Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 20, 1992 TAG: 9202200090
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: SANDRA BROWN KELLY BUSINESS WRITER
DATELINE: LENGTH: Long
THEY LAUGH, BUT THEY'RE TIRED OF FEELING SO POOR
Sherry Carter's laughter was longer than her answer when asked how she's benefiting from the country's low inflation rate."It ain't hit me yet," the Revco clerk said.
Her comment was almost simultaneous with her co-worker's "Inflation down?"
"Those that have good jobs are all right, but those that have been cut back [on hours] or lost their jobs . . . they're hurting bad," said Mary Harris, who also works at the drug store on Campbell Avenue in Roanoke.
"The government needs to recognize that people born and raised in the U.S. need help," Carter said.
References to a disinterested national leadership and the disfranchisement of the middle class permeated reactions of Roanoke-area citizens interviewed Wednesday.
Some surrounded their comments with laughter or delivered them sarcastically, but the undertone was serious. Inflation may be in check, but something is out of control in the United States, they said, adding that the recession and the increasing number of job losses have made them more aware of the political impacts on the economy.
Roma Carter said this is the first year she has "gotten involved" and she watched television news as much as possible during the New Hampshire politicking.
Carter, who works in the Roanoke City treasurer's office, pointed out that while city salaries are frozen, her real estate taxes have gone up for the past three years.
"I don't think [politicians] have conceived of how middle-class people feel," Carter said. She said she canceled her newspaper subscription because its editorials didn't relate to the concerns of the middle class.
Citizens' experiences seem to have little to do with Wednesday's report that consumer prices rose just 0.1 percent in January and inflation is staying at 1991 levels.
Mike Segedi said he and his wife have only themselves to worry about and they haven't changed their spending habits. Still, he has an "uneasy feeling" about the economy.
Segedi worked for Norfolk Southern Corp. in Cleveland, until the railroad closed the office and transferred him to St. Louis. Then NS closed the St. Louis office and he came to Roanoke last March.
It's good to cut military spending, but what will the people who lose jobs because of that do? Segedi worried.
"We need to take care of people in the U.S. instead of sending money overseas," he said.
He said states need to create jobs, especially for the people who are the losers in defense-spending cuts.
Controlling inflation is "a mixed blessing," said Glenn Bowman, chief economist for Dominion Bankshares Corp.
True, low inflation averts price increases on goods, economists say. But low inflation also means smaller raises, slower growth in housing values and personal net worth. And low inflation suggests demand in the economy also is low - perhaps because of unemployment or fear of unemployment.
"If [consumers] aren't going to get raises this year, at least prices aren't going up," said Mary Houska, a Hollins College economics professor.
"Basically, I think what has happened is we've been in the doldrums so long that low consumer confidence and high debt loads have put all purchases on hold," Bowman said. Merchants have had no choice but to hold the line on prices - or reduce them - because customers are unwilling to pay full price.
Retired sisters-in-law Ethel Finch and Charlotte Clement rattled off a barrage of rebuttal to the idea that the government has gained control over runaway cost of living.
"Oh, my God, where did you get that from?" said Finch, who illustrated her point with an exaggerated wide-eyed look of surprise.
"I've never seen groceries as high," said Finch.
"You have to watch every penny," said Clement.
She had just made a trip to Revco. She said insurance covers the cost of the digitalis she takes, but not the Dristan she needs for allergies.
She considered it a coup Saturday when a young friend who is a medical student directed her to a Dristan substitute that saved her $4.50.
The what-have-you-done-for-me-lately-George attitude prevailed throughout the interviews.
"Bush is something else. Prices are still high and everybody's still complaining," said Stanley Joseph. "If you're not higher-class status, or at least upper middle class . . . anything below that is obsolete."
Joseph, who is from Brooklyn, carried a handful of library books as he walked with Tia Hubbard in downtown Roanoke. Hubbard is a student at Virginia Western Community College and Joseph said he plans to enroll there. They had education on their minds.
"Where are we getting the money that's going to other countries?" asked Hubbard. "The government needs to be putting in more money for education in the U.S."
Roanoke General District Judge Ed Kidd said the economic situation is a "he giveth and she taketh away" situation.
"The president wants to give us a break on our income taxes, and real estate taxes go up. The sales tax is increased to pay for a bond issue for higher education . . . the federal government gives back; the state increases."
Business writer Daniel Howes contributed to this report.