Photo by Carla Merrill

Photo illustration of clothing from Stamp by Greg Curry.

With more than 62,000 jobs disappearing monthly in the United States, the price of oil at an all-time high, and chains like Starbucks closing hundreds at a time, it is official - the United States is in a recession.

According to the Boston Globe, the United States has slipped into a deep recession that could be the most serious since World War II.

“The situation is bad,” said Martin Feldstein, president of the Cambridge group that is considered the official word on economic cycles, at a financial industry conference in Boca Raton, Fla. in March. “It’s getting worse, and the risks are that the situation could be very bad.”

Feldstein added that the chief causes of the shrinking economy are sinking housing prices, months of job loss, and turmoil in the financial markets.

But this isn’t the first recession that the U.S. has experienced in the last 10 years. Economists say the U.S. economy was steadily growing from early 1991 to early 2001, but according to howstuffworks.com, on Nov. 26, 2001, the news media announced the United States was officially in a recession and had been since March of that year.

Economists generally define a recession as two consecutive quarters of economic contraction. Many factors can contribute to the economy’s slump. Consumers buying less, decrease in factory production, unemployment, personal income and the stock market are some of the factors that go into a recession.

Although the rest of the world is obviously feeling the effects of the recession, has it hit locally?

“I do feel that the slump in the economy has personally affected me. I’ve definitely been spending less lately,” said 24-year-old Auburn resident James Anderson. “It seems like everything is so expensive right now. And since I haven’t gotten a raise yet this year, I’ve been having to cut corners where I can.”

Anderson said that he has cut back on spending money in several aspects of his life including eating out and clothing.

“I try to cook at home more now if I can help it,” he said. “And I’ve found myself digging through my closet for old clothes that I haven’t worn in a while instead of going out to spend money on something new.”

Local resident Laney Parrish said that she can also feel the effects of the economy. The 22-year-old said that she has also cut back on spending in the last few months.
“My friends and I have stayed in more lately trying to save money,” she said. “Some of us are trying to help out our parents too by not spending the money they give us so quickly.”

Although some locals are feeling the signs of the recession, are local businesses feeling it too? Out of the five businesses that The Corner spoke with, none said that they were feeling the effects of the recession.

“I haven’t seen a huge decline in sales in the last four years since I’ve been here,” said Fast Frame Owner Jonathon Ramsey. “The bottom line has stayed the same. We’ve had a better summer than we’ve had in the last three years, which is very unusual.”

Ramsey said since he sells a luxury item, he thought that his business would be one of the first to feel the decline, but he has yet to feel it.

“I don’t know if it has anything to do with the stimulus checks, but people are still putting money aside to get things done,” he said. “I don’t know if it’s the influx of students who are decorating their apartments, but I’ve gotten a lot of business from students.”

Local boutique Ellie and local music store The Guitar Shoppe both said that business has been good.

“Business has actually been better,” said Ellie Manager Emily Kneisley. “We moved the store and now have more merchandise.”

Although a lot of local businesses aren’t feeling the effects of the recession, one major economic issue that does seem to be affecting everyone is gas prices.

“Gas prices have been killing me!” Anderson said. “I have definitely been walking more when I can.”

Bike Shop Manager Brian Henry said gas prices have been helping his business.
“We’ve actually seen an increase in sales because of the price of gas,” Henry said. “With gas getting up to close to $4 a gallon, a lot of people have had bikes sitting in their garage for a few years and have brought them back out needing repairs and such.”
Henry said he’s seen a lot more people riding bikes or walking than he has seen in a while.

“I’ve seen a lot of people at the University choosing to walk or ride their bikes two miles instead of driving their car two miles to go to school,” he said.

The economy has also effected how some businesses are pricing items in their store. Henry said that he’s had to raise prices at The Bike Shop because his suppliers have raised their prices.

“It seems like a lot of people are having to do that,” he added.

Henry said that gas prices has also changed his personal behavior.

“Like everybody, I don’t drive as much,” he said. “I find ways to go to three places at one time instead of four our five places. I think it probably affects everybody when you’re paying $60 or $80 for a tank of gas. You can’t go out to eat for lunch ... your behavior is going to change a little bit.”

Although some may not feel the effects of the recession as much as others, the fact is that the economy is in need of help.

Some stores like Ellie said they have been doing what they can to help customers not spend as much.

“We try to offer coupons to people to help them out,” Kneisley said.