Economic fears paralyzing

ASHLAND, Neb. — It's the uncertainty about the U.S. economy that's so paralyzing, the owner of a Lincoln manufacturing plant said Thursday, after a meeting in which Nebraska's congressional delegation attempted to explain Washington's struggles to pare the federal debt.

Nick Kusick is co-owner of IMSCORP, which employs about 200 people in the manufacture of turf equipment and other products. He's a lifelong entrepreneur who's comfortable with risk, but lately he finds himself reluctant to roll the dice.

He and his partner have put research and development into new products on hold. He's hesitant to hire more workers.

"The uncertainty becomes debilitating," he said. "It's pretty easy to say 'no.' "

Kusick was among about 500 people who paid $95 each to participate in a legislative summit jointly sponsored by the chambers of commerce representing Omaha, Lincoln, Bellevue and Nebraska.

The event at the Strategic Air & Space Museum near Ashland, Neb., featured appearances by Sens. Ben Nelson, D-Neb., and Mike Johanns, R-Neb., and Reps. Lee Terry of Omaha and Jeff Fortenberry of Lincoln, both Republicans. Rep. Adrian Smith of Gering participated via Skype video.

Omaha retiree Ken McKeone said he paid to attend because of his questions about the way the situation has been handled.

"I'm scared to death," said McKeone, 66, who retired from his ATM and credit-card equipment business 11 years ago.

He said he doesn't understand Washington's unwillingness to raise tax rates for the rich. "They say they don't want to raise taxes on the job creators — but they're not creating any jobs."

The members of the delegation each offered his take on recent events on Washington and on Wall Street, such as the last-minute agreement to raise the U.S. debt ceiling; the decision by Standard & Poor's to downgrade the U.S. bond rating; and the continuing ups and downs of the stock market.

They generally agreed that the federal government needs to cut spending and reduce the federal debt. But they parted ways on other issues.

Nelson, for example, decried the "political games" that he said put the country on the brink of default before an agreement on the debt ceiling was reached. He blamed "the spectacle" for Standard & Poor's decision.

Johanns, however, said he would offer no apologies for the "messiness" of the debate. It opened discussion on an issue that needs to be addressed — how the U.S. government's "spending engine" is outpacing the economy's ability to pay.