Mon, May 28, 2012, 11:22 AM EDT - U.S. Markets closed for Memorial Day

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First Person: The Domino Effect of Failing Business

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There is an old saying here in Maine, that we are five years behind the countries ailments, and five years removed from her recovery. With the ailment catching up with Maine in 2010 and the rest of the nation still suffering decline, the prognosis for short-term cure is dim. Long heralded for its stubborn economic stability, vacationland has become anything but for the gentle residents that depend on corporate and small business strength to carry them through the long winters.

Hancock County Maine, home of Acadia National Forest, had a population of 53,447 in 2009. Up to that point in time, Ellsworth, the Hancock County seat, was showing strong growth and attracting new business. The new Lowes Store had just opened and now employed 83 people, a good number for a town of 7,140 people. Automotive repair shops and restaurants lined the street, and the hotel sector was thriving.

By November 2011, the tide had shifted. The recently opened Lowes store was closing its doors and laying off 83 people. Friendly's, a downtown chain restaurant closed its doors also, adding 20 more to the unemployed sector. Quick Lube, an oil changing business collapsed. Historic hotels like the Ledgelawn Inn of Bar Harbor could no longer remain open. Business after business went broke, and unemployment skyrocketed to 12.5%. With the housing industry at a standstill, lumberyards and hardware's began selling off inventory, and the once bustling community grew stagnant.

This is the county where I live. These businesses were part of my work routine. For five years, opening up the Ledgelawn was 50% of my spring income. The lumberyard that closed was where I purchased building materials. The Hardware was my plumbing and electrical source. Lowes had been my tool and equipment supply store. In a matter of weeks, my entire business structure had changed for the worse.

The lower 47 are in no better condition. Today's media reports put forth that America is in economic recovery, but the proof is not in the pudding. The reality is that America is still in a state of desperate economic depression. More people are in need of assistance than at any time in the past. We have become a welfare nation of wanna-be-workers with no place to punch a time clock.

Maine is not the exception to the rule. Nationwide, city after city, and small towns across the board suffer the same affliction of stagnation and collapse. Areas of the south, west and north have fallen from economic grace and valiantly fight to remain relevant. Detroit once an industrial giant of 3 million people has lost over two thirds of its population and carries an unemployment rate of over 20%.

 

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