Inflation is being felt across all areas of the cost of goods, with spending on food, fuel, supplies and payroll increasing.
According to the latest consumer price index, the “total items index” increased by 3.7% in 12 months. The shelter index was the largest contributor, as was the rise in the gasoline index.
“In banking, mortgage rates are everywhere. It affects our customers and they come and say they have never seen interest rates like this, especially the younger generation,” said Jan Fine, vice president and CEO of First State Bank.
Savings accounts are also affected by the cost of living because customers can’t afford to save as much for the future, Fine said.
This is particularly evident among seniors who live off their Social Security, their retirement checks, and the interest from their savings accounts. Seniors’ living expenses are so high that Fine sees them getting more out of their savings.
“I think mortgage lending has definitely slowed,” said Susan Chapman Plumb, chief executive of Local Bank. “But because there is a housing shortage in Tahlequah, it creates a little bubble in the Tahlequah region. I think sales and construction loans are still strong, so that’s a good thing, but you can get a little better deal on a house now than you could a year ago.”
Todd Doyle, owner of BS&G Pawn Shop, said his company has to pay attention to inflationary pressures.
“Inflationary pressures are evident and are adversely impacting our customer base,” Todd said. “In our opinion, everyday prices for almost everything have a big impact.”
A customer who came out of the pawn shop with a guitar spoke about the pressure of rising prices for essential goods.
“I work long hours to make up for where the money is lacking,” said David Zamen. “About two months ago I had to give my guitar to the pawn shop because I was short on cash. I get paid every two weeks and sometimes [money] can’t quite make it to the next payday, so me [pawned it] bridge [that gap].”
At Morris-Cragar Flowers and Gifts, owner Gail Morgan reported a decline in sales at her store. Morgan has seen a decline in her business — not drastic, she said, but a noticeable difference.
“[There’s] “There aren’t as many people coming in to buy because they have to spend their money on something else,” Morgan said. “This store has been in town for 75 years and this is the worst year we have ever seen.”
The floral arranging business for funerals, weddings and graduations has been steady, but during the pandemic sales began to slow and costs have risen — and consumers are noticing that, Morgan said.
Tattoos are considered a non-essential item, but the economy hasn’t affected business at Ancient Origins Tattoo, a shop owned by Charles Campanella.
“It seems like it’s about the same. I would say tattooing varies with the seasons and around the holidays people seem to save their money [that]said Campanella. “Our big season is tax season.”
Campanella’s business costs also began to rise during the pandemic.
“The cost of gloves and some medical supplies doubled and tripled. Prices are starting to come down, but they definitely haven’t [returned] to what they were before the pandemic,” Campanella said.
The Tahlequah Area Chamber of Commerce has its finger on the pulse of Tahlequah and despite price increases, staff has still seen an increase in membership.
“We’re lucky here with the type of jobs we have,” said Nathan Reed, TACC president and CEO. “We are not completely recession-proof, but Tahlequah can withstand it better than some other areas.”
Reed attributes this to the number of government jobs in Tahlequah.
“Small businesses can continue to be supported because the people with these government jobs can support these businesses,” Reed said.
The Cherokee Nation has its own government, and if federal funding dried up due to a government shutdown, the tribe would still be fine. Northeastern State University’s money comes largely from the state, and the state will continue to collect those taxes, Reed said.
“We’re not tied to federal money as much,” Reed said. “It doesn’t have that big of an impact on this area – [our area is] state and local [based].”
Reed believes that the candidate who is elected to the highest office of president can definitely have an impact on the economy.
“The economy as a whole is influenced by the incumbent president,” Reed said. “Executive orders are one possibility. So from day one, [Biden] I have signed many of them that have changed policies and regulations. Any company can tell you that the stricter the government is about regulations, the harder it is to do business.”
District 9 Oklahoma Sen. Dwayne Pemberton, R-Muskogee, said a president can definitely influence the economy through executive orders.
“[President Joe] Biden’s border policies have allowed 2.6 million people to cross the border, and his green initiatives are making it harder for companies to pump oil, and that is impacting the economy, especially our people in Oklahoma,” Pemberton said.
What did you say
An Oct. 7 survey on the TDP website showed that gasoline prices are rising again, as are food prices, although they are expected to fall later in the fall. Respondents were asked which presidential candidate could better stimulate the economy. 43.2% of respondents believed that presidents could do nothing about the free market; 7.45% believe Biden would do a better job of stimulating the economy; 3.7% said another Democrat would be best; 37% said Donald Trump; 4.9% thought of another Republican; and 2.5% believe a third-party candidate is the best choice.
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