Not so sweet after all

Just last week Hershey Chocolate Co, in Stuarts Draft was conducting a hiring fair. Now they are firing employees... or damned close to it. According to NBC29 Hershey's will furlough about 150 employees for a month. If the economy doesn't improve, many of those furloughs will likely be permanent.

Meanwhile hypocritical Republicans in Congress, including Bob Goodlatte who sent out a flatulent newsletter "explaining" himself, are dawdling around. Yep, Mr. Goodlatte, who had no trouble spending billions in Iraq and helping George W. Bush in running up the national debt for a war that had nothing to do with our security, can't help rescue his county and his constituents. Is he for "big government" only when it means WAR?

Bob, I have news for you. This is war. War against fear that feeds on itself. Americans lives at stake. American families. In times like these we expect our elected officials to... lead, follow, or get the Hell out of the way. You've let us down, Bob.

Moonshine?

The slowing economy is being felt in the Shenandoah Valley and across Virginia. A few recent examples:

• Just before Thanksgiving, Valley Building Supply closed its Waynesboro store, laying off 19 people and relocating about half a dozen to their Staunton location. The company blamed the move on the slowdown in building and the economy in general.
• Intermet Corp, a manufacturer of cast-metal auto parts with a foundry in Radford, may lay off 140 people after the first of the year. And, Acumet Global Technologies will close its Wytheville factory during 2009 with the loss of over 160 jobs. Acumet is a supplier to the auto industry. Most of Virginia's connection to auto manufacturing (about 11,000 jobs) is found in southwest Virginia.
• Pilgrim's Pride has filed for Chapter 11 bankruptcy after losing $802 million in the 4th quarter. Bankruptcy will allow for a reorganization that will allow them to continue operating and may save most of 700+ jobs at their Broadway plant. They also have scores of growers in Rockingham and surrounding counties. Like others in the poultry industry Pilgrim's Pride has been hammered by rising feed costs.... especially corn!
• Furniture frame and seating manufacturer, Frank Chevan, will close most Bedford operations and consolidate in Roanoke. Up to 90 jobs may be directly affected. One of Chevan's customers, Hooker Furniture, which is also located in Bedford, has already cut its 270 employees to a 4-day week.
• Shorewood Packaging will close its plant in northeast Roanoke, costing 45 jobs in mid January. The company makes a variety of consumer packaging products.

In tough economic times some folks look for old fashioned ways to make money. Virginia ABC agents announced they had found the beginning of a moonshine still near Mt. Crawford. An arrest was made after they found two 55 gallon barrels of mash (corn?) and a still. The last moonshine operation discovered in Rockingham County was in 2006 in the Fulks Run area.

Tomorrow, the Labor Department will announce new unemployment numbers. Some analysts predict the loss could be as much as 250,000 jobs nationwide.

Trickle down

Virginia's budget woes are trickling down to localities more and more every day. CCC has previously posted on the grist shortage that is impacting local governments, schools, and families. If you are like me, you are being a little more diligent about turning off lights and switching to energy efficient bulbs when the old ones die. We've turned the temp down a couple degrees and are using the wood stove more. Actually, we've done those things already and we never go to Starbucks and rarely go out to eat or the movies. What's left?

Counties and smaller cities across the commonwealth are finding new ways to save a few dollars. Staunton has turned off lights in parking garages during the day and is setting stop lights to blink at night to save electricity. Might also save gas for motorists? The Queen City is also combing public notices in newspaper ads. Bath County is giving a serious look at a four day school week to save on transportation and heating costs. Attendance at the Virginia Association of Counties Conference in Hot Springs was way down as localities trim travel costs. Hiring freezes are in place just about everywhere... most troubling when it affects public safety. There's more in the Richmond Times-Dispatch in Rural Localities Stretch Dollars.

Virginia isn't alone in scrambling to deal with the Bush downturn... recession... depression whatever you want to call our current situation. Yeah, I think the word depression is right-on in some communities. The hardest hit states are those which enjoyed housing booms that melted down in the subprime loans - California, Rhode Island, Florida, Arizona, and others. Compounding the situation is rising unemployment just as state unemployment funds are running on empty. States that rely on tourism are struggling. Oil producing states were doing well when oil was well over $100 a barrel, but are hurting as prices have been on a downward slide. And the prospects of a dismal holiday shopping season means less revenue from sales taxes, less part time employment... bad news all around for state and local government.

So, things are tough in Virginia and our localities, but it is worse in other places. The New York Times has more in Facing Deficits, States Get Out Sharper Knives.

Rotten Eggs

The Virginia Retirement System reports that it lost $11 billion since June, much of it during the recent financial meltdown. Its holdings are now worth $44 billion. The VRS executive director assured senators that its ability to pay pensions for about 140,000 retirees will not be impaired because the system still had a positive cash flow.

Based on my far more modest portfolio of investments, I can share VRS' pain. Actually though, I think I've fared a little bit better. 

But, more bad news this morning - President Bush is making a public statement about the economy and financial bailout today. When the president speaks, people listen, fear rises. Every time he's opened his mouth in the last month I (and VRS) have lost money.