---
THE UNIVERSITY DAILY KANSAN
THURSDAY, NOVEMBER 6, 2008
NEWS
5A
ECONOMY
Money tight for local businesses that import goods
Decreasing value of U.S. dollar has forced owners to cut back on expensive products and raise prices of others
BY ADAM SCHOOF editor@kansan.com
editor@kansan.com
When Mark Swanson flew to New York City to negotiate with European vendors for his clothing and accessory business, he couldn't buy half of what he had the previous year.
"It was cool stuff, but it was way too expensive," Swanson said.
Since the value of the U.S. dollar has decreased, the cost of importing goods has increased. This has affected many local businesses that import products, such as Swanson's store, Hobbs. Swanson said that he imported 60 to 70 percent of his inventory, and that the price of European products have increased by about 30 percent in the past
year.
"There's no way we're buying like we did," he said.
Geri Riekhof, owner of the kitchen accessory store The Bay Leaf, said she, too, had to cut back on her foreign imports. She said the economic climate had prevented her from stocking her store with more ornate pieces, such as Italian ceramics.
Riekhof's brother, an importer in Chicago, helps her buy directly from the manufacturer instead of relying on a wholesale distributor. Even with this advantage, though, Riekhof said importing was still too expensive.
omy. That means customers have fewer choices and less competition
She said she believed customers wouldn't pay for the more expensive products in a struggling ecom-
tower choices and among businesses to lower prices.
Riekhof said she looked for products made in America and Canada first because the price of imports had risen, she said it helped her make the most of her money.
Marché sold was imported.
"I can't keep the prices we had a year ago and pay our bills. This could be a long run.I don't know when this economic crisis will end."
One Lawrence business significantly affected by import prices is the European food market Au Marché, owned by Lora Wiley. Wiley said 99 percent of what Au
LORA WILEY
Owner of Au Marche
prices we had a year ago and pay our bills," she said. "This could be a long run, 1 don't know when this economic crisis will end."
and pinching customers' wallets, but said she was more worried about the future of her business. Prices have gone up for Wiley across the board, and she has had
She said she had reservations about raising prices
to raise her mark-up.
Regular customers at Au Marche are feeling the crunch.
"I come in every month or so just to look at prices," Jessie Johnson, Lawrence resident and Au Marché customer, said. "I've been buying less foreign stuff because it's so expensive. You have to be choosy now and think, 'Do I really need this?'"
Johnson said price had been her primary concern when making purchases.
John Keating, associate professor of economics, said people would continue to buy imported goods as long as they had the money because there weren't many alternatives in the market.
Keating said the dollar could
rise because of signs that the economy was turning around, such as Warren Buffet's $5 billion stake of Goldman Sachs. This would strengthen the dollar and make imported goods more affordable.
Keating also said having a wholesale distributor, or middleman who can absorb price changes, could help keep prices of imported goods from fluctuating. Research suggests that the closer a purchase is to the original manufacturer, the more turbulent the price will be, Keating said.
Wiley uses a distributor to get her imported goods and agreed with Keating that it was better to have a middleman in the mix.
California passes amendment that bans same-sex marriage
NATIONAL
Edited by Jennifer Torline
BY LISA LEFF
ASSOCIATED PRES
Married same-sex couple Stuart Gaffney and John Lewis watch election returns during a rally against California Proposition 8 in San Francisco Tuesday. They campaigned to reject ballot measure Proposition 8 that would ban same-sex marriage in California. The proposition passed, reversing the California Supreme Court decision that had made same-sex marriages legal in June.
Associated Press
LOS ANGELES — Voters put a stop to same-sex marriage in California, dealing a crushing defeat to gay-rights activists in a state they hoped would be a vanguard and putting in doubt as many as 18,000 same-sex marriages conducted since a court ruling made them legal this year.
The gay-rights movement had a rough election elsewhere as well. On Tuesday, amendments to ban gay marriage were approved in Arizona and Florida, and Arkansas voters approved a measure banning unmarried couples from serving as adoptive or foster parents. Supporters made clear that gays and lesbians were their main target.
But California, the nation's most populous state, had been the big prize. Spending for and against Proposition 8 reached $74 million, the most expensive social-
issues campaign in U.S. history and the most expensive campaign this year outside the race for the White House. Activists on both sides of the issue saw the measure as critical to building momentum for their causes.
"People believe in the institution of marriage," Frank Schubert, comanager of the Yes on 8 campaign, said after declaring victory early Wednesday. "It's one institution that crosses ethnic divides, that crosses partisan divides. ... People have stood up because they care about marriage and they care a great deal."
With almost all precincts reporting, election returns showed the measure winning with 52 percent of the vote. An estimated 2 million to 3 million provisional and absentee ballots remained to be tallied, but based on trends and the locations of the votes still outstanding, the margin of support in favor of the initiative was secure.
Leaders of the No on 8 campaign said they were not ready to concede.
Exit polls for The Associated Press found that Proposition 8 received critical support from black voters who flocked to the polls to support Barack Obama for president. About seven in 10 blacks voted in favor of the ban, while Latinos also supported it and whites were split.
"Because Prop 8 involves the sensitive matter of individual rights, we believe it is important to wait until we receive further information about the outcome," Geoff Kors, director of Equality California, said in a statement Wednesday.
Californians overwhelmingly passed a ban on same-sex marriage in 2000, but gay-rights supporters had hoped public opinion on the issue had shifted enough for this year's measure to be rejected.
"We pick ourselves up and trudge on," said Kate Kendell,
executive director of the National Center for Lesbian Rights. "There has been enormous movement in favor of full equality in eight short years. That is the direction this is heading, and if it's not today or it's not tomorrow, it will be soon."
The constitutional amendment limits marriage to heterosexual couples, nullifying the California Supreme Court decision that had made same-sex marriages legal in the state since June.
Similar bans had prevailed in 27 states before Tuesday's elections, but none were in California's situation — with about 18,000 gay couples already married. The state attorney general, Jerry Brown, has said those marriages will remain valid, although legal challenges are possible.
Despite intense disappointment, some newlyweds chose to look on the positive side, taking comfort that millions of Californians had voted to validate their relationships.
TEACHFORAMERICA
Full salary and benefits.
All academic majors.
www.teachforamerica.org
WHY DIDN'T I JUST GET A FLU SHOT?!
Protect yourself against the flu by getting vaccinated. Student Health Services is committed to your health by offering flu clinics open to all KU students, faculty, staff and retirees (ages 18 and over).
Go ahead and compare.Not only can students get billed for the vaccine instead of paying on the spot, we have some of the LOWEST PRICES IN TOWN!
Flu Shot - $15*
Nasal Mist Flu Vaccine - $ 10^{+} $(ages 18-49;subject to availability)
Can't make it a clinic? You can also get vaccinated at Watkins Memorial Health Center by calling 785.864.9507 to make an appointment. For the full schedule of flu clinics, visit www.studenthealth.ku.edu.
KU
STUDENT HEARTS
ACCEPTIONS
Watkins Memorial Health Center
1200 Schwegler Drive • Lawrence, KS 66045
(785) 864-9500 • www.studenthealth.ku.edu
*Contributing to Student Success*
- Only current KU students are eligible to be billed for this service. All others must pay at time of service. Medicaid and Medicare are not accepted.