Curmudgeon's Corner

Economic Disconnect?

Posted by Al Campbell on June 18, 2010

Economy, Germantown, Political, Quality of Life, U.S., Wisconsin

There seems to be a disconnect at work so far as our country’s economy as well as that of our state and region.

I had the rare opportunity to take a boat ride yesterday and the venue was Okauchee Lake.  Friends had issued an invitation to us and another couple and we were favored with wonderful weather for the afternoon.

We noted all the beautiful, way beyond our means, homes along the shoreline as we motored around the perimeter of Okauchee Lake.  After awhile, I mentioned that there were quite a few For Sale signs dotted amongst the big beautiful homes, and that there were several beautiful new homes under construction that had no workmen present.

This morning I noted an article in the Business Journal discussing the sorry state of the economy so far as home sales on Okauchee Lake and began to see that the disconnect is not limited to the lower and middle economic classes but that it extends upward to those more advantaged economically.  A First Weber realtor was quoted as saying, “They tell us we have a six-and-a-half year’s inventory for sale on Waukesha County lakes”.  These are homes in the $1 million to $3 million and above range.

The unemployment rates seem stable or falling slightly but those gains seem to be largely in the government sector based upon ‘found money’ from Washington.  I know of many people who have been in the employment marketplace for a long time without hope of any near-term solution.  Then there is a friend who runs a staffing company and he has indicated that his business is up significantly over the same period a year ago.  I believe his agency is placing people in light industrial positions where there has been an uptick.  Maybe he is benefiting from employers’ sense that they want the flexibility that ‘non-employee’ employees bring with the ability to turn them on or turn them off with a single phone call.

Whatever is happening seems scattered and seems to have had little ‘main street’ economic impact if closed store fronts are any indication.  On the other hand, the restaurants don’t seem to be showing signs of a recession; the local eateries always seem full in the evenings and on week-ends.

Maybe, rather than a disconnect, there is a disjointed economic recovery underway; one that touches certain elements but not others.  Whatever is the best word to describe where we seem to be today, I cannot buy into a broad economic recovery as being underway in spite of what some would like me to believe.

Maybe we are in the midst of that dreaded ‘stagnation’ malaise so far as our economy is concerned.  Whatever it is, it doesn’t seem to be felt uniformly and it doesn’t seem to be boosting our confidence as consumers.  That doesn’t bode well.