ELKHART, Ind.  To understand just how grim things have gotten in this northern Indiana town, consider a new law passed last month by the City Council that limits residents to one garage sale a month.

It seems the perpetual garage sales  which for scores of people in this town are a sole source of income, and for others the only source of clothing  were annoying some residents. The restrictions will make the financial pinch that much tighter.

“I have no other option,” said Todd Baker, 34, who lost his factory job in July right before his wife gave birth to their third child. Friday was his last permissible day to sell old children’s clothing, muffin tins, a fake white Christmas tree, stereo speakers and dozens of household doodads out of his garage.

“I’ve never missed a day of work in my life,” Mr. Baker said. “Man, I’m shocked that I have to shut this down. My neighbors are usually out here, too. We’ve got regulars who are in the same situation, or lost their house, and when the bank took it, they took everything that was in it. I’m just trying to do as much as I can because the heat bills are going to go up 25 percent this winter, too.”