Minding Your Business Blog Index
July 14, 2008
Introduction

When I first started paying close attention to Maine business news, the state was hurting from the recession of 1990-1991. Federal regulators were seizing banks, notably mine at the time, Maine National Bank , and businesses couldn't get access to credit.

These were the days when Porteous, Mitchell & Braun still had its flagship department store on Congress Street, just a stone's throw from Bernie's Fine Fashions, in what is now the Maine College of Art building.

People regularly called the newspaper back then, angry that we were causing the downturn -- or at least making it much worse -- by our coverage of those events. If only the newspaper would write some positive stories, we'd all be back on the path toward prosperity.

Today, I am again getting those calls, as the country goes through another rough patch. The availability of credit is a big problem this time too, as the nation's two big loan guarantee corporations, Freddie Mac and Fannie Mae, fight for survival amid the home foreclosure crisis.

Bernie's is long gone, and the Web has taken over most everything. This site today joins that mad rush. I hope that, over time, it will prove to be a place for the sharing of information about what is going on with Maine's economy, the good and the bad.

I hope that visitors will add their voices to the discussion. There's certainly plenty to say, at this time when surveys show that Mainers' top concerns are economic: jobs, energy prices and the cost of living.

As we sit here today, there's plenty of worries too about foreclosures and the value of real estate here in Maine. But the big terror that most Mainers feel has to do with fuel prices. No surprise there.

Stories we published today talk about how some people are advocating for the expansion in the use of wood pellets, as a replacement for oil; how fewer people are using the Maine Turnpike because they are trying to drive less; and the idea of having state workers put in four-day weeks as a way to save energy.

For tomorrow, energy writer Tux Turkel will have an article about a proposal to raise natural gas prices from Northern Utilities, and retail reporter Beth Quimby will describe how more Mainers are frequenting low-price retailers, in part because they are worried about the cost of energy.

But there's plenty of other things going on that we're tracking.

John Richardson, who writes about resources and the environment within my reporting group, is poring over several hundred pages of documents from Plum Creek for a story about the future of it's proposed development on Moosehead Lake.

Noel Gallagher, a reporter who covers manufacturing for us, is in Boothbay, so she can describe what the future holds for the Washburn & Doughty boat yard that was destroyed by fire last week.

Tourism-industry writer Ann Kim is exploring the degree to which the weak dollar is attracting Europeans to Maine this summer, for what is likely to be a story later in the week.

Let me know what you are thinking about, during these unsettled economic times: the good, the bad; your hopes, your fears.

Posted by Eric W Blom at 02:22 PM

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Comments

The current recession is different from the one Maine experienced in the 1990s, in part due to the fact that cheap oil is a luxury of the past. Whatever solutions we find today must thus be different from those we sought out in the 1990s.

We must also be hopeful about the future because we can indeed make lemonate out of melons. As we lose service sector jobs or manufacturing sector jobs, we ought to be hopeful about the possibility of replacing them with green economy jobs. The green economy is in fact booming and there are simply not enough people trained in energy auditing, solar panel installation, etc. We must refocus our energies on the new economy that is all around us.

Posted by Anna Priluck
July 17, 2008 10:05 PM

No doubt about it, Anna. The oil piece of this is really different, though it does kind of have the feel of the 1970s (times 10.) You're spot on about the green jobs, too. There's an enormous amount going on in that area.
I just wrote about some of that today, in a post, if you have time to check it out.

Posted by Eric Blom
July 17, 2008 10:14 PM

Yes, Eric, I did see your post about how various alternative energy ideas are becoming mainstream.

It is no longer necessary for environmentalists to talk about global warming and how we must all conserve or use alternative energy to save the world. They can simply point to people's wallets and talk about economics. The end result is the same: people start to conserve energy and adjust their lives because they absolutely have to in order to survive economically. Politically, it is a fascinating time because green and economics have not been on the same side so perfectly in a long time. If handled correctly, the partnership between green technology and capitalism can indeed save the world.

Posted by Anna Priluck
July 17, 2008 11:04 PM

Eric Blom-

I think you're delusional in so far as you've completely overlooked the steady drip-drip-drip of the lowered standard of living expectations of all Mainers since the 1990 recession.

You're in Portland. Right? Take a look around. More drugs? More crime? More fees? More police? And much less affordability?

I thought so.

The delusional experience you're caught up in, if you can recognize it, comes from the Enlightenment born belief in "progress".

Before the Enlightenment, human beings were fairly attached to just plain to surviving and had little conceptual belief in anything anyone might refer to as "progress".

In Maine progress has come slowly, or at least in spurts when Massachusetts residents moved into the state in waves and showed Mainers how to do it all better, after they displaced the Mainers, that is.

I'm in Aroostook County.

And the squatters from Massachusetts can have Portland as far as I'm concerned. But that's just my personal bias against smelling urine in every downtown doorway. It reminds me too much of Boston, I think.

What any business writer worth his pound of salt is going to have to come to grips with in the very near future, and it's a stretch for most, is that "progress" is generally accompanied by a lowered standard of living.

That's quite contrary to what most will believe. That's the delusion I'm writing about, here, to you.

However, it largely depends on how "progress" is measured.

I have developed something called "the five year old test of progress".

It goes like this: You were five years old. And I was five years old. I was five years old more than fifty years ago. It's a precious time in life.

Now to measuring progress with five year olds.

Can any of us say, each successive crop of five year olds since we were five years old has seen an improvement in their quality of life? Their standard of living?

That gnawing feeling in your stomach right about now, that's the true measure of "progress".

Maine, the way life should be.

Stop rushing it into that horrible concept of progress everyone is so utterly deluded about.

Don Robertson, The American Philosopher - Limestone

Posted by Don Robertson
July 21, 2008 05:28 PM

I think Don Robertson has some good points. Remember, when the overtime law was first enacted it was expected that the workweek would end up being just a couple hours by this time. Instead, we're conditioned by corporations through our mediated culture to become mindless cogs in endless pursuit of "progress," so we can make and buy more trinkets and baubles, stay in debt and keep the machine running.

As long as the "little people" have beer, a couch and sports on tv, all's well with corporate America. Toss in a little religion on Sundays to ensure us that we'll all get our rewards in the "next" life, and we're good.

Who is John Galt?

Posted by Sharky
July 22, 2008 11:34 AM

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Eric Blom has been a journalist in Maine for 20 years, much of it as a business reporter and editor. He's been inside factories, office buildings and retail shops throughout the state, meeting with workers, shoppers, investors and executives about their hopes and fears. These days, as local and business news editor, he has a bird's eye view of what's happening in Maine commerce.

Eric, who was born in Rhode Island, has been heading north for some years now. He graduated from Boston University, edited a weekly newspaper in Belmont, Mass., and worked at the now-defunct Peabody Times in Massachusetts before coming to Maine. He lives in Portland with his wife and two children.

Knowing Maine's Business is a gathering spot for the respectful exchange of information and ideas about the marketplace.



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