Election uncertainty in Ohio River Valley

updated 12:28 p.m. ET Sept. 18, 2006

FALMOUTH, Ky. - Used boots fetch $3 and old salt-and-pepper shakers bring in a buck at a makeshift flea market along Highway 27, presumably not what President Bush and Republicans have in mind when they herald a vibrant economy.

Times are "very good for the rich and very, very bad for the poor" who "can't afford to live," laments Larry Mitchell, 43, a now-and-then merchant peddling his wares recently in a submarine sandwich shop parking lot. He says the middle class is "having a hard time."

In the Ohio River Valley, where people decry high gas prices, stagnant wages, lost jobs and factory closures, many don't buy the claim that the economy is humming along.

Seven weeks before the midterm elections, the gulf between Bush's perceptions and that of voters form the political backdrop across the country as well as in a region with several competitive House races. This area typically gets left out of national boom times and usually feels the pinch more than others during slowdowns.

Here and elsewhere differing views on the economy could hurt the GOP's efforts to retain control of the House and Senate this fall, and give voters reason to put Democrats in charge instead.

Living paycheck to paycheck
In Washington, the economist in chief encourages GOP candidates to embrace the economy as a stellar accomplishment. "I'd say 'Look at what the economy has done. It's strong. We've created a lot of jobs,'" Bush said recently.

So, Republicans hit the campaign trial with a rallying cry that 5.7 million jobs have been created since August 2003. They cast Democrats as tax-raisers who would bring economic gloom and doom.

Interactive 2006 key races The races to watch.

"President Bush and the Republicans are out of touch with Americans who are living paycheck to paycheck and are struggling to make ends meet," House Minority Leader Nancy Pelosi, D-Calif., counters.

Her rank-and-file portrays an economy under Republicans that leaves behind the poor and hinders the middle class. Democrats also complain about a soaring federal deficit and Bush's tax cuts "for the wealthy" during wartime.

Vital stats
Nationally, the economy grew strongly at the beginning of this year but it has slowed, reflecting the toll of high energy prices and two-plus years of interest-rate pain from the Federal Reserve. Gasoline and other energy prices now are falling and the Fed is expected to stay on the sidelines for a while after halting its rate-raising campaign last month.

Economic growth through the rest of the year is expected to stay relatively subdued. However, most economists don't believe the economy is in danger of falling into recession.

Hiring, which has been uneven this year, picked up in August, pulling the nation's unemployment rate down to 4.7 percent. At the same time, wages are rising. However, inflation has taken a bite out of workers' paychecks and put the squeeze on some family budgets.

The mixed picture could have consequences for Republicans who control Congress.

"They could very well be held accountable on the economic front," said Robert Shapiro, a public opinion expert at Columbia University in New York.

MORE FROM POLITICS

Politics Section Front

Obama: It’s Senate’s turn on health care Republicans seek a path to revival   GOP says Dems put agenda ahead of country 2010 elections: Democratic fears, GOP hopes   NYC mayor not humbled by close election Cheney blasts probe of CIA interrogations Majority leader: House will pass health bill Obama praises bravery after base attack Wash. state OKs gay partnership law Obama: U.S. must reverse course with Indians Politics Section Front   Add Politics headlines to your news reader: