won't just happen, though. It will take time. More importantly, it will take time for consumers to feel good enough to start spending again.

Let's hope local consumers can feel better about their finances and start spending locally again.

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