By Stephen Stirling
Flushing’s Main Street business community may be somewhat insulated from the economic crisis gripping Wall Street, but some ill effects are inevitable, according to store owners and community leaders.
Fiscal anxiety continued to blossom nationwide during the last week, culminating in a $700 billion bailout of the U.S. banking system and the stock market slumping to its lowest level in several years. Though fear about how national economic woes would affect Main Street America have been rampant, Flushing Chinese Business Association President Peter Koo said though some trouble is unavoidable, Flushing’s bustling business hub would survive.
“We’re not immediately feeling the effects, but we know it’s coming,” Koo said. “Most businesses have been preparing. They know, they see that their profits are not going up. We all feel that it’s coming.”
Koo, who owns the Starside Drugs pharmacy chain, said the service industry would be hardest hit as New Yorkers cut out unnecessary expenses like eating out, but the effects would likely not be far reaching.
“The local economy is doing OK because they mostly cater to the local consumers. We don’t have too much luxury stuff here. Flushing is mostly basic service stores,” he said. “Maybe the expensive restaurants won’t have as many customers as they did before because people won’t come out to spend as much, but we only have one, maybe two of those here.”
Steven Huang, who operates a small convenience store on Main Street, said he is worried about how the economic turmoil will affect his business in the long run, but he has not seen any drop off in sales yet.
“I sell a lot more soup. It’s cheap,” Huang said. “I think we will be all right. We have a lot of regular customers. There is a need for stores like this here.”
Another Main Street shopkeeper, Hong Zho Qi, who helps run a Chinese herbal medicine store, echoed Huang’s confidence. Qi said he was more worried about his money in the bank than the store losing business. He said he sends money overseas to relatives, who partially rely on his income.
Koo, who is also at candidate for the 16th State Senate District seat, said a larger danger to Flushing business owners could be tax increases that could be imposed in the future as a result of the economic downturn.
“Businesses have foreseen that we are going to have a downturn, they are prepared for it,” Koo said. “But it would hurt us if taxes get raised more. This is not a good time to increase the property tax, the real estate tax or even the income tax.”
He added: “The government should be cutting waste. The government is just like a family. They have a limited amount of income, they have a limited amount of money to spend. You can’t keep spending what you have wastefully. In the long run, you waste more money that way.”
Reach reporter Stephen Stirling by e−mail at Sstirling@timesledger.com or by phone at 718−229−0300, ext. 138.
