Economic jitters hit home

For most of us, the economy is a thing that happens Out There, with the ill effects of a downturn hitting Someone Else.

At our homes and jobs, work continues, chores must be done, paychecks come in, money goes out, all pretty much according to routine. That's generally true unless you're an unemployed or under-employed person searching to resume a career.

But when unemployment is stuck at 9�percent nationally, when the federal government's ability to pay its debts is questioned, when normally reliable European countries falter and face economic-tinged riots, when the stock market suffers its biggest one-week loss since 2008, you start to think:

Maybe the economy is about us, after all.

One sign that ordinary Americans are responding to the news: Gallup's economic confidence index is at a level not seen since the 2008-2009 recession, meaning that even people with jobs are pessimistic about the direction of the economy.

Consumers' perceptions are important because consumer spending makes up nearly 70 percent of the nation's economic activity, said University of Nebraska-Lincoln economics professor John Anderson: "If you get people reluctant to consume, that'll have an impact on employment. You're producing less and employing fewer people."

People who foresee a risky future also will hold on to jobs that contribute less to the economy, resulting in underemployment. "They'll hunker down and take the sure thing even though they may be capable of doing something else," Anderson said.

Consumer confidence also directly affects the stock market, said Iowa State University economist Peter Orazem. Kohl's, the department store chain, "has lost $1.3 billion because of nervousness," he said.

Midlanders are paying attention. One opens a new shop but takes pains to avoid debt. Others scrimp on entertainment, choose cheaper colleges for their kids or consider pushing back retirement dates. Another slogs through two years of unemployment. A few expect economic collapse; most hope for a turnaround.

And for all of them, the economy is a very real part of everyday life. Here's one person's story:

Noah Clark, 25, Stanton, Iowa

A year ago, Clark left behind a steady job as the IT director of a Minnesota agribusiness company to return home to Iowa — and into the sometimes-unpredictable world of freelancing. He's found work managing projects for startup and biotech firms and some event planning work. So far, it seems the supply of short-term jobs isn't drying up. In fact, Clark feels he's in a good spot to weather a bumpy economy as more companies opt to hire short-term workers on contract rather than full-time employees.

"The biggest change is how I view my career," he said. "The instability in the markets can lead to downsizing and that kind of thing, and I feel freelancing creates more stability."

He hasn't made changes in day-to-day spending or saving but suggested that elected officials start thinking differently."We're going to have to raise taxes and spend smarter. It's going to have to come on both sides."

Does he think that will happen? "Certainly not." — Erin Golden

Other stories:

Chuck Behr, 62, Hamburg, Iowa
Heather McDonald, 23, Lincoln
Maddie Fennell, 46, Omaha
Kitty O'Kane, 29, Omaha
Ray Aguilar, 63, Grand Island
Bob Hancock, 58, Omaha
Bill and Karen Johnson, 69 and 63, Shelby County, Iowa
John Lehr, 50, Omaha
Kristin Lubbert, 26, Omaha
Linda Pelnar, 43, Omaha
Kelsey Riewer, 27, Omaha
Eric Stevens, 39, Omaha
Nick Cusick, 60, Lincoln