Amid concern about the current state of the U.S. economy, Shorter College business instructor Gina McDaniel sees one bright spot.

“For the first time, consumers’ eyes are wide open,” McDaniel told those attending the Rome Seven Hills Rotary luncheon at Coosa Country Club Tuesday. “People are asking questions.”

McDaniel was part of a panel invited to the luncheon to speak about the economy. She was joined by fellow Shorter professor Dub Darville, Peter Matthews of Heritage First Bank and River City Bank president Roger Smith.

Much of the talk centered on economic stimulus plans, the state of the local banking industry and challenges to small business owners.

Darville told attendees to familiarize themselves with the stimulus plans and recommended they visit readthestimulus.org, noting that spreadsheets showing what is included in the plan are available there.

He touched on a few programs and dollar figures included in the package, mentioning that $233.5 billion is allocated to the inspector general’s office just to audit the package.

“What we need to look at is what we are trying to stimulate,” Darville said. “The most pressing need is to take a look at job stimulation. Two million people have lost jobs in the last five months.”

McDaniel said she’s disappointed the plans do not adequately address the housing market.

“The housing crisis has such a large impact on the entire economy,” she said. “People aren’t buying homes, which hurts industry, and that also means people aren’t spending to fix up new homes, etc.”

Part of that equation is consumer fear, which is something Smith sees plenty of in his customers.

Much of it is unfounded, he said.

“We’re in the information age,” Smith said. “When housing markets change, people are watching minute-by-minute. People are watching economic news by the hour. This began with the mood of the depositors being apprehensive and fearful. But, we’ve never seen a run on money. A few years back, there was a bank in Dalton that saw its customers lined up, waiting to withdraw all of their money. Nothing good comes from that. What has happened is customers are making sure their money is insured by FDIC. That has slowed down somewhat now, partly due to FDIC limits.

“On the loan side,” Smith continued, “there’s concern and confusion from customers. We get asked, ‘Are you lending money?’ The answer is yes but it’s going back to basics. For instance, we’re seeing down payments and other requirements. All these basics that we all know are part of sound lending practices are back.”

Those lending practices affect small business owners, whom Matthews says are “all risk takers,” and are faced with numerous challenges. Matthews, who formerly served as the local director of the Small Business Development Center, listed the economic downturn, skyrocketing health insurance costs and global competition as new challenges to today’s entrepreneurs.

Still, many of the answers to problems faced by these entrepreneurs are things they can control.

“I found in 15 years of working with small business owners, they believe most problems are external,” Matthews said. “I try to get people to look inside at things such as strategic planning, cost controls and pricing strategies.”

Matthews added that some businesses are proving to be able to weather the storm and even prosper. He listed real estate auction companies, movie theaters, franchises (which offer a sense of security because an owner is using a proven method) and funeral homes.

McDaniel also mentioned that automobile service sectors are thriving because, instead of purchasing a new vehicle, people are simply paying to maintain their current one for a longer time period.

The Troubled Asset Relief Program dominated much of Tuesday’s conversation, though.

“There’s enough blame to go around,” Darville said of the bailout package. “Honestly, the American people share some of that blame, demanding more and more. We seemed to forget 1929 and the 1980s’ savings and loan scandals. We all know what goes up, must come down. I don’t think anyone expected it to go down so fast. People want to know where that (TARP) money has been spent.”

McDaniel echoed, saying “Americans want to know how companies are going to be held accountable. Taxpayers are done with the blank check. I’m glad consumers are asking the question, because it’s their tax dollars on the line.”

Smith said for a bank to receive funds from the program, it has to “be in good financial shape.” Many banks, including River City Bank, have applied for funding but have not decided if they would accept it if approved.

“From our position, we don’t need” TARP funding, said River City CEO Eddie Wilson, who attended the event but was not on the panel. “We’re a well-capitalized bank and I think that the other banks around here are, too. The challenge is, do you accept it as an insurance policy?”

As much as the topic is being discussed here, it also is an important topic abroad.

“We’re starting to see more and more reports that foreign governments are opposed to this because it scares them,” Darville said. “If it scares them, then we definitely should be afraid. When foreign governments doubt the ability to pay back in a timely fashion, that’s not good for the world economy.”

Still, caution is being used, Darville said.

“What we are seeing is those in charge are saying ‘Yes, we need to do something and time is of the essence, but it is not so much of the essence that we are willing to shoot ourselves in the foot.’”

Originally appeared on HometownHeadlines.com in 2009