‘NO POSITIVE SPIN’: Economist says this may just be the first wave of depression for area

By KATHERINE ROSENBERG, Editor

LUCERNE VALLEY - The national economic crisis is hitting home with at least three local businesses closing their doors in recent weeks with a fourth slated to close next week, Chamber of Commerce employees confirmed.

Jody’s Preloved Goods, Christian Books and More and Geared 4 U Motorcycle Shop, all in the Lucerne Valley Shopping Center, have closed up shop. Shear Perfection, in the Crossroads Shopping Center near the Lucerne Valley Market, is scheduled to close its doors this month as well, according to Chamber of Commerce President Lorane Abercrombie.

Last week, local business owner Lou Grantt of the Hi Desert Book Oasis wrote a Letter to the Editor urging fellow community members to shop locally for fear the area may turn into a “ghost town.”

Abercrombie stressed the same, saying, “We’d better get out and support our local businesses so they don’t close.

But Inland Empire Economist Dr. John Husing said it may already be too late, and that an economic recovery is not likely for the area anytime soon. He added that these businesses, who were likely operating with marginal profit ratios to begin with, may just be the first wave of businesses to close.

“When they say this is the worst economic time since the ‘30s, it is,” Husing said. “There’s no way to put a positive spin on it.”

But relative to the types of businesses which have gone under or moved away, Husing identified all of them as offering non-essential services.

“You can have a friend do your hair, and you can use your old Bible a little longer,” Husing said. “When incomes go down, the things that continue to survive are the necessities. The Market should maintain, people have to have food.”

Husing also pointed to the 12.9 percent regional unemployment rate and said that the loss of residential construction jobs was the single largest blow to the economy.

“Those jobs have completely evaporated. When you shut off that flow, it shows up in sectors like retail which shrink because there is less money to circulate through the stores,” Husing said.

“Unfortunately this is a multiple-year problem and it’s going to last for awhile,” he concluded.

Susan Waldron, who works at the Chamber of Commerce, said that the organization still has 99 members that offer a myriad of services.

Still, looking to the Lucerne Valley Shopping Center she said, “it’s really getting empty over there.”

Katherine Rosenberg can be reached at 964-9057 or by e-mail at krosenberg@vvdailypress.com.