Rolling thunder in the nation's manufacturing sector came to town last week when the owners of GST Steel Co. sought bankruptcy court protection and announced plans to close the local plant. The closure will mark the end of a steel company with local ties dating all the way back to 1888. The most recent Kansas City area employment report remains stuck at an eye-poppingly low 2.9 percent. But that big-picture perspective offers little solace for working folks without a job. It's a depression when you lose your own.
Most economists downplay talk of recession.
They talk reassuringly about how the broad economy remains remarkably strong, despite declining consumer confidence and obvious weakness in the manufacturing sector. They talk hopefully of an economic rebound fueled by interest rate cuts and talk of tax breaks in the second half of the year. Business observers also note that behind each layoff announcement lies a set of facts that are unique to each company. In the case of GST, executives blamed the low-cost dumping of imported steel, surging energy costs and the high cost of labor. N.C. So the folks at GST are now added to the lengthening list of layoff notices.