North and South Carolinians are feeling the pinch of a rocky economy, with nearly half of respondents in the latest Elon University Poll witnessing their retirement plans lose at least a quarter of their values alongside a drop in the values of their homes.

And the federal stimulus package passed by Congress and signed into law by President Barack Obama remains unpopular among residents of both states, with South Carolinians expressing even more disapproval than their neighbors to the north.

The poll, conducted April 19-23, surveyed 662 North and South Carolina residents and has a margin of error of plus or minus 3.9 percentage points.

Personal Effects of the Economy

Nearly three quarters of respondents say that the economy has touched them personally. Among the ways residents have been affected:

Lost money in the Stock Market – 60%
Home Value Decline – 45%
Retirement Plan Lost 25% or More – 45%
Reduction in Hours at Work – 25%
Lost Medical Coverage/Insurance – 16%
Trouble Paying Mortgage – 15%
Lost a Job – 13%

Views on the Overall Federal Stimulus Package

Support for the federal stimulus is split among respondents but is particularly unpopular with South Carolinians. Respondents split evenly on their support (46%) and opposition (46%) to the federal stimulus package, yet 48 percent believe the stimulus package will help the U.S. economy.

However, a majority of residents (52%) oppose another stimulus effort by the federal government, while only 35 percent would support such an effort.  In gauging the various aspects of the spending from the stimulus package, residents believe the government has spent too much on:

‘Large banks’ – 75%
‘Financial institutions’ – 68%
‘Auto companies’ – 65%

In contrast, Carolinians believe that too little has been spent helping:
‘Homeowners facing foreclosure’ – 48%
‘Small business owners’ – 68%

Views on the Federal Stimulus for Banks and Financial Institutions

Residents of both states are divided on the federal government providing money to banks and financial institutions in an effort to address the country’s economic woes. Fifty-one percent disapprove of the federal government providing money to banks and financial institutions, while 43 percent support this effort to fix the country’s economic situation.

Eighty percent of respondents believe the problems facing banks and financial institutions is the banks’ responsibility; 12 percent felt the problems were the result of economic conditions beyond the banks’ control.

Nearly 60 percent of North and South Carolinians support the federal government providing assistance to homeowners that cannot afford to pay their mortgages.

“There is definitely a sense of skepticism about the economy among North and South Carolinians,” observed Hunter Bacot, Director of the Elon University Poll.  “There appears to be a pervasive sentiment that citizens’ personal plights are being neglected and, as a result, they are growing more disgruntled with measures taken to address the ailing economy.”

North and South Carolina citizens are also averse to labor unions.  Fifty-four percent of residents have an unfavorable opinion of labor unions, while only 28 percent have a favorable opinion of unions. Asked about what side they would take when labor unions and businesses enter into talks or negotiations, 50 percent of residents said they would side with business and 23 percent said they would side with unions.

ASKED OF SOUTH CAROLINA RESIDENTS
Gov. Mark Sanford and Federal Stimulus Funds
305 South Carolinian respondents with a margin of error of +/- 5.7%

South Carolinians are at odds with their governor with respect to his decision about the federal stimulus funds being provided to the state.  Asked if they would advise Gov. Mark Sanford to accept or reject the stimulus money designated for the state, 63 percent of South Carolinians would advise him to accept the money, while only 30 percent would tell him to reject the money.

A majority of South Carolinians – 53 percent – oppose Sanford’s initial decision to not take the federal stimulus money, while 40 support him on it.

RALEIGH, N.C. – A poll of residents of North Carolina and South Carolina shows that a majority thinks the country is on the wrong track, but many approve of President Obama’s job performance.

Elon University released the poll, which shows that 60 percent of residents in the two states think the country is on the wrong track. The poll shows 52 percent approve of the way Obama is handling his job.

Elon released the poll Friday, as Obama’s first 100 days in office come to an end. It has a margin of error of plus or minus 3.9 percentage points. The telephone poll was conducted April 19-23 and surveyed 662 residents in the Carolinas.

Poll director Hunter Bacot says he thinks the poll shows people are frustrated because they’re not seeing the results they expected for the money that’s been spent in the stimulus package.

Governor Bev Perdue will make a workforce development announcement as a part of her JobsNOW initiative that focuses on creating jobs.

Who:               Governor Bev Perdue, North Carolina Community College System President Scott Ralls, North

                        Carolina Commerce Secretary Keith Crisco and WakeMed Sr. Vice President of Human

                        Resources Jeanene Martin

Where:           WakeMed’s Children’s Emergency Department

                        WakeMed Raleigh Campus

                        3000 New Bern Avenue

                        Raleigh, NC 27610    

When:             Thursday, April 16

                        11:30 a.m.

WASHINGTON  – Aiming to assert control over the nation’s economic debate, President Barack Obama on Tuesday warned Americans eager for good news that “by no means are we out of the woods” and argued his broad domestic agenda is the path to recovery.

In a speech at Georgetown University, Obama aimed to juggle his recent glass-half-full takes on the economy with a determination to not be stamped as naive or overly rosy in the face of stubborn problems that linger. He wrapped a summary of actions his administration has taken to steady the limping economy around a fresh overview of his domestic goals.
 
Key Obama aides said in advance of his talk that it would not bring major new announcements. The speech came as Obama nears his symbolic 100-day mark in office, important because that has become a traditional marker by which to judge new administrations.
 
“There is no doubt that times are still tough,” Obama said. “But from where we stand, for the very first time, we are beginning to see glimmers of hope. And beyond that, way off in the distance, we can see a vision of  America’s future that is far different than our troubled economic past.”

Obama’s message was enveloped in contradictory signals about economic health but buttressed by Federal Reserve Chairman Ben Bernanke’s suggestion that the recession may at last be bottoming out.

It was hard to tell from the economic indicators released by the government Tuesday; retail sales fell unexpectedly in March, decreasing by 1.1 percent. At the same time, wholesale prices dropped sharply as the cost of gasoline and other energy plummeted, fresh evidence that inflation appears to pose little threat to the economy.
   
In a speech prepared for students and faculty at Morehouse College in Atlanta, Bernanke, like Obama, talked of flickering signs of improvement, citing recent data on home and auto sales, home building and consumer spending.

But the broader message that a full turnaround might be a long time coming may not be welcome to a weary U.S. public.

Obama said a complete recovery depends on two things: building a new foundation for the U.S. economy and making changes in the political landscape.
 
He said the rules governing the financial system must be brought into the Digital Age – and told Congress “I expect a bill to arrive on my desk for signature before the year is out.”

He also said the economy must be transformed from one less dependent on a risk-obsessed financial sector and more on clean energy, good education and health care costs brought under control.

“We cannot rebuild this economy on the same pile of sand,” he said, invoking a Biblical reference to Jesus’ Sermon on the Mount. “We must build our house upon a rock. We must lay a new foundation for growth and prosperity a foundation that will move us from an era of borrow and spend to one where we save and invest, where we consume less at home and send more exports abroad.”
 
Obama also said the problem is exacerbated by politicians with an outsized interest in scoring points and an impatient media.

“When a crisis hits,” he said, “there’s all too often a lurch from shock to trance, with everyone responding to the tempest of the moment until the furor has died away and the media coverage has moved on, instead of confronting the major challenges that will shape our future in a sustained and focused way.”

“This can’t be one of those times,” Obama said.
 
With the university students and faculty as well as labor, grass roots and political leaders, Obama was trying to show he is focused on the economy after two weeks that, both by design and circumstance, have been dominated primarily by foreign affairs.

Obama put his fledgling presidency on the line when he advocated sweeping new government intervention and spending to right the troubled economic conditions. Shortly after taking office he signed a $787 billion package intended to boost the economy and his administration also has unveiled a slew of other programs aimed to right the troubled home, banking and auto sectors.
 
“Taken together, these actions are starting to generate signs of economic progress,” he said, citing canceled government-sector layoffs, new clean-energy industry hires, a spate of refinancings, and signs of increased credit flows.
   
But, the president said, “2009 will continue to be a difficult year.” He predicted more job losses, foreclosures, and gyrating stock markets.

The president devoted a significant portion of his speech to defending actions he has taken in the face of criticism he has heard mainly from Republicans – but also from some of the more conservative members of own Democratic Party – that he has “been spending with reckless abandon, pushing a liberal social agenda while mortgaging our children’s future.”
 
Not so, Obama said.
 
“The last thing a government should do in the middle of a recession is to cut back on spending,” the president said.
 
As for the long-term, increasingly dire federal budget deficit picture, he said that investments in new industries and economic foundations is crucial to future success and even to reducing the deficit. “Chronically slow growth will not help our long-term budget situation,” he said.
    
The president also defended the massive and unpopular government programs enacted under the Bush administration and expanded under Obama to bail out banks and other financial institutions. He acknowledged that sending money directly to taxpayers might be more palatable – but said it wouldn’t be as effective.

“The truth is that a dollar of capital in a bank can actually result in eight or ten dollars of loans to families and businesses, a multiplier effect that can ultimately lead to a faster pace of economic growth,” Obama said.

RALEIGH, N.C. – Lt. Gov. Walter Dalton today announced the creation of the Small Business Assistance Fund, which will provide low-interest loans to help small businesses that are struggling to access capital during the economic and credit crisis.  The new revolving loan fund, which was conceived by Dalton to protect small businesses and preserve jobs, received $3 million in funding in the budget passed by the Senate last week, and that state money will be further leveraged through funding from Golden LEAF.

“During this economic crisis, we’ve watched as big business received massive bailouts, but not enough attention has been paid to small businesses, which really are the foundation of our economy,” Dalton said.  “As I have talked with small business owners, I have heard loud and clear that more help is needed and providing these loans is a powerful step.  I look forward to working with members of the General Assembly to make sure this funding stays in the final budget plan.”

The Small Business Assistance Fund is modeled after the disaster loan programs the state implemented following natural disasters like Hurricanes Fran and Floyd, which were administered by the Small Business & Technology Development Center (SBTDC).  The Fund will provide loans to small businesses, those with fewer than 100 employees or annual receipts of less than $1 million.  Loans may be used to guarantee commercial loans, as emergency bridge loans and for other purposes related to small business job preservation.  As a revolving loan fund, the interest and loan repayments will go back into the fund, providing capital for additional loans.  Golden LEAF has set aside $5 million for creative ways, such as the Small Business Assistance Fund, to provide much-needed capital to help North Carolina businesses create and retain jobs.

“Golden LEAF is proud to join with Lt. Gov. Dalton to provide financial support for the Small Business Assistance Fund and help North Carolina’s small businesses keep their doors open and our citizens employed,” said Dan Gerlach, president of Golden LEAF.  “This fund will bolster our state’s economy and protect jobs, consistent with our mission to promote the social welfare of our citizens and to provide economic impact assistance to North Carolina’s tobacco-dependent, economically distressed and rural communities.”

Lt. Gov. Dalton has been traveling the state to hear directly from small business owners and to learn how the State can help them.  Small business is an integral part of North Carolina’s communities and its economy.  In the last ten years, small businesses have accounted for 70 percent of the country’s new jobs, and 86 percent of businesses in North Carolina have fewer than 100 employees.  With unemployment statewide at 10.7 percent, keeping small businesses working and employing North Carolinians is more important than ever.

Dalton was joined at the press conference by legislative leaders from the House and the Senate as well as partner organizations, including Golden LEAF, the Small Business Technology Development Center, the N.C. Institute of Minority Economic Development, the National Federation of Independent Business, the N.C. Rural Center and the Small Business Administration.

Sen. Linda Garrou, chair of the Appropriations Committee, worked to secure funding for the Small Business Assistance Fund.  “Including this important program in the Senate’s budget is indicative of our focus on protecting jobs in our communities and creating new jobs over the long haul,” Garrou said.  “This new Small Business Assistance Fund comes at the right time to help North Carolina’s small businesses in a real and tangible way.”

“I am pleased and proud that Lt. Gov. Dalton brought this idea to us and championed the cause of small businesses,” said Sen. Clark Jenkins, who spearheaded the legislation in the Senate.  “This investment demonstrates the Senate’s commitment – and the state’s – to continuing to grow jobs and support our small businesses.”

Rep. Jim Crawford, who has led the effort for the Fund in the House of Representatives, pledged to work to keep the funding in that chamber’s budget.  “Especially when our state is state is facing such difficult economic times, we need to invest responsibly in programs like the Small Business Assistance Fund that create and protect jobs.  I look forward to working with my colleagues in the House to make sure we keep this fund in our budget,” Crawford said.

WASHINGTON  – Federal Reserve Chairman Ben Bernanke said Tuesday there’s been “tentative signs” that the recession may be easing. But he also warned that any hope for a lasting recovery hinges on the government’s success in stabilizing shaky financial markets and getting credit to flow more freely again.

Specifically, the Fed chief mentioned improvements in recent data on home and auto sales, home building and consumer spending as flickering signs of encouragement.

“Recently we have seen tentative signs that the sharp decline in economic activity may be slowing,” Bernanke said in remarks prepared for students and faculty at Morehouse College in Atlanta.

“A leveling out of economic activity is the first step toward recovery. To be sure, we will not have a sustainable recovery without a stabilization of our financial system and credit markets,” he said.

But the Fed is “making progress on that front as well,” Bernanke said, and will keep working to ease financial and credit stresses so those markets operate normally.

To revive the economy, the Fed has cut a key bank lending rate to a record low of near zero and has rolled out a number of radical programs to spur lending to Americans, a key ingredient to turning around the economy.

On that front, the Fed recently plowed $1.2 trillion into the economy in an attempt to reduce interest rates for mortgages and other loans.

Many analysts believe the economy will continue to shrink in the April-June quarter but not nearly as much as it had been – perhaps at a rate of 2 to 2.5 percent.

The economy shrank at a 6.3 percent rate in the final three months of 2008, the worst showing in a quarter-century. Some economists say it fared about as poorly in the first three months of this year, while others expect a 4 to 5 percent rate of decline.

The government releases its initial estimate for first-quarter economic activity at the end of April.

RALEIGH, N.C. — Lt. Gov. Walter Dalton will host a press conference at 10:30 a.m. Tuesday to announce new state assistance for small businesses, which are struggling to access capital during the economic and credit crisis. 

The Small Business Assistance Fund will provide low-interest loans to help small businesses keep their doors open and preserve local jobs.  The new revolving loan fund received $3 million in funding in the budget passed by the Senate last week. 

Dalton will be joined at the press conference by legislative leaders from the House and the Senate as well as partner organizations, including Golden LEAF, the Small Business Technology Development Center, the N.C. Institute of Minority Economic Development, the National Federation of Independent Business and the N.C. Rural Center.

Dalton has been traveling the state to hear directly from small business owners and to learn how the State can help them.  Small business is an integral part of North Carolina’s communities and its economy.  In the last ten years, small businesses have accounted for 70 percent of the country’s new jobs, and 86 percent of businesses in North Carolina have fewer than 100 employees.  With unemployment statewide at 10.7

The press conference will take place in the Legislative Building, 16 W. Jones Street in Raleigh, NC.

WASHINGTON  – President Barack Obama said Friday the economy is showing “glimmers of hope” despite continuing stresses and signaled more steps to brighten the business climate.

Obama commented to reporters after meeting at the White House with members of his economic team, including Treasury Secretary Timothy Geithnera nd economic adviser Larry Summers, as well as Federal Reserve Chairman Ben Bernanke.

“What we’re starting to see is glimmers of hope across the economy,” the president said, although he also noted that the economy is “still under severe stress.”

“Whatever we do ultimately has to translate into economic growth and jobs,” Obama said.

He said there has been a significant uptick in the number of homeowners seeking to refinance their mortgages, which will put money back into their pockets. He said a 20 percent increase last month in the Small Business Administration’s largest program means that small companies, often prized as the backbone of the economy, “are starting to get money.”
 
But Obama also pointed to the high rate of joblessness – which climbed to a 25-year high of 8.5 percent in March – and acknowledged that “we’ve still got a lot of work to do.”

“We’re starting to see progress,” he said, “and if we stick with it, if we don’t flinch in the face of some difficulties, then I feel absolutely convinced that we are going to get this economy back on track.”

Obama said he and his advisers discussed the stability of the financial system and a program to help banks clear their books of bad assets that have made normal lending difficult if not impossible.

Also at the meeting were Christina Romer, who heads the White House Council of Economic Advisers; Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation; Securities and Exchange Commission Chairwoman Mary Schapiro and Comptroller of the Currency John Dugan.

Friday’s meeting was Obama’s first with his economic team since his return this week from an overseas trip partly focused on the global economic slump. He participated in a meeting in London of leaders from 20 of the wealthiest economies and from some of the larger developing economies.
 
The backdrop for the meeting was the still-fragile economy that has begun to show hints of a possible recovery, including a strong profit forecast from Wells Fargo & Co., a drop in claims for unemployment benefits and predictions of solid April sales from several retailers.
 
Several factors are also promising: less jittery stock investors, shoppers and homebuyers, slowly thawing credit markets that were once frozen and stabilizing economic indicators that had been going from bad to worse.

All that has at least one Obama adviser sounding cautiously optimistic.

“There has been a substantial anecdotal flow over the last six to eight weeks of things that felt a little bit better,” Summers, director of Obama’s National Economic Council, said Thursday. “The sense of a ball falling off a table, which is what the economy has felt like since the middle of last fall, I think we can be reasonably confident that that is going to end within the next few months, and we will no longer have that sense of a free-fall.”
  
But Summers, who spoke at the Economic Club of Washington, said it was too soon to forecast how strong the rebound would be and when it would take hold. He also refused to predict how high the unemployment rate will rise before a sustainable recovery begins.

WASHINGTON  – We’re going to be getting a kind of status report directly from President Barack Obama on what’s happening with the economy.

He’ll be having something to say after a White House meeting Friday with virtually all of his top economic advisers. Among them, Treasury Secretary Timothy Geithner, Mary Schapiro of the Securities and Exchange Commission and FDIC Chairwoman Sheila Bair. Federal Reserve Chairman Ben Bernanke will also be there.
 
They’re to give the president a broad update on a range of economic matters, including efforts to stabilize the financial system and jump-start lending.
 
The White House says the meeting will also cover things like cleaning up bank balance sheets and getting banks prepared to weather any future storms.