Sunday, Oct. 05, 2008

Money No. 1 concern in S.C.

Voters looking closely at candidates’ economic plans

MYRTLE BEACH — Kelly Marshall, owner of Mr. Microwave’s appliance repair in Myrtle Beach, depends on equipment breakdowns at busy beach restaurants and hotels.

Marshall said about two-thirds of her business is from hotels and restaurants. But according to industry and state tax data, fewer travelers have visited Myrtle Beach this year.

That has Marshall worried about how she’ll continue to make a living.

“If they’re not doing anything, then I’m not doing anything, either,” Marshall said of the hospitality industry.

She’s not alone.

With the presidential election just a month away, voters — in South Carolina and nationwide — consistently rank the economy as their No. 1 concern. As a result, those voters are looking closely at the candidates’ economic proposals affecting jobs, energy and housing.

Like many on the Grand Strand, Marshall said the faltering national economy is affecting her life.

Perhaps more than any other place in South Carolina, the economic gloom is affecting Myrtle Beach:

• Data from AAA of the Carolinas show Americans are driving fewer miles this year as gas prices rise. For tourism-dependent Myrtle Beach, that’s disastrous. Those living within driving distance make up the bulk of Myrtle Beach visitors.

• Grand Strand hotels report more vacancies even after they have cut rates in an effort to keep their rooms filled.

• Home prices in Myrtle Beach have fallen faster than most other S.C. markets. Single-family home prices were down 10 percent in August from the same month a year ago.

• The Myrtle Beach airport has reduced airline fees in an effort to attract new carriers and boost the declining number of passengers.

• Last month the $400 million Hard Rock Park amusement park filed for bankruptcy after its inaugural season. Park owners said they were unable to secure enough credit to properly advertise and market the park.

Marshall, 42, of Surfside Beach, says the economy will affect her vote.

She is also one of many upset at an $810 billion federal bailout bill approved by Congress last week. Why send the money to Wall Street, Marshall asked, when she and other Americans could put it to better use.

“We could use that money,” she said. “I could have paid off my business (mortgage). I could have paid off my student loans.”

Marshall typically votes Republican.

This year, however, she is undecided, unhappy with both candidates for president because, she says, they have overlooked small-business owners.

ANXIETY ABOUNDS

Lacy Paulussen also does not like what she is hearing.

Paulussen and her husband recently opened House Parts, which sells hardware, fixtures and finishes. The couple had planned to expand the business, but now they cannot find a loan.

“We had goals that a year and a half ago seemed very achievable,” said Paulussen, 37. “It’s my livelihood. I can’t make any of the decisions because (the financial crisis) is here.

Others in South Carolina also feel squeezed by the economy.

A recent Winthrop/ETV poll of Southern voters, including South Carolinians, found more than four in 10 rated their financial condition as either “fair” or “poor.”

S.C. voters are looking for answers.

Paulussen, for example, said she did not like any of the candidates’ proposed economic solutions but likely would vote Republican.

“Who’s going to correct this?” she asked. “How are they going to correct it?”

Real estate broker Tom Middleton said he supports Republican U.S. Sen. John McCain for his tax and energy policies.

Gas prices are killing Myrtle Beach tourism, said Middleton, who works for Paradise Realty. The quickest way to lower fuel prices, Middleton thinks, is to drill offshore.

Middleton also thinks McCain is more likely to cut taxes, which could help Myrtle Beach’s economy.

Two years ago, a beach condo sold for $239,000, Middleton said. Today, they are selling for $175,000 — when they sell. Slow homes sales ripple throughout construction and manufacturing, he said.

“The real estate market is pretty much down, I mean way down,” Middleton said. “I have colleagues who put their license in suspension and had to go out and get a job.”

Myrtle Beach resident Arthur Mae Davis said she lost her job as a computer analyst and now is working two jobs to pay her bills.

Still, she worries about making her monthly house payment.

Davis, who said she will vote for Democratic presidential nominee U.S. Sen. Barack Obama, is disgusted by the financial bailout bill.

“We’ve got a deficit,” Davis said. “Now it’s got even worse. It’s just ridiculous.

“The stock market says they don’t have any money. I don’t understand what’s going on. I think we need new people in there.”

AN IMPORTANT CHOICE

Melissa Swartz, 24, of Myrtle Beach, said she and her husband are taking the long view on the economy.

The couple worry about losing money in their newly created retirement accounts and losing value in the home they just bought. But, Swartz said, eventually things will turn for the better.

Swartz said the economy is an important issue to her, and she respects both McCain and Obama.

However, Swartz said she would vote for Obama. New leadership is needed, she said, adding Obama favors tougher regulations of the financial industry.

Retiree Wayne Davis, 76, said he is worried about the flagging economy’s effect on his children and family.

Davis, who plans to vote for McCain, objects to the federal bailout bill but adds it was probably necessary.

Davis said the No. 1 issue in the election is the economy, making the presidential choice especially critical for the nation.

“It’s pretty important when you’re on a fixed income,” Davis said of the economy. “It is tightening up. Power rates are increasing this month.

“That gets my attention.”

Reach O’Connor at (803) 771-8358.

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