Thought you were upper middleclass, didn't you?

by Prometheus 6
April 24, 2005 - 9:58am.
on Economics

Economic Jitters Hit Community Not Used to Lean Times
By SHAILA DEWAN

MARIETTA, Ga., April 22 - Inflation is tamer here than in the rest of the country, and gas is somewhat cheaper. The number of new people asking for unemployment is falling. Even so, for this affluent community just north of Atlanta, economic anxiety is creeping in.

The shopping district around the town square, usually prime real estate, is dotted with rental signs. Paul Lubertazzi, the owner of Traveling Fare Catering, plans to redo his menu this weekend, raising prices to cover increased food and delivery costs. Hakan Senkal and his wife, Semra, have moved into the apartment above their restaurant and laid off the cook. Their weekday business has dwindled to just a few diners.

"The people, they bring their own lunches with them," Mr. Senkal said. "They don't want to spend money."

Reluctance to spend is one of the signs of trouble burbling beneath the smooth statistics churned out by the state's Department of Labor. Merchants like Mr. Lubertazzi, who have been struggling to absorb rising costs instead of passing them on to their customers, are beginning to reach their limits. Jobs are not scarce, but high-paying jobs are disappearing, said John Helton, the executive director of CobbWorks, a job placement and training center in Marietta, part of Cobb County.

Last month, AT&T laid off 351 people who earned an average of $19 an hour. They had worked there an average of eight years, and many had no college degree, Mr. Helton said. They have little hope, he said, of finding a new job at the same level. He said he had heard stories about people who had been earning more than $100,000 taking jobs for $50,000 or $60,000. CobbWorks, a government contractor, is rated in part on how much of people's lost wages they are able to restore. The goal is 92 percent, but right now that figure is 84 percent, Mr. Helton said.