Crisis stings Portlanders

Bleak economy forces belt-tightening, poll finds

By Steve Law

The Portland Tribune, Oct 2, 2008, Updated Oct 30, 2009 (16 Reader comments)

(Clockwise from top left) Harriet Bing, owner of a small mortgage brokerage in Southeast Portland; Benny Ma, owner of a Chinese restaurant in Southeast Portland; Tammy Bittler, part-time tutor living in Southeast Portland; Norman Yoshida, Lewis & Clark College professor nearing retirement.

L.E. BASKOW / TRIBUNE PHOTOS

Portland-area residents have moved beyond worrying about the price of gas to fearing for their livelihoods, their mortgages, and their ability to pay for medical treatments, according to a new Portland Tribune/Fox 12 poll.

Pollsters from Davis, Hibbitts & Midghall Inc. interviewed 400 people from Multnomah, Washington and Clackamas counties Sept. 25 through Sept. 27, and found widespread economic anxiety and skepticism about a taxpayer bailout of Wall Street financial companies.

Two-thirds of respondents agreed with a pollster’s statement that “the economy is a mess and needs to be fundamentally and radically reformed,” while about one-third opposed dramatic changes and said the economy has problems but is essentially sound.

Despite the strong sentiment for change, residents, by a 3-to-1 margin, expect a taxpayer rescue plan will do them more personal harm than good. Only 14 percent expect they’ll be personally aided by a federal bailout, while 42 percent expect to be personally harmed; 33 percent said it will make no difference for them.

“I think the people getting the aid are the ones who really caused the problem,” said Harriet Bing, a mortgage broker from Southeast Portland who was contacted by pollsters. Members of Congress are seeking political cover and don’t really grasp the complexities of the problem, she said.

Click here to see a chart of the poll’s highlights.

A large share of area residents told pollsters they have experienced significant disruptions from the economic turmoil.

One in five of those polled said someone in their household has delayed routine medical care because of the shaky economy. One in six said a household member’s work hours have been cut. One in nine said a household member had to delay retirement.

Most people reported even more belt-tightening than they cited in a May public opinion survey, said Portland pollster Adam Davis. Three-fourths said they are driving less, and half said they will turn down the thermostat and are cutting back on vacations.

“We have significant numbers of people who have changed their habits and continue to do so,” Davis said. “And compared to four months ago, they’re doing more of these things.”

The poll also shows Democrats – and Democratic presidential candidate Barack Obama – reaping political gain from the economic concerns. When asked if economic turbulence might sway their vote for president, 26 percent of area residents polled said they’re more likely to vote for Obama, and 13 percent said they’re more likely to vote for John McCain, the Republican candidate.

One out of every nine homeowners polled said they are worried about making their future mortgage payments. One in eight said they are worried their home’s value might fall below the amount they owe on the mortgage.

Six in 10 respondents agreed with a statement that the Wall Street crisis is the “fault of the lending industry for luring buyers into bad decisions.” Nearly three in 10 disagreed, preferring a statement that “it’s the borrowers’ own fault for taking out loans beyond their ability to pay.”

The poll’s margin of error is 4.9 percent, meaning results might be off in either direction by that amount.

Bing, 62, is one of many poll respondents who reported delaying medical treatments. She had a stroke two years ago, and recently reduced the dosage of her stroke-prevention medicine because of money concerns.

“I went down to a half a dose for over a month because I was afraid I couldn’t pay for it,” Bing said.

Bing worries that she and her employees could lose all health coverage if she can’t keep her struggling real estate company afloat.

The new poll shows residents’ concerns have shifted to bread-and-butter issues and away from quality-of-life matters since the May Portland Tribune/Fox 12 poll, also done by Davis, Hibbitts & Midghall Inc.

Fewer people listed the cost of food and gasoline, or concerns about traffic congestion and crime, among their top two concerns. Those took a back seat to job creation and economic development.

Benny Ma nursed his money for the first nine years of operating Yummy Garden, his Chinese restaurant in Southeast Portland. Finally he was able to buy the restaurant building last December, partly by pulling equity out of his home via a second mortgage. “I’m so lucky I got qualified from the bank,” Ma said. “If I do it this year, I won’t get approved.”

But business at his restaurant fell 30 percent the first six months of this year, as regular customers fretted about the cost of gasoline and found it more economical to buy groceries instead of eating out.

Ma wasn’t making any money, but at least he was keeping the business running and paying the bills. Lately, though, it’s gotten worse, and business is down about 50 percent, he said.

Ma, who also participated in the poll, said he’s struggling to make loan payments on his restaurant property while holding onto his home after taking out the second mortgage.

Tammy Bittler is one of many residents who told pollsters of rising economic insecurities.

“My husband’s company keeps talking about laying off people,” she said. “We’re not driving much; we’re extra cautious about making a trip to a store.”

The Southeast Portland couple has faced more economic stress after their 27-year-old daughter suffered a traumatic brain injury in a gym accident, and moved back home in March.

Their daughter’s new employer considers the brain injury a “pre-existing condition,” and won’t provide health insurance coverage for another four months. Meanwhile, her parents are shouldering the hospital and other health care costs, while also helping their 17-year-old daughter pay tuition at Southern Oregon University.

Bittler took on more tutoring clients to help pay the bills, though many can’t pay cash right now. “I do a lot more bartering because people just can’t afford to pay me.”

Norman Yoshida, 65, an English professor at Lewis & Clark College, figures he’s in far better financial shape than most people. The family’s Southwest Portland home is paid off, and Yoshida thinks he still can retire as planned next year. But Yoshida’s 401(k) fund lost $14,000 in value the last few months, and he needs to use that in retirement.

“Hopefully there will be enough of it,” he said.

Yoshida is putting off visiting his mother, now in her 80s, because a trip to Hawaii is beyond the family budget right now. He also is putting off periodontal surgery, because he’d have to pay half the $4,000 costs not covered by insurance.

Yoshida is more concerned about the financial prospects for his four children, who marvel at the low price their parents paid for their home.

“I just kind of worry about their futures,” Yoshida said. “Their lifestyles are going to be dramatically affected by what’s going on now.”

stevelaw@portlandtribune.com

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