EVERETT — Jay Smith had some simple questions about an economic stimulus package being developed by Congress.
The Snohomish man wondered whether and how the package would help him launch a new business that monitors boats in Everett. Starting a company seems more challenging than ever amid the economic crisis, Smith told U.S. Sen. Patty Murray and Rep. Rick Larsen.
“Can you tell us what kind of barriers you are facing?” Murray said.
“Probably, fear,” Smith said.
“That’s the only thing you need to fear,” Larsen said.
The exchange caused laughter at an economic stimulus roundtable hosted by the two Democratic lawmakers on Wednesday in Everett. Smith’s comments represented the dismal local economy that business people and officials described at the meeting, which drew about 150 participants.
Lyle Ryan, president and chief banking officer of Frontier Bank, said that the Everett-based bank and other local banks weren’t involved in lending subprime mortgages. But the economic downturn that stemmed from the risky loans is affecting most financial firms, he said.
“The impact that we are seeing within our organization — as we deal with customers — has an incredible ripple effect,” he said.
Murray and Larsen said they hope that Congress can pass the economic stimulus package by Jan. 20 — the inauguration day for President-elect Barack Obama. The package aims to create numerous construction jobs to revive the bad economy and to build strong, sustainable infrastructures for the future, they said.
“It’s going to take time, but we are going to work a way out of this,” Murray said.
The government has focused so far on stabilizing the tumultuous financial industry, but it needs to shift its gear to get the economy back on track, Larsen said.
“It’s time to attack this recession,” he said.
Murray and Larsen didn’t offer details about the stimulus package.
Tom Lane, an auto dealer in Arlington, urged the two lawmakers to provide loans for the struggling Big Three — General Motors, Ford and Chrysler — so that they can survive the recession.
“Bankruptcy is not an option for them,” Lane said. “People will not buy vehicles from bankrupt companies.”
The bad economy damages government agencies as well, said Snohomish County Executive Aaron Reardon.
“We are seeing a downturn almost every second,” Reardon said. “We are hammered in construction jobs. We are losing ground in housing.”
The tough economy increases the demand for government services, Reardon added. But local government agencies often don’t have resources to meet the demand.
It’s imperative to invest in work force development, Reardon said, because workers are vying for opportunities in the global economy.
It’s good that the government plans to invest in infrastructure, said Timothy Lee, chief executive officer of Lakeside Industries. Business has been slow for the Issaquah-based construction firm that has an office in Monroe, Lee said.
He hopes that the stimulus package would channel money not only to states, but also to counties and cities, Lee said.
“If you want to have the maximum benefit, it needs to be spread to the local level as well,” he said.
Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com.
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