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Homeless struggle in Atlantic City Homeless struggle in Atlantic City
(about 6 hours later)
By Matthew Price BBC News, New York By Matthew Price BBC News, Atlantic City
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Atlantic City homeless shelter Bill Southrey shows Matthew Price around the Atlantic City shelter
It is wet, windy, and cold when I arrive in Atlantic City.It is wet, windy, and cold when I arrive in Atlantic City.
So dreary in fact that the tall downtown casinos on which this city's economy is built remain hidden by the drizzle until my car is almost right up alongside them.So dreary in fact that the tall downtown casinos on which this city's economy is built remain hidden by the drizzle until my car is almost right up alongside them.
The rain drips off the noses of the fake Roman statues at Caesar's Palace casino complex.The rain drips off the noses of the fake Roman statues at Caesar's Palace casino complex.
Atlantic City is suffering, and not just because of the weather.Atlantic City is suffering, and not just because of the weather.
Cristina Sanford knows that only too well. She is 21 years old, and already has three children.Cristina Sanford knows that only too well. She is 21 years old, and already has three children.
Last September she lost her job as a cleaner. Last September she lost her job as a cleaner. She spent several hundred dollars on training to become a casino card-dealer, but when her training had finished, the recession was in full swing, and the casinos were cutting back.
She spent several hundred dollars on training to become a casino card dealer, but when her training had finished the recession was in full swing and the casinos were cutting back. She gets $424 (£292) a month in cash from social security and $584 a month in food stamps. Her rent was $900 a month. So she is now homeless, and relies on the Atlantic City Rescue Mission for a place to stay.
She gets $424 (£292) a month in cash from social security and $584 a month in food stamps but her rent was $900 a month. Does she see any sign that things are getting better? "No I don't. I think it's getting worse. Everybody's getting laid off."
So she's now homeless, and relies on the Atlantic City Rescue Mission for a place to stay. Falling donations
Does she see any sign that things are getting better? Homelessness is rising across the United States. According to the US Conference of Mayors 25 of the largest cities here reported an average 12% increase in homelessness in 2008 compared with 2007.
"No I don't. I think it's getting worse. Everybody's getting laid off." Atlantic City's glossy exterior gives little hint of an economy in trouble.
Homeless suffer
Homelessness is rising across the United States. According to the US Conference of Mayors, 25 of the largest cities here reported an average 12% increase in homelessness in 2008 compared to 2007.
My wife and I live pay-check to pay-check Stephen Irish, teacher Spring brings changes in New York
In 16 cities there were more homeless families. A lack of affordable housing, poverty and unemployment all contributed to the problem.In 16 cities there were more homeless families. A lack of affordable housing, poverty and unemployment all contributed to the problem.
On top of that, those who try to help the homeless are suffering.On top of that, those who try to help the homeless are suffering.
Bill Southrey runs the Atlantic City Mission where Cristina Sanford is staying. He says the organisation is already about $46,000 behind in donations this year. Bill Southrey runs the Atlantic City Mission where Cristina Sanford is staying. He says the organization is already about $46,000 behind in donations this year.
Their stock-market investments have also lost value. "We're not at crisis at this point, but it could all vanish in an instant," says Mr Southrey. Their stock market investments have also lost value. "We're not at crisis at this point, but it could all vanish in an instant," says Mr Southrey.
Struggling Suffering spreads
It is not, however, just the vulnerable who are in trouble. It is not however just the vulnerable who are in trouble.
"My wife and I live pay-check to pay-check," Stephen Irish tells me. He is one of a growing number of middle class Americans who are experiencing economic difficulties. "My wife and I live pay-check to pay-check," Stephen Irish says. He is one of a growing number of middle class Americans who are experiencing economic difficulties.
He and his wife have no children, but they have five jobs. Their combined income is $60,000 a year.He and his wife have no children, but they have five jobs. Their combined income is $60,000 a year.
"We're struggling," he says. "We're struggling," says Mr Irish.
Mr Irish teaches public relations, management, and marketing in New Jersey. He believes one of the problems has been America's desire for short-term riches.Mr Irish teaches public relations, management, and marketing in New Jersey. He believes one of the problems has been America's desire for short-term riches.
The students would "take a six week real estate course, rather than a long term education. They wanted 'make-a-lot-of-money' careers." The students would "take a six week real estate course, rather than a long term education", he says.
"They wanted 'make-a-lot-of-money' careers."
Discretionary spending
One of the big problems in Atlantic City is that it relies on one industry - gambling.One of the big problems in Atlantic City is that it relies on one industry - gambling.
Betting on betting is fine in the good times, but when things turn sour, the system declines. Atlantic City's relies heavily on the gambling industry.
Betting on betting is fine in the good times, but when things turn sour the system declines.
The area is trying to diversify, to make Atlantic City a destination for tourists interested not just in gambling. Now is not a good time to try and change however.The area is trying to diversify, to make Atlantic City a destination for tourists interested not just in gambling. Now is not a good time to try and change however.
"The impact of the economy has been more daunting here," says Linda Kassekert, the chair of the New Jersey Casino Control Commission.
"People are careful as to where they spend their discretionary dollars. Probably discretionary spending will be the last thing to come back."
Even if the economy is seeing some glimmers of hope, as some suggest, Atlantic City won't see them for some time. "There is little we can do but weather the storm," Ms Kassekert adds.
Economic locomotives
Some fear New Jersey's storm will not clear soon.
The state was once a manufacturing powerhouse. It lost out to other less unionised areas of the country and the world, but re-invented itself in the 1980s and became a national player in the business services and leisure sector.
Dr James Hughes, an economist at New Jersey's Rutgers University, is not sure how it can re-invent itself again.
"The question is what are the new economic locomotives? It's the big question of our era," he says.
As far as Dr Hughes is concerned there are no signs that an economic transformation is under way.
"I don't see any transformative investment being made. I don't see any investment to create transformative industries. Nor anything to encourage private sector investment."
New Jersey's problem, and that of Atlantic City, is how to tap into the new wave of growth industries that will spring up out of this recession.
There will be winners and losers in the grand geographical and social upheaval the US is currently going through.
The hope for Atlantic City is that it will be on the winning side. If it is not, many here fear the long-term consequences for people like Cristina Sanford and her three children.
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