Print |
E-mail to a friend
OPINIONS
Editorial: W.Va. avoiding major trouble operating on human level economy
West Virginia State Capital Building Charleston gold dome on Wednesday, Aug. 20, 2008.
Purchase this photoPeople have been talking about a recession all year, but it hasn't hit yet. Technically, a recession is two consecutive quarters -- six months -- of decline in the nation's gross domestic product. We haven't had that yet this year.
But the recent troubles on Wall Street and elsewhere show that parts of the economy are in trouble.
Last Friday, the federal Labor Department announced that employers cut payrolls by 159,000 in September, the most in more than five years. But let's dig into those numbers. Although employers cut 159,000 jobs, the number of unemployed persons barely changed, and the overall unemployment rate remained constant at 6.1 percent.
West Virginia numbers for September aren't out yet. They should be released by the middle of this month. However, the numbers for August showed some good news. The West Virginia Bureau of Employment Programs counted an increase of 3,500 people working from August 2007 to August 2008. Three of the largest counties -- Berkeley, Cabell and Monongalia -- showed increases in employment while two --Kanawha and Wood -- showed decreases.
Some economists and pundits have talked about the difference between the Wall Street economy and the real economy. The real economy is where the working class and the middle class live. It's not a world of derivatives and mortgage swaps and all those financial instruments that most people have trouble understanding.
The real economy is where most people live and work. It's where people make stuff and provide services. That pretty much describes West Virginia.
When the housing bubble burst, it barely affected West Virginia. The state did not have the rapid, unjustified increase in real estate prices that some other areas of the country did, so when the bubble burst, it was barely noticed here.
We have other economic problems, though. Our median household income is still near the bottom of the list, and many people have real problems with credit card and other debt.
Rather than relying on complicated financial instruments whose values are difficult to calculate, West Virginians and others in the Tri-State will continue to work in the real economy. We're glad when Alcon, Engines Inc. or any other employer expands. We make stuff. We help people. So far, that has kept our economy steady. Not exceptional, but steady.
We can't escape the Wall Street economy, but our real growth will come as we give greater value to education, to improving public safety and to making the area a place where people want to work and live. It's a long-term process, but we can't let up.
