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Utilities offer clues on state of economy
by Midland Reporter-Telegram
You can almost measure the nation's economic condition just by getting the records of utility companies. You can readily tell where the economy is receding or depressed by looking where utility companies are shutting down power and gas to homes.
When these shut-off percentages climb, it is most certain that the economy in that area is on the decline. And that's what is happening all across the country as the U.S. economy continues to sour. More and more homes are losing electricity and gas because of higher fuel prices, job losses and business collapses.
Shut-offs have been running 17 percent higher than last year among customers of New York state's major utilities, and 22 percent higher in economically hard-hit Michigan. They are up in all or part of dozens of other states, including Pennsylvania, Florida and California, according to an Associated Press check of regulators and energy companies.
These states also happen to play a key role in the upcoming presidential election as voters seek answers from their leaders on why they can't pay for their household needs. There has been stepped-up efforts by state and federal governments, utilities and private groups to help people avoid shut-offs this winter, but some still worry the problem will only get worse in the coming months, particularly with the downturn on Wall Street.
Because of high gasoline and home power prices, many families at the lower incomes have really been squeezed. In fact, many middle income families are finding it hard to make ends meet.
Americans are rediscovering thrift as they shop more wisely. They are also expected to cut back on holiday shopping such as the upcoming Halloween season. American are taking shorter vacations and not traveling as far when they do travel.
In fact, Americans are even going to extra lengths to cut down on driving in their own communities by doing more car pooling and combining shopping trips.
All of this certainly produces a downward tug on the economy. The new penny pinching ultimately costs jobs all across America. The more jobs that are lost, the more the economy suffers and the more Americans find ways to cut back even more. It can be a vicious cycle.
The U.S. economy lost 159,000 jobs in September as the financial crisis bit deep, and employers in the world's largest economy have projected a continued decline in hiring for the fourth quarter, according to a survey of 14,000 companies by employment services provider Manpower.
This cycle must be broken and we hope our leaders are innovative enough to find some solid answers.
When these shut-off percentages climb, it is most certain that the economy in that area is on the decline. And that's what is happening all across the country as the U.S. economy continues to sour. More and more homes are losing electricity and gas because of higher fuel prices, job losses and business collapses.
Shut-offs have been running 17 percent higher than last year among customers of New York state's major utilities, and 22 percent higher in economically hard-hit Michigan. They are up in all or part of dozens of other states, including Pennsylvania, Florida and California, according to an Associated Press check of regulators and energy companies.
These states also happen to play a key role in the upcoming presidential election as voters seek answers from their leaders on why they can't pay for their household needs. There has been stepped-up efforts by state and federal governments, utilities and private groups to help people avoid shut-offs this winter, but some still worry the problem will only get worse in the coming months, particularly with the downturn on Wall Street.
Because of high gasoline and home power prices, many families at the lower incomes have really been squeezed. In fact, many middle income families are finding it hard to make ends meet.
Americans are rediscovering thrift as they shop more wisely. They are also expected to cut back on holiday shopping such as the upcoming Halloween season. American are taking shorter vacations and not traveling as far when they do travel.
In fact, Americans are even going to extra lengths to cut down on driving in their own communities by doing more car pooling and combining shopping trips.
All of this certainly produces a downward tug on the economy. The new penny pinching ultimately costs jobs all across America. The more jobs that are lost, the more the economy suffers and the more Americans find ways to cut back even more. It can be a vicious cycle.
The U.S. economy lost 159,000 jobs in September as the financial crisis bit deep, and employers in the world's largest economy have projected a continued decline in hiring for the fourth quarter, according to a survey of 14,000 companies by employment services provider Manpower.
This cycle must be broken and we hope our leaders are innovative enough to find some solid answers.
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