Economist says national credit crunch hasn't hit home yet in Kokomo

Things are normal.

While that may not sound like news, it is when you stop to consider the great concern of the American people in regards to the national economy and news that purse strings are tightening everywhere.

But in Kokomo, people are still going to the movies, eating out and shopping.

"People still got to eat," said Lisa Duncan, co-owner of Ducky's Family Restaurant.

She said the economy is a concern but it hasn't adversely affected her business.

"We really haven't seen a big decline in our sales. Everything's been standing pretty steady," she said.

Morton Marcus, an independent economist formerly with Indiana University Kelley School of Business, thinks he knows why.

"Many people have not yet had any effect of the recession or the credit crunch except in their heads. Many people still have their jobs, and are being paid as they were a month ago or even a year ago," Marcus said.

While sales continue, shopping trends have changed, said Mike McDonald, store director for the Kokomo Meijer.

"People are very conscious of saving money on the items we're advertising," McDonald said. "The shopping trend of browsing, you don't see that as much right now."

"They're waiting 'til that Super Saturday," he said of the superstore's weekly sales ad.

While sales in areas such as clothing and electronics remain steady, grocery sales are thriving, he said.

"At this point, we haven't experienced any major downside," he said. "I don't think the people will go over and above, but I don't think we'll see a decline."

He expects business as usual come the holiday shopping season.

"I think with Thanksgiving and Christmas ads coming out, we'll continue to see our regular business," he said.

There's another reason people may be investing in local activities such as catching a movie, bowling and eating out, Marcus said.

"People move away from more expensive recreation activities to less expensive activities," Marcus said of harsh economic times. "Instead of taking a cruise or an extended trip ... they seek entertainment around the house where they don't have an overnight trip.

"It's a question of substitution of home-based activities as opposed to being out and away from the city," he explained.

There's also a positive side to sticking with routine, as maintaining a schedule can be good psychologically, Marcus said.

"[It can] ease some of that concern," he said.

Many area residents still frequent Martino's Italian Villa as part of their weekly routines, said owner Mike Martino.

Having been in business more than 25 years, Martino has acquired quite a few regulars. And despite job losses and economic changes, they keep coming.

"It's tradition," he said. "Part of it is just their schedule."

He doesn't expect there to be a big change in his field, but knows others may suffer.

"They can't give up everything," he said. "People have to keep things as normal as they can."