“No We Can’t”- The Populace of the Diamond District Wants Greater Focus on Economy

By Michelle Consorte
Contributed reporting by Andras E. Kovacs and Joanna Kurylo

NEW YORK, Nov. 2 — In the heat of the midterm elections, workers in Manhattan’s diamond district call for economic relief and more jobs.

“We are spending too much money on everyone, and it’s putting us in dept. We can’t keep on helping everybody else. We need to help ourselves first,” said Scott Erickson, a bustling businessman making his way through the diamond district on the evening of Election Day.

This was the sentiment of most people hanging around the neighborhood. Enclosed within tall, dark buildings are thousands of shining diamonds, but very little light emanating from hope.

“The recession hit the diamond industry hard. And it’s because, essentially, the middle-class got wiped out” explained Mike Abramov, while trying to entice passer-bys with his gleaming wares. “All these stores here, you see,” he gestured broadly to the line of grimy buildings covered in diamond advertisements, “just a year ago, most of them were closed. In 2008 a lot of the people here just went out of business overnight.”

Indeed the economic downturn was the talk of the diamond-encrusted town. It’s no wonder, since when the economy takes a turn for the worse, spending on luxury items, like diamonds, is the first to go.

According to a July 2010 article by USA Today: “Luxury spending slid 7.8% last year to $10.1 billion. It's bounced back up for the first five months of 2010. But even affluent customers continue to seek out discounts, bargains and sales, says Tim Murphy, chief product officer at MasterCard. In a recent MasterCard poll, some 64% of all consumers said they were shopping sales. ‘A few years ago, you'd just market access to the affluent. Now, you must market access — with a discount.’”

In issuing blame for the U.S.’s financial troubles, China was a prime target. Apparently, people are increasingly angered by the fact that a good portion of the world’s manufacturing is in the People’s Republic.

“China is a big part of the problem: all the work is there, none is here” said Abe Blumenberg one of the seemingly idle workers in the district, playing on his mobile phone in front of the door of a store.

Others highlighted more specific malignant aspects of the U.S. - China economic relationship. Mr. Abramov explained to us that “China is going to be a problem. We are indebted to them. And, you know, it’s simple. If you owe me something, I’m going to do something to make you pay me back.”

Mr. Erickson, also reinforced this notion, with his brief comment: “There is so much debt-- way too much,” while firmly resisting the wooing of the diamond sellers.

According to a Washington Times article from May 2010, while China officially qualifies as the second largest creditor to the United States, after Japan, holding approximately $750 billion of the government debt, the actual figures may be as high $1.7 trillion.

Several of those interviewed offered solutions for the country’s financial woes.

“Production of everything is everywhere else. We need more production here to get more jobs here.” emphasized Jacob Selznick, a diamond seller.

Abe Blumenberg echoed this idea, “Production of big things, small things, everything, has to be brought back,” he added, “The U.S. should do things for people elsewhere. They need the U.S. to do it. But as long as it costs money from me, you know, I’d rather have them do things here.”

Jerry, who refused to give his last name, was standing in front of a diamond store, with a make-shift cardboard sign hung around his neck with twine, advertising today’s sale.

“The economy’s awful,” he said, “that’s why I’m out here, doing this.”