Backroom Report - Monday, December 8, 2008

One doesn’t have to look far around Bartow County to see that the economy is on very shaky ground. Over the last few days, six restaurants have closed their doors and rumors are strong that a local major car dealer will soon be shutting down.

Here at the radio station we’ve had two advertisers file chapter 7 bankruptcy in recent days… one, a major national client owing us thousands of dollars… and many other clients are struggling to pay their bills. It’s the old… if you’ll pay Susie, then Susie can pay Tom, and Tom can pay James, and James can pay Rita, and Rita can pay me, and then I can pay you.

Consumers are tapped out with many carrying high debt levels… falling home prices and new strict lending rules have eliminated home equity lines as a source of extra cash for most… and the still shaky stock market has greatly reduced many nest eggs and retirement plans.

Unemployment here in Bartow and neighboring counties has now topped 8%… in nearby Chattooga County it’s 9.1% and many economists expect job losses to continue to escalate for at least another 12 to 18 months. Plus quite a few folks who still have their jobs have seen their hours cut back.

Then there’s the psychological component… even if the recession hasn’t resulted in a cut to your personal income, you probably feel the overwhelming urge to cut back and hunker down… thus contributing to our shrinking economy.

For the last 30 years NW Georgia has weathered economic downturns fairly well… the continued influx of newcomers and construction helped provide an offset to other losses. This time construction is flat, foreclosures are thru the roof, manufacturers are downsizing, retailers are closing… we’re getting hit from every angle.

Seeing a precipitous drop in state tax revenues, Governor Perdue ordered state agencies to put together plans to cut their budgets by 8%. So what did the Board of Regents do to help cover the budget cut? They raised fees that students pay each semester… Families are tapped out and losing their homes… and the spoiled brainiacs running Georgia’s colleges and universities refuse to share the pain by tightening their belts a paltry 8%.

Unfortunately it’s the same at almost every level of government. Over the last year or two we’ve seen increases in fees for business licenses, water rates, a new storm water utility tax, and a continued rise in the appraised value of many homes and commercial properties when the actual values have decreased… resulting in property taxes that are higher than they should be.

I would love to pick up the Daily Tribune one morning and read the headline… “Cartersville-Bartow Chamber of Commerce Encourages Local Governments To Cut Taxes And Fees”.
The problem is it will never happen as long as local government plays such a large role in the structure of the chamber.

While a local chamber needs to work with area governments to facilitate positive change… chambers leaders must remember that their first allegiance is to the businesses they represent… and sometimes that means publicly standing up to government.

If you’re like me, you’re not too big to fail and are probably not expecting a government bailout. But it would be nice to have a local chamber ready to stand and fight higher taxes, fees, and burdensome regulations.

In the meantime, if you own or manage an area business… keep fighting the good fight. It’s in all of our best interests to see each other be successful during this downturn.

That’s my opinion… we welcome yours… Thanks for listening and I’ll see you next Monday… for a complete transcript of this morning’s comments, go to NewsTalk1270.com (End of complete transcript of commentary that aired on NewsTalk AM 1270 – WYXC at 7:35 AM Monday, December 8, 2008)