Category Archives: Economy

Road Less Traveled: How Craig, CO Was Orphaned

10 Tuesday May 2022

Posted by in Colorado, Economy, History, Mining, Small town, Travel, US History

≈ Leave a comment

Tags

, , , , , , , , , , , ,

Craig, Colorado is a small town in Moffat County in the sagebrush of the high desert of northwestern Colorado. It is on U.S. 40, almost exactly halfway between Denver and Salt Lake. Up until the 1970s, its location made it a favored stopping point for travelers crossing the sometimes challenging roads over the Rocky Mountain passes.

However, like many developing towns across the country, Craig would become an orphan when one of the largest infrastructure Acts of the 20th century was passed in 1956.

Craig, Colorado

The First 60 Years

Moffat County opened up to homesteading in the early 1900s and became firmly established when the railroad reached the area in 1913. In less than a decade, Craig grew to over 5,000 people.

The first boom cycle for Moffat County was short-lived as average precipitation was too unpredictable to create a consistent living off farming. Most of the homesteaders eventually gave up and either moved into Craig or left the area completely.

However, Craig continued to survive and have moderate growth thanks to a few key industries. Cattle ranching and coal became the main revenue for the remote corner of Colorado. As roads improved, Craig was ideally located between Denver and Salt Lake City. That helped keep traffic flowing through the area and brought in tourist dollars from outside the county.

The Rollercoaster Population

Moffat County was carved out of Routt County in 1911. In 1910, only about 25% of Routt County’s population lived in the newly created county. There were about 2,000 people living in Moffat County when it was established.

By 1920, the population of Moffat County had more than doubled to 5,129. The population then dropped to 4,861 by the 1930 census but recovered in 1940 to a census of 5,086. It would continue to grow for the next twenty years to 7,061, only to decline in the 1970 census to 6,525.

A population boom in Moffat County’s first decade would seem to be linked to that inflow of homesteaders and the decline following that would be linked to homesteaders leaving the area. The steady growth from 1930 to 1960 would seem to be associated with the link that Craig had to Denver and Salt Lake as the halfway point between the two major cities on a major highway. That highway was U.S. 40 and was known as the Victory Highway and also the Main Street of America linking Delaware to the east to Salt Lake to the west.

The intersection of Colorado Street and Victory Way (U.S 40) in Craig, Colorado

The decline in the 1970 census seems to coincide with the impact of the Federal Aid Highway Act of 1956. This was the legislation that created the interstate highway system. Essentially, it shifted most of the cross-country traffic from roads like U.S. 40 to interstate highways like I-80 through Wyoming.

The Rocky Mountain Reputation

There were multiple competing goals in the design of the new interstate highway system. Among them were:

  • Maximizing interstate highway usage by avoiding duplication of service
  • Minimizing costs by avoiding difficult geographical construction challenges
  • Expedited construction timeline
  • Service public and military needs
  • Link key population centers

To understand what happened in Colorado regarding the creation of the system, it is important to note that the decision-makers apparently had a healthy fear of the Rocky Mountains. The initial routes for the interstate highways avoided crossing the formidable mountain range by sending traffic north across southern Wyoming (I-80) or south through the more moderate climates of New Mexico and Arizona (I-40).

The original interstate highway map of 1955

The plan was to have one interstate highway (I-70) in Colorado, but it would stop in Denver and not cross the mountain passes. That would serve the population center of the Front Range of the Rocky Mountains and minimize the cost. It also would avoid slowing the completion of the interstate system by not taking on the task of building roads through the mountain passes.

Colorado Governor Johnson and I-70

One of Moffat County’s most famous citizens was Edwin Carl Johnson. Johnson and his spouse came to northwest Colorado on the advice of his physician who felt the climate would be more favorable after his recovery from tuberculosis.

He became involved in Colorado politics and twice, in 1933 and 1955, he served as Governor of the State. Eighteen months after Edwin Johnson took office for the second time, the massive highway Act was passed and he became a major advocate for Colorado’s interests in the interstate highway plan. He insisted that it would be unfair if the country’s major arteries were to be routed around Colorado.

Edwin Carl Johnson, former Moffat County resident and Colorado’s 26th and 34th Governor

The Interstate Sausage

Political compromise has been compared to making sausage. It is something that may be necessary but nobody should witness how it’s done. The alignment of the interstate highways is no exception. The interests and well-being of many small communities were sacrificed in an effort to accomplish the task. Craig was one of the casualties.

Although Governor Johnson had been a resident of Moffat County, his task was to convince the multiple stakeholders that Colorado must have an interstate highway that crossed it from east to west in order to not be isolated from the commerce that would be crossing the country. Had he been the decision-maker, I-70 would have likely followed the most direct route and Craig would have benefited.

Fortunately, Governor Johnson did have allies in Utah and they became key players in this effort. They wanted the I-70 extension to connect to Salt Lake City. This presented the opportunity for the new interstate to follow the U.S. 40 alignment through Craig or via the U.S. 6 route. Upon agreeing to this, Colorado and Utah presented a united proposal for bringing I-70 through Colorado and Utah.

Route options for the I-70 alignment from Denver to Salt Lake City

Sneaky Public Roads Commissioner

The Bureau of Public Roads (now the Federal Highway Administration) accepted the extension plan but the Department of the Army felt that it should be routed through southern Utah to connect to southern California. The route was changed and announced without any discussion with Governor Johnson or the Utah officials. The Commissioner of the Bureau admitted later that they intentionally did not inform anyone of the re-routing of I-70 in order to avoid any complaints.

This re-routing ended any opportunity for Craig to be a part of the economic benefit of the interstate highway system. While Craig remains on a more direct route between Denver and Salt Lake, it is slower than the longer routes that include travel on an interstate highway. It has had an economic impact and the lost revenue of the cross-country traveling public likely contributed to the decline in the population of Moffat County in the early 1970s.

Epilogue

It could be argued that Craig might have not gained much economically if I-70 had been routed near the town. Steamboat Springs is 42 miles east of Craig and would have been an option for interstate travelers to rest, eat, and/or refuel. It is likely that both towns would have benefited, but Craig needed the connection more than Steamboat Springs. Craig didn’t have the mountain town attractions that Steamboat Springs developed in the 20th century.

Because of Craig’s coal reserves, a boom cycle began in the 1970s when three coal-fired electrical power plants were built; however, after expending much of the readily available coal and because of the health and environmental threats, the units have been scheduled to be closed down over the next decade.

Today, Craig faces a bleak future with no reliable financial source for new employment and new tax revenue. Its situation is compounded by its remote location, hundreds of miles from the economic centers of major cities. Had I-70 been built along the U.S. 40 alignment, Craig’s future might be more hopeful than it is today.

Colorado’s 17 Dying Counties

23 Tuesday Jun 2020

Posted by in Colorado, Conservatives, Donald Trump, Economy, Education, Government, jobs, Mining, Politicians, Politics, Small town, Taxes, United States, Voting

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , , , , , , , ,

From 2010 to 2019, Colorado has enjoyed a 14.5% growth in population. Urban areas, such as Denver, have had more significant growth than rural areas. The growth has led to more jobs, more paid taxes, and a general boost to the economy of the State.

However, Colorado consists of 64 counties and many of the rural counties struggle to maintain a viable economy. A declining economy means fewer jobs, fewer jobs means less income for residents, and less income means a decline in the tax base for essential county services. It is the death spiral that a rural county suffers, leading to a collapse of its economy. When the 2020 Census is complete, there are seventeen rural Colorado counties that will likely show a decline in population. 

Colorado counties with population declines (2010 to 2019 est.) Percentages indicate the amount of decline, other numbers indicate the population of counties under 10,000. [Number colors indicate the last 40 years of political party support. Red-Republican, Blue-Democrat, Purple-Split]

Typical Economic History

Colorado, like many other U.S. States, established an economy on agriculture and mining. Also like many other States, as businesses became more centralized and industrialized, rural areas became outpaced by the income potential of urban areas. This conversion of the foundation of our economy left rural areas isolated from the economic benefits of newer industries.

Rural Colorado is isolated from the economic power that exists in Denver and other urban areas.

Arteries of the Economy

Geographic location has played a major role in the economic fortunes for Colorado counties. Most pioneers heading west avoided the difficult mountain passes of Colorado and traveled through Wyoming. It wasn’t until the trains came to Colorado that significant growth began. In the 20th century, paved roads allowed smaller towns to emerge along highways that could provide services to the traveler.

The completion of Interstate 80 (I-80) through Wyoming, and Interstate 70 (I-70) through Colorado, siphoned off the traffic that fed the economy of many smaller communities. Even communities located on I-70 found that faster roads and improved gas mileage hurt their economy. The result was a loss of jobs and revenue in small towns outside of urban corridors. By the end of the 20th century, many of Colorado’s remote communities began seeing stagnation and decline in their population. 

Off The Path

The counties experiencing population decline since 2010, indicate that isolation from Colorado’s central urban core is continuing to impact communities in the State. Thirteen of the counties experiencing a population decline are located on the Colorado State border. The other four are adjacent to a county located on the border.

Colorado has 26 counties that have a population under 10,000 (2019 est.) Most of these counties are also located at or near the State border. Eleven of the seventeen counties experiencing a decline in population also have less than 10,000 residents. This means that many of the counties losing residents are exacerbating the crisis for the county.

But not every county on the fringes of Colorado’s borders is losing population. Are there common traits of dying counties? The answer is yes, and the attitudes of the residents may be a factor.

Five Common Characteristics of a Dying Colorado County

1.  Small Population

The total population of all 17 dying counties is just over 130,000 people. That means that the average population for the counties is well below 10,000 people.

2.  Large ‘White Only’ Population

The average ‘White Only’ demographic for Colorado is 68%. The 17 dying counties have an average ‘White Only’ demographic of 73%.

3.  Fewer College Degrees…by almost half

Over 40% of Colorado residents have college degrees. In the 17 dying counties, only 21% have college degrees.

4.  Average per Capita Income is Less…about one-third less

The average per capita income for a Colorado resident is $36,415. The average for the 17 dying counties is $24,735.

5.  Strong Republican Support

Rural counties tend to be more conservative, but these 17 dying counties are diehard Republican fanatics. All of the 17 dying counties voted for Donald Trump in 2016 by an average of 71% of the vote. In addition, almost all of the counties have voted for a Republican candidate for President in each election for the past 40 years.

Table 1.0 – Colorado Counties Decreasing in Population. [Source: U.S. Census Bureau and Wikipedia]

Not All Small Counties Vote Red

It is easy to assume that all rural counties with a small population are conservative and vote Republican. That is not true in Colorado. Most of the 26 smaller counties do vote Republican, but there are eight small counties that have voted for the Democratic Presidential candidate a majority of the time during the last 40 years.

Those eight Blue counties with populations under 10,000 have a ‘White Only’ demographic slightly less than Colorado’s average, an average population growth rate of 8.5%, have a college degree rate of about 50% greater than the dying counties, and have an average per capita income that is about halfway between the dying counties average and the State average.

Table 2.0 – Colorado Blue counties with a population of less than 10,000. [Source: U.S. Census Bureau and Wikipedia]

Does Political Ideology Determine the Fate of a County?

The correlation between a county’s fate and the political leanings of its citizens does seem to exist, but does ideology determine the fate of a county, or does the county’s situation determine the political ideology? There is no obvious answer to that question.

Still, the political ideology reflects the attitudes of its citizens in decision-making and the fact that all of the counties in Colorado that are losing population, voted for Trump in the last election, and that the long term history of those counties has been to vote Republican, it would seem that the traditional political leanings of a county have an impact on the success or failure of a Colorado county.

Dying Counties Don’t Die

The tragedy of dying counties is that they don’t die.

Colorado has three counties with a population under 900 people each. These three counties have their own county commissioners, their own county administrative offices, and their own county sheriff’s department. All three of these counties are adjacent to each other and yet they exist as separate entities.

It would be logical to fold a failed county into an adjacent county; however, that is not what happens to counties that no longer are viable. These counties become wards of the State, dependent on State tax revenues to exist.

In the end, dying counties become dependent on the rest of the citizens of Colorado.

Timid Democrats in Power Haunts the United States of America

02 Monday Mar 2020

Posted by in Assault Weapons, Business, Conservatives, Crime, Donald Trump, Economy, Ethics, Government, Government Regulation, Gun control, History, Honor, Nevada, Politicians, Politics, racism, Stock Market, Taxes, Technology, United States, US History

≈ Leave a comment

Tags

, , , , , , , , , , , , , ,

The decline of the United States of America under the conservative boot has occurred for almost 40 years. Unfortunately, during those few times when the Democratic party has managed to wrench back power for brief periods, timid Democrats have failed to move boldly. The result is that now Democrats are seen as weak and ineffective in power, giving conservatives the opportunity to quickly regain a majority.

Former Vice President Joe Biden: Running away from the left

Conservatives History of Economic Disaster

The United States was driven into the 1930’s Great Depression by a Republican party that had changed direction after the Civil War. Prior to the Civil War, Lincoln’s Republican party had championed the end to slavery. After the Civil War, the party, centered in the northeastern industrial States focused on using the government to promote business interests at any cost.

Prior to the Great Depression, business and the stock market ran amok with no government safeguards to protect individual citizens. In the months leading up to the October 1929 crash, the stock markets ramped up into a delirium of expansion when world markets were collapsing. 

Graphic 1.0 – The Dow Jones wild surge while the world economies were collapsing. [NOTE: Graph uses a logarithmic scale to magnify change.]

The Great Depression demonstrated that government regulation and protections were necessary for a healthy economy. The conservative’s economy based on greed resulted in temporary gains resulting in massive collapses of the world economy. By 1933, a decade of Republican control of the government ended with the loss of the Senate, the House of Representatives, and the office of the President.

The Golden Age of the United States

With the exception of four years, (1947 to 1949 and 1953 to 1955,) Democrats controlled Congress from 1933 to 1981. During this period the United States recovered from the Great Depression, developed into a major world power, became a major force in winning World War II, and created a technologically superior economy that landed humans on the Moon in only ten years.

Under Democratic control, individuals and corporations were protected by a government that balanced profit with societal obligations. It was our Golden Age.

End of Government For the People

In the late 1970s, inflation, the retreat from further space exploration, and rising terrorism in the Arab world combined to create an opportunity for conservatives to sow dissatisfaction in the country. The 444-day hostage crisis in Iran during the Presidential election weakened President Jimmy Carter and opened the door for Republicans to take control of our country. 

Ronald Reagan began a dynasty of conservative control of the government of the United States of America. He was bolstered by a friendly Republican-led Senate and a timid Democratic-led House that provided minimal resistance to conservative reforms.

Actor Ronald Reagan from The Bad Man

Prior to his election in 1981, this former ‘B’ movie actor-turned, rightwing conservative-turned, FBI informant-turned-politician, had declared to enact conservative initiatives aimed to dismantle the government and replace it with a Wild West-style society where ethics were secondary to profit. 

Reagan used a ploy of patriotism and tax breaks to mask the true nature of his plan to dismantle protections of individuals and move power from government to the corporations and the wealthy. His tax plan gave small tax breaks to the middle class, which were later rescinded and even increased; however, the wealthy enjoyed the top rate bracket being slashed from 70% down to 50%, followed by an additional cut down to 38.5%.

The result was to shift the tax burden on to the middle class and cut federal government revenues drastically. Changes in the tax structure and government protections was an abrupt 180° change in course for the nation. It ended a government for the people and replaced it with a government for corporations and the wealthy.

The Rise of Republican Bullies and Timid Democrats

House Democrats adopted a position of acquiescence to Reagan, possibly under the belief that the popularism that brought Reagan into power would falter after his policies led to economic failure. If so, it worked to some degree. Republicans lost control of the Senate in 1987, and in 1993, Bill Clinton became President.

For a brief moment, it seemed that the United States might return to the Golden Age. Clinton used Democratic control of the government to reverse several conservative policies put into place by Reagan and President George Bush (41st.) In his first term, Clinton pushed forward the Family and Medical Leave Act of 1993, cut taxes on the poorest citizens and raised taxes on the wealthiest, began work on a Universal Health Plan, passed gun reform legislation known as the Brady Bill, enacted the  North American Free Trade Agreement, and passed the Omnibus Crime Bill, that included a ten-year ban on assault weapons.

Bill Clinton Under Siege

At the same time, conservatives began a relentless campaign of attacks on the President and Hillary Clinton including smear campaigns regarding his time as Governor of Arkansas. These efforts were unprecedented in our country’s history. Arkansas State Troopers with ‘slimy motives’ claimed they had arranged private engagements with then-Governor Clinton and other women. The Clintons were accused of abuse of power in what became known as the Whitewater controversy.

In 1994, the Democrats lost control of both houses of Congress for the first time in forty years. Republicans, led by Newt Gingrich, ran on a united plan known as the Contract With America that put forward a mix of popular ideas (require Congress to abide by any new law, term limits, etc.) and proposals to dismantle government protections (deregulations, reducing government, etc.) In large part, the Contract With America was ineffective. Some issues were defeated, some were vetoed by President Clinton, and some were ignored. At least one item was enacted but was later ruled unconstitutional.

Picking up where Reagan left off

However, Republican control of Congress began a resurgence of conservative power that effectively beat Clinton into submission. Clinton did win a second term but even before the election he signaled his surrender to conservatism. During his 1996 State of the Union address, he announced that the “…era of Big Government is over.”

The era of the Timid Democrat had begun.

Florida Fiasco

In 2000, Republicans completed their coup of the government by retaining both houses of Congress and winning the Presidency. George W. Bush (43rd) was elected when the Supreme Court interceded in vote recounts that gave a micro margin lead to Bush over Vice President Al Gore. Bush was elected by the smallest number of popular votes in over 100 years and a subsequent State-wide recount indicated that Gore actually won.

Without a majority in Congress and a Republican President, Democrats essentially gave up. It would be six years until Democrats would win back Congress and that was only possible after Republicans had mismanaged the economy into a near second Great Depression. 

Change Undelivered

In 2007, the United States began a Recession that nearly destroyed the country. The cause of the financial crisis was unethical practices by the banking industry that placed greed over common sense. The lack of government regulation, forced by conservatives, resulted in massive packaged loans that were laced with bad debt. When the investors realized the depth of the deception, the value of the investments went into freefall.

The crisis led to the restoration of the Democrats to power. In 2008, Barack Obama, the first African American President, won over Senator John McCain. Focused on restoring the economy, Democrats, led by Obama, took bold actions that were chastised by rightwing conservatives and their media feeds, including Fox News. The action taken by the Democrats saved the country, but rightwing media worked diligently to underplay the role of liberals in restoring the economy.

Obama’s election was heralded as the great change to reverse the destruction of government. Democrats united to push for a massive new healthcare system during Obama’s first term. Unfortunately, saving the economy and implementing a new, heavily compromised healthcare plan would be the highlights of the first two years of Democratic control of the government. 

In 2010, Democrats lost the House and in 2014, they lost the Senate. Republicans adopted a strict ‘no-cooperation’ with President Obama and effectively stopped any effort to restore the country to a government for the people. The President did attempt to use his authority to effect change through executive action; however, the rightwing media severely criticized him for adopting any non-conservative approved policy.

By 2016, Democrats had completely settled into acquiescence and even Hillary Clinton adopted a conciliatory platform when she led the Democratic ticket for President. Clinton was blindsided by Donald Trump, who used his conman skills to consolidate the vote of the uneducated, religious Evangelicals, and racists. The results of the election left Democrats devastated. The party leadership had no response to a person who had no ethics, played by no rules, and was supported by people who were blind to his behavior and actions.

Lessons Unlearned

The current situation in the Democratic party reflects a continuation of the mistakes of the past 40 years. Former Vice President Joe Biden is a symbol of the Timid Democrats. His positions are to continue subservience to conservatives under the mask of a Democrat. His campaign is based solely on defeating Trump by moving farther right to collect more conservative moderates.

The party has a long list of candidates who are trying to carve out the moderate vote while ignoring the need to reverse the course. Only Senator Bernie Sanders and Senator Elizabeth Warren seem to understand that the actions of conservatives are the problem.

Unfortunately, with Mayor Pete Buttigieg and Amy Klochubar dropping out, the moderate vote will now be more consolidated for Biden. In addition, Billionaire Mike Bloomberg is apparently setting himself up for an independent run for President. The long-standing moderate Republican suddenly declared himself as a Democrat in 2018, followed by a delayed entrance into the race for President. His late run virtually guarantees that he cannot win the nomination; however, he likely will lure Democrats to vote for him as an independent.

It may end up that people will have a choice of Biden or Bloomberg to oppose Trump. Both of them will be champions of continuing conservative ideals, and that will mean the era of the Timid Democrat is to live on.

Moffat County Coal: Why Ignorance is Not Bliss

30 Thursday Jan 2020

Posted by in Business, Conservatives, Donald Trump, Economy, Education, Employee Retention, Ethics, Government, Government Regulation, Green, History, Honor, jobs, labor, Layoff, Mining, Politicians, Politics, Public Image, Public Relations, racism, Reduction in Force, Small town, Technology, US History, Voting

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , ,

The Pity Party Regarding Moffat County Coal

A video about coal mining in northwestern Colorado suggests the people of Craig, in Moffat County, are having a pity party and they want everyone to join in on their self-inflicted suffering. Craig’s primary economic industries are coal mining, coal-fueled power generation, and tourism from primarily hunting and other seasonal outdoor sports. It is an economy that locals admit lacks diversity and resiliency.

Craig, Colorado:  Moffat County’s Only Significant Population Center

This month, Tri-State Generation and Transmission Association announced that it would close all three coal-fired power units by 2030 and close down the Colowyo coal mine that supplies the three power plants south of Craig. Not surprisingly, local people are upset and many are turning their anger towards government regulations that they claim are killing their community.

This carefully crafted pity video published in 2015, by the American Energy Alliance, an energy industry-funded non-profit operated and directed by former House Republican staffers, is being used by at least one area resident¹ to use the news of the closings to renew anger at the government:

[SEE: The Perfect Storm Over Craig, Colorado]

The Ugly Reality of Coal Mining

Modern history lacks any examples of coal-mining dependent communities that have eventually gone on to become a great economic success. It just doesn’t happen. Mining companies have a reputation of ripping the coal out of the ground, shipping it away, selling it, reaping vast fortunes, and walking away from their mess. The coal industry has a legacy of broken workers, broken agreements, and always placing owner profits over every other consideration. In their wake is typically a shell of a community that is left in a cycle of poverty.

But history and context are typically not what local people care about or understand. They only see that a company is willing to come to their isolated community and offer them a Devil’s Bargain for jobs. Local communities are usually burned by the deal but rather than accept the consequences, many adopt the tactics of the tobacco farmers when the public became aware of the dangers of smoking. They scream, “It’s all the government’s fault.”

The Facts

Change Has Been Coming:  In the last decade, many aging coal-fired plants have been converted over to natural gas. The fuel is less expensive and cleaner than coal. Tri-State has stated that the decision to shut their Moffat County operations was a business decision based on operational costs.

The Road to Nowhere

The Craig Power Plants Units Already Slated For Closure:  Two of the three units were already slated to be retired. Unit One was to be closed in 2025 and Unit Two was to be retired in 2039. Unit Three was only four years younger than Unit One but no retirement date had been established. All three Units were facing decommissioning and the associated coal mine would become less relevant with each Unit closure.

Coal is More Expensive and Harmful:  The combined costs of building and operating coal-fired power plants, added to the cost of mining coal, the cost of restoring the damage (environmental, health, etc.) caused by mining coal, and the cost of the impact of the air, soil, and groundwater pollution of coal burning, makes the expense of coal-generated energy too high. With no mining, minimal pollution, and free fuel, solar and wind energy are less expensive and the green options don’t threaten the disastrous consequences of global warming caused by carbon-based fuels.

Alternative Energy is Becoming the Standard

Coal Generation Has Been On a 20 Year Decline:  In 1997, coal provided 52.8% of the energy generated at commercial sized units. By 2018, that had dropped down to 27.8%. No new coal-fired generating plants are being planned or built in the United States to replace old units scheduled to be closed. Coal is a dying industry and no one can say it’s a sudden death. [Source]

It’s the Mining Company, Stupid:  Mining has consistently replaced human workers with machines that are more productive, less expensive, and don’t complain or demand anything. The reduced size of the mining workforce in the United States has nothing to do with government regulation and everything to do with companies saving money by taking away mining jobs from their own workers.

The Person Standing On the Train Track

A person standing on an active train track has three choices. That person can, 1) step off the track before the train comes, 2) get up on the platform and hope the train stops to let him or her get on, or 3) continue to stand on the track and rant about the train until she or he is run over by it.

The video suggests that the people of Craig have chosen to take the third choice. There is no sudden change in the coal industry that is causing it to be phased out. Anyone who cared about their community would have known that coal was a bad bet in the economic sustainability game.

Moffat County, the Perfect Victims

Why is Craig the perfect platform to be showcased for a political agenda?

White Begats Red

Moffat County is Trump Country. It is 80% caucasian and overwhelmingly Republican. In the last 55 years, no Democratic Presidential candidate has obtained more than 40% of the vote in the county. Craig is happy to be the political tool of the white wing.

History of Being a Victim

Craig is located halfway between Denver and Salt Lake City. It used to be on the main route between the two major cities (US 40.) When Interstate 70 (I-70) was in the planning stages it was to terminate in Denver, but Governor Edwin Johnson, (a Moffat County native,) convinced the federal government to continue it through Colorado. The irony is that he ignored the existing US 40 route through his home town and proposed the interstate follow the US 6 route.

Signal Hill: The Faded Glory of Craig

That decision isolated Craig. Instead of being the perfect stopping point between Salt Lake and Denver, it became the town ninety miles south of Interstate 80 (I-80) and ninety miles north of I-70. The impact of that choice still affects Craig’s economy today.

Population Stagnation

While the population of every economically diverse community has been increasing over the last 30 years, Moffat County’s population hit a high of 14,541 in 1983 and today it has over 1,000 fewer people than 37 years ago. Every Spring, the high school graduates more students than the community has jobs. For decades, the need to diversify and expand Moffat County’s economy has been a topic of discussion…with no viable plan.

Imprisoned By Their Own Political Ideologies

One obvious opportunity is alternative energy. The transmission lines that connect Craig to the power infrastructure already exist with the terminus at the current power plants. A wind or solar farm in Moffat County wouldn’t have significant expenses in building transmission lines.

End of the Road in Craig

The problem is that alternate energy choices are exactly what many people from Craig have sworn to oppose. In their minds, solar and wind farms are a waste of time and resources. For a majority population of Trump supporters, accepting clean energy as a source of new jobs and revenue for the community is unthinkable. Better to fail and cry than admit their lack of foresight.

A Failure To Educate

Moffat County High School is one of the worst performing in the state. Those that graduate face the choice of few job opportunities in the community or leave and face difficult challenges in being competitive with better educated graduates. From the CollegeSimply website:

Moffat County High School has an academic rating well below the average for Colorado high schools based on its low test performance, average graduation rate and low AP course participation.

Moffat County High School students score less than a 9% proficiency in Math (State average is 33%,) and less than a 14% proficiency in Reading (State average is 42%.) Less than 9% of the students have passed one or more AP exams. [Source]

Whether Craig’s stagnated economy has led to poor education or poor education has led to a stagnated economy the result is the same, the future of the community is not in the hands of young people who can be expected to repair and build upon their parent’s lot in life.  

A Video For No Reason

All this may explain the attitudes and desperation of the people of Moffat County expressed in the video. They feel like victims and so rather than embrace new technologies and diversify the economy, they would rather hang on to the past.

This video is the perfect storm of ignorance, political game-playing, an attitude of defeat, and poor education. It exposes the city and county’s history of failing to be proactive. Instead of seeking a more diverse economy, a choice was made to seek pity. The community may never realize that a Devil’s Bargain has a price…and now they will pay.

[¹NOTE:  This video was posted on 29 January 2020 on the Facebook page of a former high school graduate of Moffat County High School who still lives in the region. The author of this article believed the video was published after the news of the closings; however, after this article was published the author became aware that the video was first published in 2015. Corrections to the text have been made accordingly. Also, the video embed link has since stopped working and has been replaced by a URL link. ]

Under Deconstruction: University of Nevada South Neighborhoods

09 Thursday Jan 2020

Posted by in About Reno, Business, College, Economy, Education, Generational, Government, Higher Education, History, Housing, Life, Nevada, Politics, Pride, Reno, Universities, University of Nevada

≈ Leave a comment

Tags

, , , , , , , , , , ,

A Different Type of 20/20 Plan 

The neighborhoods of the University of Nevada in Reno start 2020 with 20 structures recently demolished or moved and 20 more standing vacant, waiting for their demise. Not all of it is directly connected to expansion by the University, but houses in some of Reno’s oldest subdivisions are vanishing for university-related business.

The end is near for neighborhoods on the U of Nevada southside

For the last few years, structures adjacent to the university, primarily houses, have been torn down. The neighborhood on the west side of Virginia Street has seen significant changes and now the southern neighborhood has become a part of the makeover.

Southern Loss:  Under the shovel of progress

Southeast – University of Nevada Engineering Building

In 2018, the University began tearing down nine houses on the west side of Evans Street. These homes adjacent to the southeast edge of the campus were part of the University Heights subdivision but most of them have been owned by the University for many years. A large new building for the College of Engineering is replacing the nine homes. A tenth home remains standing at the curve of Evans on the southeastern corner of the campus.

University Heights subdivision homes replaced by Pennington Engineering Building (Home marked with the yellow line remains standing but is owned by the university.)

The College of Engineering has grown significantly in the past decade (1,595 students) but that growth has slowed to an increase of only 170 students in the past four years (Fall 2015 to Fall 2019.) University administrators have stated that the new Pennington Engineering building is too accommodate the growth.

The New Pennington Engineering Building in University Heights 

Evans Northeast Addition – Abandoned and Boarded

CCC-Reno LLC purchase of Evans Northeast Addition subdivision

In 1906, Elizabeth Evans, widow of John ‘Newt’ Evans, filed for the Evans Northeast Addition subdivision. Most of the homes were not built until the 1930s; however, many were torn down in the early 1970s because of the construction of Interstate 80 (I-80.) Only one small block remains of the subdivision north of I-80 and west of the railroad tracks. That block is bounded by Record Street to the east, Evans Street to the north and west, and 9th Street to the south.

Homes of the Evans Northeast Addition neighborhood

On 5 March 2018, Capstone Collegiate Communities (CCC-Reno LLC,) a company located in Birmingham, Alabama, purchased all of the remaining properties. According to Washoe County Assessor data, the purchase for the homes (excluding the commercial property) was 180% of the current (Jan 2020) Zillow.com estimated value. The Alabama buyer paid over $5.5 million for all nine properties.

Acquisitions by Capstone Collegiate Communities, an Alabama corporation

After purchasing the properties, Capstone attempted to have several public roads abandoned by the city to expand the property. One of the proposed options was to close Evans Avenue. This would have effectively eliminated access to the eastern side of the University for those coming from I-80 and would have eliminated the most direct access to I-80 from the neighborhoods east of the university.

Fortunately, that plan never came to a vote by the Reno City Council; however, Capstone did secure more land by convincing the City Council to abandon a small right turn lane and its adjacent island.

Although Capstone Collegiate Communities have owned the properties for almost two years, it has been reported that they do not intend to begin construction until the Summer of 2021. It is unclear when the existing structures will be demolished. 

Evans North Addition – One of Reno’s Oldest Neighborhoods

For many years, the University has expressed frustration with the look of the motels and properties of the block between the campus and I-80. They expressed a desire to expand into that block and create a gateway to the University.

The house at 843 Lake Street was built in 1932. One of 23 properties now owned by U of NV

The irony is that this neighborhood was one of the first planned neighborhoods in Reno, and at one time it was known as one of the nicest neighborhoods. Known as ‘Professor’s Row,’ many homes were demolished in the 1970s to make way for I-80. This attracted the small hotels to fill in the block along Virginia Street that became unsightly as they aged.

One of the post-Interstate hotels on Virginia Street that is now slated to be destroyed.

It is also a twist of fate that the University is now seeking to eliminate the subdivision known as the Evans North Addition. This subdivision was established in 1879, by John ‘Newt’ Evans and his brother. John Evans was also the person who helped to convince the legislature to move the University of Nevada from Elko to Reno in 1885, and who also sold the land to the University.

U of NV Parking Garage and Business Building

Through purchases and donations, the University has acquired 23 properties to build a new parking garage and Business building. Construction is planned to begin later this year.

University of Nevada acquisitions for the parking structure and Business building

College of Business has also experienced significant student enrollment since 2009 (+1501 students;) however, the growth has slowed in the past four years with only 216 more students than in the Fall of 2015. The current building was built in 1982 and will be 40 years old in 2022.

RTC Steps in for the University

Virginia Street has been the focus of discussion as the motels in that area have been the source of crime and visual unattractiveness for the city and the University. Last Fall the Regional Transportation Commission (RTC) announced that they had purchased three of the five properties along Virginia Street between the University and I-80. The intent of the purchases is to create a transit hub, primarily for the benefit of the University.

RTC has the power to use eminent domain; therefore, the other two properties will either have to negotiate a fair price or face a legal battle that they will likely lose. The motels on the east side of Virginia have been abandoned and a construction fence placed around them.

Unrelated to the RTC project, two additional structures have been demolished at 9th and Sierra Streets, including a vacant sorority house; however, there has been little, if any, public announcement of the future of these properties. 

The Death Blow

The loss of these neighborhoods was really initiated by the construction of Interstate 80 in the 1970s. Quiet historical homes nestled at the foot of the University were no match for a major interstate artery through the middle of their neighborhood. If the alignment of the Interstate had been along the same route as the existing Highway 40 it might have given the Evans’ subdivisions an opportunity to survive. We will never know.

But now the last evidence of some of Reno’s original neighborhoods will be swept away. Unfortunately, hindsight is always 20/20.

Nevada Education: The War On Children

22 Monday Apr 2019

Posted by in About Reno, All Rights Reserved, Business, Conservatives, Economy, Education, Ethics, Government, jobs, labor, Management Practices, Nevada, Politicians, Politics, Reno, Taxes, United States

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , , , , , ,

Nevada Schools Closed on April 9th

April 9th was the last day of school in Nevada. Teachers, students, and staff will continue to keep the schools active until June 7th, but they are essentially working for free. This is based on a simple assumption. The assumption is that Nevada children should have the same level of funding as the average student in the United States. It doesn’t because education in Nevada is under siege and being starved of the funds it needs.

Schools in the United States spent an average of $11,762 on each student in the 2015-16 school year (the latest data available.) Nevada only spent $8,615 per pupil. [Sources:  Governing.com/U.S. Census Bureau Update 1 June 2018] Nevada funds their student’s education at 76% less than the average U.S. student. That is down from 83% in 2007.

Downward Spiral: Nevada per pupil funding as a % of the U.S. Average

At 76% of U.S. average per pupil funding, and based on a 180-day school year, Nevada’s per pupil funding runs out on April 9th, while the average U.S. student is funded to the end of the school year.

Nevada Education:  The No Money Myth

According to Education Week’s Quality Counts 2018, only Idaho ranks lower in School Finance and Nevada’ Overall education score is the worst in the United States. [Source:  Education Week 17 Jan 2018, updated 10 Oct 2018] But why doesn’t Nevada adequately fund public schools?

Nevada’s school funding, or lack thereof, is based on the assumption that Nevada is a poor State. Many believe that Nevada’s industries are overtaxed and cannot pay more in taxes than they are currently. They are not overtaxed. In fact, they’re hardly taxed at all.

Nevada is Not California, But It’s Not Nothin’

Nevada sits next to the 5th largest economy in the world, California. California casts a long shadow over almost all the other states in the United States, and it is true, Nevada’s Gross Domestic Product (GDP) is less than six percent of the Golden State.

Nevada’s GDP increased by 3.8% in 2017. In 2018, Nevada’s GDP increased by 5.7% in Q1, 4.3% in Q2, and 4.1% in Q3. (Source: U.S. Bureau of Economic Analysis Table 1)

However, Nevada’s GDP is not minor. In the United States, Nevada’s GDP is ranked 33rd (2017.) If Nevada were a country its GDP would rank 55th in the world. [Sources:  Wikipedia GDP World GDP USA] Nevada’s growth in GDP in 2017 was the second largest in the country.

What We Got Here…Is a Failure to Tax

Nevada’s problem is an almost religious belief that corporations should not pay taxes. Almost every tax in Nevada impacts the consumer, not the business. The gaming industry contributes almost nothing in taxes. They collect taxes from the winnings of the customer and collect lodging and entertainment taxes from the guest, but they pay no State corporate tax on their profits. They are essentially a tax collector for the State of Nevada, but not a taxpayer.

Nevada Mining’s Dirty Truths

Mining is one of Nevada’s major industries with a real GDP of $4.3 billion. [Source:  US ReapProject.org] Richard Perry of the Nevada Division of Minerals stated that in 2017, gold mining alone produced over $7 billion. [Source:  Nevada Business 1 Aug 2018] Since 2014, gold production has been increasing every year. [Source:  Nevada Mining Association] In 2017, Nevada accounted for 72% of all U.S. gold production. [Source:  Nevada Mining Association] Mining also offers one of the highest average wage of any industry in Nevada at just over $90,000.

It’s the other truths that make the ethics of the Nevada mining industry disturbing. Despite being a major industry, taxes paid by mining activities will only account for 1.1% of the State’s tax revenue during the 2017-19 budget. Cigarette taxes will account for almost four times the tax paid by mining. [Source:  Nevada Revenue Reference Manual 2017] 

Nevada’s Current State Revenue: Smoking is almost four times better for Nevada’s budget than mining

In 2018, Nevada ranked second in the world. For what? The mining industry ranked Nevada as having an almost a perfect score for having the most favorable policies in the world. Nevada is also ranked number one in Investment Attractiveness. [Source:  Fraser Institute 2018 Annual Mining Survey] Mining loves Nevada, in large part, because of a lax environment of taxation, labor, and regulation. Simply put, Nevada lets mining walk away with its natural resources with little benefit to its citizens.

One thing the Nevada mining industry does best is to control the message. They boast of having the highest average salary in the State. What they don’t emphasize is that mining only employees about 14,000 employees. [Source:  Wikipedia]

Mining’s high salaries are a result of, 1) employing few unskilled workers, and 2) competitive issues. They are trying to recruit highly skilled professionals to live and work in a rural, isolated environment. The high salaries are due to a workforce that is heavily mechanized and uses few unskilled labors. One report explains the employment situation in the Nevada mining industry:

Support positions represent the minority and are low-paying jobs, but this sector pays and average of about $90,000, if you’re lucky to get one of the mining or administrative positions.

Newsmax 14 Apr 2015 M.A. Smith 

 At War:  Disinformation About Public Schools

The motivation behind the war on Nevada children is greed. Also, a certain element in Nevada opposes the public education concept. This element, largely led by Nevada’s major industries, seem to believe that education is a black hole that consumes money but has no financial benefit to them.

The strategy has been to demonize public schools. For decades, a disinformation program has promoted the idea that public schools are corrupt, wasteful, and evil. Nevada’s business community, especially mining and gaming, have used their money and resources to back candidates that work to prevent adequate funding of public education. 

In addition, certain politicians have resurrected the belief that education should be centered on the concept of a deity. In 2015, Nevada Republicans passed a measure that would give parents taxpayer money to send their children to religious-operated schools. Republican Governor Brian Sandoval, whose children had attended a Catholic elementary school, signed the bill into Nevada law.

In 2016, the Nevada Supreme Court ruled the law to be unconstitutional but left the option open for Republicans to write a new bill that would allow taxpayer money to be given to parents for private religious schools. [Source:  AP 29 Sep 2016 – M. Rindels]

The Teacher Salary Deception

Those who are waging war against Nevada’s schools will point to the average teacher salary in Nevada. At $57,366, Nevada’s average teacher salary ranks as the 18th highest in the nation. [Source:  Business Insider 11 Feb 2019 – M. Perino] It is one of the few bright spots in the education story of the State…until you look closer.

With Nevada’s relatively high average teacher salary, one would expect the amount of money spent on instruction in Silver State’s schools to also be high, or at least above average. It is not.

Nevada’s per pupil spending on instruction is even worse than its overall per pupil spending. Nevada is only spending 73% per pupil than the U.S. average. So if the average Nevada teacher is paid more, why is instructional per pupil spending less?

The answer lies in Nevada’s teacher to student ratio. A single Nevada teacher instructs the same number of students as 1.6 teachers in the nation’s typical classroom. At almost 26 students per teacher, Nevada ranked first in the United States in student/teacher ratio for both 2016 and 2017. [Source:  NEA Research Table B3 Apr 2018]

Nevada pays teachers more than average because they have fewer teachers to pay. 

At War:  Infiltrate and Subvert

Stacking the Deck

Another tactic by anti-public school forces has been to infiltrate both local and state public school institutions and subvert efforts to increase public school funding to appropriate levels. The President of the Nevada State Board of Education is Elaine Wynn, co-founder and Director of Wynn Resorts, one of Nevada’s largest gaming corporations.

Seven of the eleven State Board of Education members do not have a degree in education, nor have they been employed as a public school teacher. The only active teacher on the Board is a part-time music teacher. [Source:  DOE.NV.GOV] The State Board of Education is designed to allow people with a vested interest in keeping a tight reign on funding for education.

At the school district level, the demoralizing environment of underfunded schools has caused the loss of great educators leaving the profession. This has also allowed in people who have a sadistic pleasure in experimenting on children. In the Washoe County School District (WCSD,) Nevada’s second largest, the vacuum of qualified teachers has attracted a few administrators and teachers that have seized the opportunity to push for cruelty in the schools.

Ms. Ratched is in the Classroom

The primary agenda of these dysfunctional administrators and teachers seems to the establishment a strict disciplinary state in the schools using the term, ‘rigor,’ as a code word for mental and social abuse of children. Rigor is interpreted by some teachers as an excuse to require hours of studying at home every night. When students fall behind, the teacher and the school blame the student for being mentally and/or emotionally flawed. Like Nurse Ratched in One Flew Over the Cuckoo’s Nest, a passive-aggressive teacher thrives in an environment where they’ve been approved to be tough on the students. 

Nurse Ratched also applied rigor and strict discipline to the people in her charge

Student absences are seen as opportunities by some teachers to burden the student with hours of makeup work. This work is added to the hours of homework that these same teachers send home every day. This work is due within 48 hours of receiving it. [Source:  WCSD Website] Some teachers have interpreted this policy as beginning 48 hours of being posted online, meaning students are expected to retrieve their makeup work at home while they are sick.

Some teachers have opted to use homework as an alternative to classroom instruction. In one case, a math syllabus for 7th-grade students warns students that homework will include introducing concepts not discussed in the classroom. The student is expected to research the concept at home and teach themselves how to complete the math problem. A math teacher reportedly told her students, “I’m not here to teach you, I’m here to grade you.”

I’m not here to teach you, I’m here to grade you.

Washoe County School District Teacher

During the past school year, the district also attempted to implement a program requiring students to complete improvised curriculum from home during ‘Snow Days.’ This program, known as ‘Digital Snow Days,’ had no educational justification. [See previous article] It was implemented under the banner of rigor and even though it was considered unlawful by the State Board of Education, certain district administrators vowed to pursue the program.

A typical child will often say they hate school, That’s expected, however, the fallout from an excessively cruel school environment is that students learn to hate learning.

Nevada Education:  Everyone Loses

In Nevada’s War on Children, everyone loses. Children that hate learning may do well on tests and graduate, but their motive is to do what is necessary to get away from school, not move forward with their education.

Employers that need bright, eager, well-educated employees to be competitive find Nevada high school graduates lacking. Companies like the aerospace company, Sierra Nevada Corporation, has its headquarters in Nevada where it escapes corporate and personal income taxes, but most of the company’s workforce is in Colorado. The jobs go to where the qualified people live.

Schools lose because they can’t keep great teachers who are faced with impossible work conditions. When schools recruit new teachers they are beggars offering salaries that don’t reflect the degree of education, training, licensure, personal scrutiny and professionalism required. Often they get the person willing to work for the salary, not the person they want in their school.

Parents lose because they have to confront the reality of underfunded schools, but their words fall on deaf ears when they seek remedies to the situation.

Nevada Education:  In a Tunnel Going Nowhere

There is no light on the horizon for Nevada’s schools. The current legislative session that will set the budget for the next two years will once again close without any effort to correct Nevada’s underfunding. Each year, Nevada’s per pupil funding will fall farther behind the funding for the average student in the United States. Money that belongs to Nevada’s children will end up in the bonus for a corporate executive…and the politicians will just shrug their shoulders and go home.

[NOTE:  Additional historical data was obtained from the Public Education Finances Report from the U.S. Department of Commerce, U.S. Census Bureau for 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015]

Nevada Democratic Primary State and Federal Choices

26 Saturday May 2018

Posted by in About Reno, All Rights Reserved, Branding, Business, Communication, Conservatives, Economy, Education, Ethics, Generational, Government, Gun control, Higher Education, Honor, jobs, Life, Nevada, Opinion, Passionate People, Politicians, Politics, Reno, Republic, Second Amendment, Taxes, Universities, Voting, Women

≈ Leave a comment

Tags

, , , , , , ,

Early voting in Nevada’s 2018 Primary begins today. Because Republicans have damaged themselves severely in attempting to create a Soviet-type government, some conservatives have shifted to the Democratic party in order to be elected. This makes the Nevada primary more critical than the General election, as the Democratic Primary nominee is likely to win.

Casinos and mining industries are heavy contributors in Nevada elections and an informed voter will note that any candidate that has a well-funded campaign is possibly being propped up by those special interests. In this Primary, there are several candidates that seem to have an unusual amount of money to spend.

Based on my research, here is who I’m voting for in the Nevada Democratic Primary for Federal and State offices, and why:

Governor of Nevada

MY VOTE:  Christina ‘Chris G.’ Giunchigliani

Casinos and mining have managed to control the Governor’s race for at least the last twelve years. Jim Gibbons and Brian Sandoval have been noted to follow an agenda that has favored those industries over the needs of the citizens of Nevada. This year, the two candidates for Governor that seem to have the nod of casinos and mining are Republican Adam Laxalt and alleged Democrat Steve Sisolak. If Sisolak wins the Democratic primary, Nevada will end up being the stooge of those two industries.

The only plausible candidate is Christina ‘Chris G.’ Giunchigliani. She has a consistent record of Democratic ideals as opposed to Steve Sisolak who has suddenly become a champion of a few Democratic issues. Sisolak has a reputation of being arrogant, unintelligent, and Trump-like in his behavior. He is the ideal candidate that casino overlord Sheldon Adelson would want as his errand boy.

Candidate Chris G for Nevada Governor

All other Democratic candidates lack the support to win in the General election.

U.S. Senate

MY VOTE:  Jacky Rosen

Why not Danny Burleigh? Impotent campaign.

Why not David Drew Knight? He wants more vocational training in public schools. We don’t need to spend more public money to train workers for businesses. Businesses should train their own workers through internships where workers are paid to learn to do the job instead of taxpayers and workers paying for their own industry-specific training.

Why not Sujeet ‘Bobby’ Mahendra? Ignorance. Mahendra wants to reduce corporate and personal taxes in a State that doesn’t have corporate tax and income tax, but has one of the highest rates of violent crime in the U.S. and the worst education system in the U.S. Mahendra is a Soviet Republican running as a Democrat.

Why not Allen Rheinhart? Wants to join with Russia in a fight against fake Islamists? WTF?

Why not Jesse Sbaih? He would be my second choice, but he is inexperienced and would be a weak candidate against the incumbent Soviet Republican Dean Heller.

I have some issues with Jacky Rosen. One red flag is the award she received from the U.S. Chamber of Commerce. That organization has devolved into an extreme right-wing organization, and any recognition by them is not good.

However, she is likely to defeat Heller and she is the best choice of the field.

U.S. House of Representatives District 2

MY VOTE:  Rick Shephard

Why not Dr. Vance Alm? Weak campaign.

Why not Patrick Fogarty? I like his positions on the issues, but I don’t see him as a strong candidate in the General election.

Why not Jesse Douglas Hurley?  Impotent campaign.

Why not Clint Koble? He would be my second choice because of his stance on issues and work with rural communities.

Why not Jack L. Schofield, Jr.? Impotent campaign.

Why Rick Shepherd? Shepherd is passionate about many issues. In everything I read, I couldn’t find any issue with which I significantly disagreed. We need a passionate Democrat to contrast the Good Ole Boy Republican Mark Amodei.

Lieutenant Governor

MY VOTE:  Kate Marshall

Why not Laurie L. Hansen? Impotent campaign.

Why Kate Marshall? Experience, dedication to Nevada, and intelligence.

Attorney General

MY VOTE:  Aaron Ford

Why not Stuart J. MacKie? Impotent campaign.

Why Aaron Ford? Only logical choice and has the experience for the job.

State Assembly District 24

MY VOTE:  Sarah Peters

Why not Edward Coleman? I believe Sarah Peters demonstrates a stronger passion, which I feel is important in battling Republican bullying; however, Coleman seems to be qualified and a strong alternative.

Why not Deonne Contine? There are two issues I have with Deonne that concern me. First, she doesn’t have her children in a public school. I’m not criticizing the personal choice of education for her children, but we need an advocate for public schools and Brian Sandoval has demonstrated that when you don’t have your own children in public school it is easier to cut public school budgets.

My second issue is the funding of her campaign. She seems to have a lot of money to spend, which makes me concerned as to who is pulling the strings in her campaign.

Why not Tom Stewart? Again, the key for me is a passion to move forward and Stewart’s campaign seems a little generic to me.

Why Sarah Peters? I feel Peters has a desire to call out bad decisions and she seems highly intelligent in her assessment of key public issues.

Nevada School District is Missing Children

17 Tuesday Apr 2018

Posted by in About Reno, Aging, All Rights Reserved, Conservatives, Economy, Education, Generational, Government, Higher Education, jobs, labor, Life, Nevada, parenting, Politicians, Politics, Pride, Public Image, Public Relations, Reno, Taxes, The Tipping Point, United States, Women

≈ 4 Comments

Tags

, , , , , , , , , , ,

Nevada’s Washoe County School District is missing children. About 6,500, and no one seems to have noticed. In the last decade (2008 to 2017,) the student population in Washoe County Schools has increased by 291 students. That is a half of one percent increase (0.05%) in ten years. The population of Washoe County has increased by almost eleven percent (10.7%) during the same time period. If the student population grew at the same rate the school district would have 6,500 more students than it does. Where are the missing children?

GRAPH 1.0 – WCSD Growth vs Washoe County Population (1,000’s of people)

Mystery of the Missing Students

The population of Washoe County increased by over 44,000 people from 2008 to 2017. One might expect that the Washoe County schools would have increased by more than 291 students. If the student population had kept pace with the Washoe County population growth, there should be over 70,000 pupils instead of just under 64,000.

Table 1.0 – WCSD student population growth compared to projected growth (Based on Washoe County population. NOTE:  All figures are from WCSD reports.)

Some of the missing students can be found in private schools and public charter schools. Private schools in Washoe County enrolled 3,419 students in 2016-17; however, total enrollment in private schools in Nevada have not changed significantly during the last ten years. Public charter schools account for some of the missing students, but they only enrolled 2,753 students in Washoe County during the 2016-17 year.

Assuming that public charter schools absorbed 1,000 new students during the last ten years, and private schools absorbed 500, there is still approximately 5,000 missing students. It is possible that the growth in Washoe County was primarily adults without children. If that is the case, it may indicate that families aren’t moving to Nevada.

Flat Student Growth Saved Schools

There is a silver lining to the flat growth in Washoe County schools. Prior to 2008, the district was overcrowded and facing a crisis. The flat growth allowed time to ease some of the overcrowding and end some of the desperate measures to handle the situation.

However, Nevada may be facing a bigger crisis. If families are choosing not to move to the State it may be that Nevada’s poor school rankings have finally sealed its fate. No one wants to raise a family in a State that has underfunded schools.

Impotent Taxation: Why Nevada Can’t Have Nice Things

16 Monday Apr 2018

Posted by in About Reno, All Rights Reserved, Business, Conservatives, Crime, Donald Trump, Economy, Education, Entertainment, Ethics, Government, Government Regulation, Higher Education, History, Honor, Housing, jobs, labor, Life, Management Practices, Nevada, parenting, Politicians, Politics, Pride, Public Image, Public Relations, Real Estate, Recreation, Reno, Taxes, Travel, United States, Voting

≈ Leave a comment

Tags

, , , , , , , , ,

Nevada, as a community is not pretty. In fact, it is probably the ugliest State in the nation when it comes to the ‘American Dream.’ Don’t tell that to one of the few citizens (25%) born in the State. Hardcore Nevadans are almost cult-like in the fondness of a State of mostly sagebrush and blowing sand. What Nevada can’t figure out is that it takes money to run a State, and that requires taxes. Nevada doesn’t believe in taxes, they believe in being a failure.

Proud to be the worst…at everything

Nevada Sucks And Has the Rankings to Prove It

Nevada ranks #3 in violent crimes per capita. In education, Nevada is the worst State according to USA Today. Of the best States with the best quality of life, Nevada ranks 43 out of 50, and in the area of social environment, it ranks dead last. Nevada has the 46th worst in the unemployment rate. These aren’t a new downward trend in rankings. Nevada is consistently at the bottom of these rankings.

Nevada is a State everyone points at as the example of what not to do. Companies don’t want to move to Nevada because of the crime, poor education, bad quality of life, which makes unemployment higher.

Nevada Taxation:  Where Rich People Come For a Free Ride

Nevada can’t figure out that it has a taxation problem. More taxes, better schools, lower crime, better quality of life, etc. But Nevada isn’t run by citizens. Nevada is run by the beasts of mining and casinos. It is sad to see how normal citizen rush to defend the monster that feeds on them.

Mining is digging up Nevada’s one-time resources and taking them out of State. Mineral corporations account for over $3 billion dollars of Nevada’s gross domestic product, but mining’s contribution to the State revenues is only one percent. For comparison, Nevada’s cigarette tax contributes four percent to the State budget.

Gaming is the 363 kg gorilla of Nevada politics but pays minimal taxes. The ‘Gaming Tax’ is a tax levied on the winnings of their customers. The ‘Live Entertainment Tax’ is added to the cost of admission. The ‘Room Tax’ is added to the hotel invoice to the customer. The gambler/customer pays the tax, not the casino.

Casino owners like Sheldon Adelson don’t pay income or corporate taxes. They are reaping the money, but not supporting the State of Nevada.

Nothing Else Works

Nevada is the State of blind voters and boot-licking politicians. It is a State that will do anything to avoid fixing the real problem if the solution would impact corporations or the wealthy. The State is has tried everything but the one solution that is obvious:  raise taxes on corporations and the wealthy.

The Silver State is likely to be hit by a perfect storm of economic destruction. The upcoming recession will catch Nevada completely unprepared. Housing prices far exceed the wage-earning potential of the middle class. As jobs collapse, housing will collapse. Underfunded schools, law enforcement, and government services will only get worse.

There is no positive response Nevada will be able to make to an economic downturn. Nevada will become a third world State and the politicians will respond by doing the wrong thing…cutting desperately needed taxes on corporations and the wealthy.

This is why Nevada can’t have nice things.

Hey, Small Hands. Don’t Screw With the U.S. Postal Service

14 Saturday Apr 2018

Posted by in All Rights Reserved, Business, Communication, Customer Relations, Customer Service, Donald Trump, Economy, Ethics, Government, Government Regulation, History, Honor, jobs, labor, Management Practices, Nevada, Panama, Politicians, Politics, Pride, Reno, Russian influence, Taxes, United States, US History

≈ Leave a comment

Tags

, , , , , , , , ,

Republican Head Witch Donald Trump is doing his Kylo Ren tantrum by attacking the U.S. Postal Service for revenge. He’s mad at Amazon’s CEO Jeff Bezos because of fact-based articles about him in the Washington Post. I know, it’s confusing and silly, but aren’t most temper tantrums? The problem is that Trump is threatening to screw up a great service for our country because he has the maturity of a three-year-old.

Much Ado About the U.S. Postal Service

Trump is attacking the U.S. Postal Service because it gives a volume discount to Amazon on shipping its products to its customers. The partnership gives the Post Office vital business income and forces it to be more efficient. Amazon gets better shipping fees that help reduce the cost to its customers, and a delivery service that can handle the volume of packages it ships.

Home Delivery:  What Makes the United States Great

Jeff Bezos owns both Amazon and the Washington Post, so in Trump’s little mind attacking the Post Office is a way to attack Amazon, which is a way to attack Jeff Bezos, which is a way to attack the Washington Post. Yes, Trump is really that immature.

Don’t Screw With a Good Thing

What many citizens may not realize that while the U.S. Postal Service doesn’t break even, it is vital to our country. Most importantly is the security it gives us in sending letters and parcels around the country. In the USA, we take it for granted and become really upset on the rare occasions our mail is lost. That is not the case in many countries.

A person can’t send a letter to someone in Panama and expect it to be delivered. If it is a package, it will almost never be delivered. It takes a very organized, very committed postal service to keep the integrity of delivery that we have in the United States. We trust that we can give something to a stranger and it will arrive at its destination in a reasonable amount of time. That is the exception in the world, not the rule.

The U.S. Postal Service also employees over half a million people in jobs that pay a living wage in communities small and large. For the service we receive, we also have half a million people not looking for a decent job. That has a major impact on our economy.

What About the Alternative Services?

FedEx and UPS have been good competitors with the U.S. Postal Service, but they don’t replace the mail carrier. They even have partnerships with the Post Office to that allow them to focus on more profitable business. They pass off less profitable package delivery that requires more service, such as some residential deliveries with more stops.

Let’s keep the investigations of things that don’t work to the people and services that really have problems…like Donald Trump.

Should Federal Dollars Go To States With Low Taxes?

03 Tuesday Apr 2018

Posted by in About Reno, All Rights Reserved, Business, Conservatives, Donald Trump, Economy, Ethics, Government, Honor, jobs, labor, Nevada, Politicians, Politics, Reno, Taxes, Technology, United States, US History

≈ Leave a comment

Tags

, , , , , , , , , , , , ,

Nevada has no income tax, no corporate tax, no inventory tax, and no capital gains tax. Should the rest of the country be taxed to give money to Nevada? The idea that some State and local governments can avoid taxing their citizens, but expect to receive federal tax dollars is a question of fairness and equity. Perhaps the federal government should base allocations to States based on their willingness to act fiscally responsible?

Virginia State Line

Some States Pull Their Weight

Low Taxes Myth

There is a myth that low State taxes attracts businesses, that in turn, attracts jobs for the citizens. In Nevada, the tax haven does attract companies, but only those that seek to dodge taxes. The Sierra Nevada Corporation is a prime example. They are a private defense contractor that, among other things, seek to become the next privatized NASA.

The Sierra Nevada Corporation sounds like it would be a major employer in Nevada. It is not. Currently, it claims to have over 3,500 employees in 33 locations around the world.  In 2014, about one-third of its employees were in Colorado and the potential job growth is at its Colorado facilities.

However, its corporate headquarters is in Nevada. The company was founded in Nevada; however, the State does not have the caliber of workers needed for the high technology jobs. So why not move the company to Colorado? Because the corporate staff and the company enjoy the tax immunity of Nevada.

Freeloader States

According to WalletHub.com, the ten State governments that are most dependent on federal money are as follows:

  1. Louisiana
  2. Mississippi
  3. Arizona
  4. Kentucky
  5. New Mexico
  6. Montana
  7. Oregon
  8. Tennessee
  9. Missouri
  10. Alaska

These States are the top ten with the lowest taxes on their residents, (with the ranking of federal dollar dependency,) according to USA Today (Taxes on corporations are not included):

  1. Alaska (10)
  2. Wyoming (20)
  3. South Dakota (14)
  4. Tennessee (8)
  5. Louisiana (1)
  6. Texas (21)
  7. New Hampshire (31)
  8. Nevada (36)
  9. South Carolina (29)
  10. Oklahoma (26)

Three of the top five having the lowest State taxes are also among the top ten State governments most dependent on federal money. The residents of another three of the top ten States with low taxes are in the top fifty percent in dependency on federal subsistence.

Five of the top ten States (Alaska, Wyoming, South Dakota, Texas, and Nevada) with the lowest taxes have no State income tax.

Pulling Their Weight

Many States use federal money to supplement their own tax revenue. It is only fair that they should. It is unfair that some States tilt the tax revenue field and expect federal money to replace State revenue. Perhaps it’s time that federal money should be restricted from States that do not have an adequate local and State tax structure to provide a foundation for services for their citizens before federal money is given to them.

Tax Breaks Don’t Work When Everyone is Giving Them

02 Monday Apr 2018

Posted by in About Reno, Business, Conservatives, Donald Trump, Economy, Ethics, Government, Government Regulation, jobs, labor, Lessons of Life, Management Practices, Nevada, Panama, Politicians, Politics, Real Estate, Reno, selling, Taxes, Travel, United States, US History

≈ 1 Comment

Tags

, , , , , ,

The United States of America has a tax problem. We have too many local and state governments using ‘fire-sale’ tactics to attract business through tax breaks. It is a problem caused by conservatives. They have created the myth that taxes hurt business so lower taxes will increase business. The irony is that the strategy that conservatives inflict on government is a strategy that they would laugh at in the business world.

Panama’s strategy of low or no taxes brings in the wrong business

What’s Bad For Business is Bad For Government

When a business puts their products on sale, they do so with the expectation that it will increase business and volume will make up for the lower price. If the sale price is too low the business loses money. In addition, the customer might think there is something wrong with the product when the price is too low. If a company’s competitors match or beat the sale price, everyone loses except the customer. It is not good business.

The same is true for governments. Tax breaks reduce revenue for the maintenance and improvement of local communities. When tax breaks are overused, the community suffers from the lost revenue. The myth is that less tax revenue is more money for everyone only works if the tax break has no significant impact on the quality of the government. In addition, if competing governments are giving the same or better tax breaks the strategy fails for everyone.

In Nevada, the State has no income tax, no inventory tax, no corporate tax, and no capital gains tax. When the state or local government gives a tax break to a business, it is automatically a net loss for the community. Any business moving to Nevada is already coming for the low tax rate and any other break is just giving away money.

Panama’s What Not To Do

Panama has about the same population of Oklahoma. That is not a lot of people for tax revenue purposes. In 1994, Panama passed a law that basically gave a tax break to a property owner for 20 years. It was more complicated than that, but it attracted a lot of foreign investors. What happened?

It attracted people of modest wealth that were looking for only for the tax break. The jobs created were minimal, but it dramatically increased the value of land and property. Citizens of Panama suddenly found that home prices skyrocketed and because many were living as tenants, they had to move when the landlord sold the property for more money.

The end result was no one benefited from the tax strategy but wealthy developers.

Tax Breaks Always Fail

The reality is that tax breaks always fail. Despite thousands of tax breaks being given by local and state governments every year, there is no evidence that they actually have a positive impact on the citizens of the community. Tax breaks for companies don’t create more jobs, increase worker pay, or improve a dying economy. They make rich people richer.

April Fool’s Day is Donald Trump Day

01 Sunday Apr 2018

Posted by in Aging, All Rights Reserved, April Fools Day, Assault Weapons, Communism, Conservatives, Discrimination, Donald Trump, Economy, Ethics, Gender Issues, Generational, Government, Government Regulation, Green, Gun control, Gun Extremists, Health, History, Honor, Mass Shootings, Nevada, Politicians, Politics, Pride, racism, Relationships, Religion, Reno, Respect, Russian influence, Second Amendment, Soviet Russia, Taxes, United States, US History, Vladimir Putin, Women

≈ 2 Comments

Tags

, , , , , , ,

On the third Monday of February, our country celebrates the great Presidents. For Donald Trump, we have a different holiday. For this day the western world can join in a celebration that even predates our country. We used to call it April Fool’s Day, but now we have the poster child of April Fool’s Day as our President.

Our Biggest April Fool

Donald Trump Day isn’t just for the man who became the Resident of the White House, but it recognizes all Trumpsters who adore hu and hu’s foolish ways. It is a day that the new Soviet Republican party can be remembered for their Collective Closed Mind. This is a holiday that has been in search of its people and now its people have been found!

On this special day let’s remember how special Donald Trump and the Trumpsters are as Fools of Humanity. To be a Fool:

  • One must believe that freedom of religion means a Taliban-like State where Christian extremists inflict their made-up racist-based mythology on everyone.
  • A person must accept that gun deaths are caused by non-Trumpsters, and the solution is more guns.
  • One should know that a man has the obligation to rule over women as subservient beings.
  • A person must believe that a book of mythological stories of life written over 2,000 years ago. They should think that it is how we should govern all citizens of the United States of America in the 21st century.
  • One must ignore all facts that contradict what you want to believe.
  • One must read the Second Amendment to the Constitution of the United States of America without the words “militia” and “well regulated.”
  • One can declare that all non-whites are illegal immigrants and that nullifies all laws prohibiting racism.

We Look Forward to the Day

There are many more, but this is a day for Donald Trump and hu’s Trumpsters. Let them speak for themselves. For the rest of us, we look forward to the day when the holiday only reminds us of Trump reign. Remind us of when Soviet Republicanism briefly took over our country. Remind us of why we celebrate April Fool’s Day only once a year, instead of suffering through it all year.

Trump’s Soviet-Style Government

30 Friday Mar 2018

Posted by in Communism, Conservatives, Donald Trump, Economy, Ethics, Generational, Government, Government Regulation, History, Honor, Nevada, Politicians, Politics, Pride, racism, Reno, Republic, Respect, Russian influence, Soviet Russia, United States, US History, Vladimir Putin, Voting

≈ Leave a comment

Tags

, , , , , , , , , ,

Soviet Russia (1917-1991) had an oppressive government where one party ruled with complete authority. Soviet offices were all held by loyal communist party members and corruption was rampant. Donald Trump is creating his own Soviet-style government using the Republican party. They are not concerned about disenfranchising a majority of the citizens, but rather, treat opposing voices as disloyal elements that are to be ignored.

GOP all smiles

The United Soviet States of America?

Lenin’s Vision of His Soviet Party

Vladimir Lenin held the belief that a government could only be run by one person or a small group of people. He also believed that there were only two kinds of people in the world: friends or enemies. Obviously, friends believed what Lenin believed and everyone else was an enemy.

Like Lenin, Donald Trump sees only two kinds of people. His adoring supporters and disloyal people who are his enemies. Trump seems to see himself as a heroic figure in a tragic situation, besieged by his enemies. His inability to accept any responsibility for his failings and poor judgment is part of his leadership style.

Soviets and Republicans:  One Party, One Mind

Lenin divided his party when he demanded that membership must consist of only loyal followers. His groupthink party rejected all other ideas and discussion that contradicted his will. Those who were not loyal were not allowed to participate in his government.

Trump has followed a Lenin-like path with a constant stream of changes in his administration. He has reduced his White House staff to yes-people who do not offer different points of view and seek to please Trump with constant praise and admiration.

Like Lenin, Like Putin, Like Trump

The United States of America defeated Communism by being a nation of diverse ideas and opinions. Debate and compromise have been the strength of our country’s political system. After the fall of Soviet Russia, the idea of open discussion led to chaos in the new Russia. In less than a decade, Vladimir Putin rose to power and built a system of government that was a return to Soviet Russia in all but the name.

Trump is following the example of Lenin and Putin in his attempt to establish a Soviet-style government in our country using the Republican party as his version of the Communist party. If he is successful he will essentially be handing the defeat of the United States of America to Putin and Soviet Russia, 27 years after the fall of communism.

The Sad Life of a Russian Troll (Печальная жизнь русского тролля)

26 Monday Mar 2018

Posted by in All Rights Reserved, Branding, Business, Communication, Donald Trump, Economy, Employee Retention, Ethics, Government, Honor, Information Technology, Internet, jobs, labor, Language, Life, Politicians, Politics, Public Image, Random, Respect, Russian influence, Social Interactive Media (SIM), Technology, Travel, United States, US History, Vladimir Putin, Voting, Website, Writing

≈ 1 Comment

Tags

, , , , , , , , , , ,

It is a statement of life in Russia when one of the best jobs to be had is employment to write fake news stories, deceive people, and attempt to create chaos in other countries. Russian Troll Farms, or Web Brigades, as they refer to themselves, tell us more about Russian life, than about Western gullibility. What follows is my own fake story of an interview with a Russian Troll.

Troll – a mythical creature in folklore living in caves or hills or under bridges as either a giant or a dwarf, typically having a very ugly appearance.

Russia Condos

Living Large in Russia: Condos in St. Petersburg

Interview With A Russian Troll

[NOTE: Some language may be inappropriate for young readers.]

Interviewer:  What’s your job? (Кем вы работаете?)

Russian Troll:  I learned to speak English so I could be paid to agitate and influence people in the United States to vote for politicians like we have in Russia. (Я научился говорить по-английски, чтобы мне могли заплатить за то, чтобы агитировать и влиять на людей в Соединенных Штатах, чтобы голосовать за таких политиков, как у нас в России.)

Interviewer:  How does that help Russia? (Как это помогает России?)

Russian Troll:  It doesn’t, but it makes the Americans suffer like we have to suffer in this shithole country. (Это не так, но это заставляет американцев страдать, как мы должны страдать в этой стране.)

Interviewer:  Why do you do it? (Почему ты это делаешь?)

Russian Troll:  I live in Russia. How else can I pay the bills? (Я живу в России. Как еще я могу оплатить счета?)

Interviewer:  The economy of the United States drives the economy of the rest of the world. If you’re successful, aren’t you afraid of a worldwide economic disaster? (Экономика Соединенных Штатов стимулирует экономику остального мира. Если вы добились успеха, разве вы не боитесь мировой экономической катастрофы?)

[Language warning]

Russian Troll:  Don’t tell me about disaster until you’ve seen the crappy place where I live in the middle of winter. Fuck the Americans. Fuck the rest of the world. They all celebrated when Americans landed on the Moon. They all celebrated when the Berlin Wall fell. Fuck them! (Не говори мне о бедствии, пока не увидишь дерьмовое место, где я живу в середине зимы. Ебать американцев. Трахайте весь остальной мир. Все они отмечали, когда американцы высадились на Луну. Все они праздновали, когда упала Берлинская стена. Трахайте их!)

Interviewer:  What about your children? How will your work help them? (Как насчет ваших детей? Как ваша работа поможет им?)

Russian Troll:  Who cares? Did anyone care about me when I was a child? For the last twenty years no one cares, so why should I care? (Какая разница? Кто-нибудь заботился обо мне, когда я был ребенком? За последние двадцать лет никто не заботится, так зачем мне это волновать?)

Interviewer:  You mean the last twenty years when Vladimir Putin has led your country? (Вы имеете в виду последние двадцать лет, когда Владимир Путин привел вашу страну?)

Russian Troll:  Exactly!…No, wait. YOU TRICK ME! (Quickly looks around) No, Putin has been good. I mean Putin has been great. Great! Putin is a great leader! (Точно! .. Нет, подожди. ВЫ ТРЕТЬЕ МЕНЯ! Нет, Путин был хорош. Я имею в виду, что Путин был замечательным. Большой! Путин – великий лидер!)

Interviewer:  What does a Russian troll do after they leave the Farm? (Что делает русский тролль после ухода из фермы?)

Russian Troll:  First of all, we are not a Troll Farm. We are a Web Brigade! We fight a war against the Free Countries of the World! We will bring them to their knees! Second, when I finish here I will be rich! I will never have to work again! I will move to America and be a…how you say,…big?, BIG, yes?, I will be a big man! You will know me by my shiny red sports car! (Прежде всего, мы не Ферма Троллей. Мы – веб-бригада! Мы ведем войну против Свободных стран мира! Мы поставим их на колени! Во-вторых, когда я закончу здесь, я буду богат! Мне больше никогда не придется работать! Я перееду в Америку и буду … как вы говорите, … большой?, БОЛЬШОЙ, да ?, Я буду большим человеком! Ты узнаешь меня своим блестящим красным спортивным автомобилем!)

Trump’s Tariffs Are For Putin

25 Sunday Mar 2018

Posted by in 1968, All Rights Reserved, Apollo, Business, College, Conservatives, Donald Trump, Economy, Ethics, Exploration, Government, History, Honor, labor, NASA, Politicians, Politics, Pride, Russian influence, Saturn V, Space, Trade deficit, United States, US History, US Space Program, Vladimir Putin

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , ,

Everyday Donald Trump proves his actions are guided by, or primarily for, Vladimir Putin. Anyone asking why is Trump pushing for tariffs on steel and aluminum against China should really be asking, “What’s in it for Putin?”

Vladimir Putin’s Trump Card

It should be noted that Vladimir Putin’s motivations are better understood if a person understands his background.

Vladimir Putin:  A Soviet KGB Agent With A Grudge

Space Race

The USSR launched Sputnik 1 three days before Putin’s fifth birthday. He was six when Luna 1 became the first human object to leave Earth’s orbit. On his seventh birthday, Luna 3 transmitted the first images that human’s had ever seen of the far side of the Moon. He was almost eight when the Soviets put the first animals into space and safely returned them on Korabl-Sputnik 2 (known as Sputnik 5 in the USA.) He was eight when the Soviets sent Venera 1 to Venus followed by the first man in space on Vostok 1, followed by the first human to spend over 24 hours in space on Vostok 2.

From age nine to age fifteen, Putin saw his country continue to beat that United States in space with the following achievements:  [Source:  Wikipedia]

USSR Space Race Achievements

It was the Golden Age of the USSR.

When Putin turned sixteen his country’s leadership in space was suddenly lost to the United States. The world cheered as Apollo 8 took the first men around the Moon in December of 1968. Then the world held it’s breath as Neil Armstrong stepped onto the Moon in July of 1969. Everything Putin’s country had accomplished in space exploration in a decade was eclipsed by the United States of America in less than a year.

Vladimir Putin’s 1975 Thesis

Vladimir Putin studied law in college, but his thesis was focused on economics. The title of his thesis was, “The Most Favored Nation Trading Principle in International Law.” In his thesis, Putin clearly establishes the importance of USSR’s raw materials:

Mineral and raw materials represent the most important potential for the economic development of the country.

Translated from Vladimir Putin’s 1975 Thesis

He noted the need for Soviet extraction industries to compete with the Western world:

…which could compete as equals with the transnational corporations of the West.

Translated from Vladimir Putin’s 1975 Thesis

And the need for the government to do everything necessary to help the extraction industries compete:

…the state must assist the development of processing industries based upon the extraction industries in every way.

Translated from Vladimir Putin’s 1975 Thesis

Putin knew in 1975 the critical role the Soviet natural resources would play in the advancement of the USSR. The world trade of raw material is central to Putin’s plan for his country.

KGB For Life

Vladimir Putin KGB

Putin:  KGB for Life

Immediately after he graduated, Putin joined the KGB. He was taught German and his cover was to be an interpreter. Putin had a front row seat to the fall of Communism from his station in East Germany. For the second time in his life, he watched his country be humiliated while the West celebrated.

He continued to work as a KGB agent after the fall of the Berlin Wall. He moved back to Russian and joined the University he graduated from to scout for new KGB recruits. While he claims to have resigned his position in the KGB, he has never done anything in his life that hasn’t been directed in some way to defeating his enemies. Putin is not a politician, he is a tactician.

Trump’s Tariff Fixation

It is clear that Donald Trump is under the influence of Vladimir Putin. Putin groomed Trump for decades and now it’s paying off. Russia cannot compete with its raw materials in the world market unless something drastic happens, such as a major trade war. Trump’s behavior on tariffs is leading to exactly what Putin desires. 

For Putin, it’s a perfectly staged economic and political win for Russia. It advances the sale of Russia raw materials and humiliates his arch enemy, the United States. It is payback for the space race and the fall of the USSR. All thanks to Donald Trump. 

Why Are Conservatives Anti-Society?

13 Tuesday Mar 2018

Posted by in Aging, All Rights Reserved, Business, Conservatives, Discrimination, Donald Trump, Economy, Education, Ethics, Gender Issues, Generational, Government, Government Regulation, Gun control, Gun Extremists, Higher Education, History, Housing, labor, Nevada, Politicians, Politics, racism, Religion, Reno, Respect, Second Amendment, Taxes, United States, US History, Voting, Women

≈ 1 Comment

Tags

, , , , , , , , , , , , , , ,

The conservative agenda is not society friendly. It is designed to benefit few and ignore the rest. The ideology of conservatism is based on an idea of keeping what is perceived to be good and avoiding risk-taking in the future. It assumes that there will be winners and losers so life is about making sure they are the winners.

Fear and Hate are the Entrees for Conservatives

Religions As Safe Harbor For Conservatives

Religions are typically conservative because most religions are built on a paradigm of preserving past traditions. Even the Christian religion is filled with rules and rituals that preserve the thinking of the past and are resistant to change. This is why so many Christians identify themselves with conservative thinking.

The idea that everyone is worthy and equal is usually rhetoric in religions mixed with a condescending effort to help those less fortunate. Often religions and conservatives blame the less fortunate for their own problems. They are the losers and a conservative often consoles hu’s* conscience by making offerings or volunteering to help the less fortunate.

A Liberal Perspective is in Direct Conflict with a Conservative

A conservative, by definition, is focused on preserving what they believe with the assumption that any other belief is irrelevant. It is easy to understand why anyone who has a liberal perspective is worthy of ridicule to a conservative because liberals tend to have a less cynical view of humanity.

Conservatives are driven by fear and self-preservation, while liberals are driven by hope. Conservatives need to believe that they are under threat. Examples of conservative thought consumed by selfishness and fear are:

Taxes

All efforts in a society should be of direct benefit to the person paying taxes. Any money spent for the welfare of others is a target to conservatives and considered a waste of money. Conservatives often use rare examples of waste to ridicule spending for the benefit of less fortunate.

Gun Ownership

Conservatives use their fear of humanity to base a belief that a system of laws and impartial judgment are not effective. Conservatives believe that they should have the right to judge the actions of another person and execute them without trial. To the conservative, the term ‘defense’ justifies the instant execution of an unarmed person based on hu’s fear of that person.

Immigrants

Conservatives typically interchange hu’s racists beliefs with issues that target a particular race. Even though there is no significant immigration problem in the United States, conservatives manufacture a fear that immigrants are a threat. Immigration enforcement targets non-Caucasian races and typically ignore Caucasians.

Women

Historically women have endured a subservient role in society. Conservatives want to preserve that subservient role and consciously and unconsciously act as if women are a lesser gender. In religion, a fear of women has pushed them into a role of service to men and the church.

Conservatives Anti-Society

The problem with conservative ideology is that the fear and hate of non-conservatives places them as the adversary of society. It divides the population, often along the lines of race and power. In their mind, everything is an ‘us-versus-them’ battle regardless of a lack of evidence.

This attitude impacts the effectiveness of our society as the concept of a few winners is at the expense of the rest of the population. 

(*’Hu’s’ is a pronoun meaning ‘his’ and/or ‘hers.’)

Time To Stop Changing Time? Why We Need Daylight Saving Time All Year

11 Sunday Mar 2018

Posted by in About Reno, Aging, All Rights Reserved, Astronomy, Daylight Saving Time, Economy, Generational, Government, habits, Health, History, Lessons of Life, Mental Health, Recreation, Reno, Science, solar, Space, Technology, Travel, United States, US History

≈ Leave a comment

Tags

, , , , ,

Many people dislike the two days of the year we go to or revert from Daylight Saving Time (DST.) It requires changing the clocks and adjusting to the new rhythm of our activity related to the rise and set of the Sun. It is annoying and, as a species, annoyance is a prompt for finding a solution. Perhaps it is time to stop changing time.

A Problem of Degrees

We should recognize that the length of day is only an issue for those living between 30° and 70° latitude. The length of day within 30° of the equator doesn’t radically change from summer to winter. Above 70° latitude, the Sun sets for weeks or months during the winter and there are not many people living that close to the poles.

For those living between 30° and 70° latitude, there is an undeniable problem. Reno, Nevada, USA is at 39° north latitude. At the summer solstice, the day is almost 15 hours long and sunrise is at 5:30 am under Daylight Saving Time. If we did not have DST, the sun would rise at 4:30 am.

A Diurnal Vespertine-Adapted Species

In an agrarian economy, working in the field is easier during daylight hours. In that situation, time is relative to a solar schedule; however, in an interactive urban economy, working in shops and offices is more suitable for a common clock schedule.

After artificial electric light became the standard, and after the population moved into cities, we became a diurnal, vespertine-adapted species. Most of our country’s population works during the daylight hours and participates in non-work activities in the evenings. Today, most people are not active before six in the morning, but they remain active until 10 pm or later.

Sunrise before 6 am disturbs the typical sleep patterns of humans, and light later into the evening is more suitable for evening activities. Daylight Saving Time creates a favorable environment for a later sunrise and more sun in the evening. 

Daylight Saving Time Year Round

Standard Time was traditionally based on the position of the Sun at High Noon. That approximately divided the daylight into Morning and Afternoon. We no longer use High Noon as the foundation of Standard Time; however, it is an artifact of a primarily agrarian economy. Daylight Saving Time was used to adapt the clock to human behavior as we moved from the farms to more urban living.

Time is a human invention. It should serve the needs of humans. It would seem it is time to stop punishing humans with Standard Time and remain on Daylight Savings Time for the entire year.

Leadership Madness: Time To Check Trump’s Urine Color

08 Thursday Mar 2018

Posted by in Aging, All Rights Reserved, Crisis Management, Economy, Ethics, Generational, Government, Government Regulation, Health, History, Lessons of Life, Management Practices, Mental Health, Politicians, Politics, Public Image, racism, Republic, Russian influence, Taxes, The Tipping Point, United States, US History

≈ Leave a comment

Tags

, , , , , , , , , ,

King George III was an odd man in his later years. Sometimes talking without stopping for hours. He had a vengeful hate for the United States and hoped to war with our country incessantly until our spirit was destroyed. King George had episodes of odd behavior and his urine was allegedly blue. He was the focus of the American colonies desire to gain independence, and he was considered ‘mad.’ Maybe it’s time to check Donald Trump’s urine.

Enablers Surround Donald Trump

Destroyer of Nations:  Diarrhea of a Leaders Thoughts

The final analysis of King George III’s reign is that he didn’t have the disease (porphyria) that turns urine purplish but rather had a bipolar disorder possibly caused by arsenic poison. His behavior towards the American colonies was a major factor in the cause of the American Revolution and his need to express himself verbally and in written words inflamed the situation.

A sentence containing 400 words and eight verbs was not unusual. George III, when ill, often repeated himself…

Historically, when a leader of a country becomes aggressive and vengeful, it often creates the devastation of that nation. Hitler, Mussolini, and even the Emperor of Japan took an aggressive stand that destroyed their countries. Aggressive and vengeful political leadership is a dangerous sign in for the well-being of its citizens.

Donald Trump is out of control, much like King George III. He is randomly lashing out and leaving his closest supporters desperately trying to explain his actions. We have never had a leader of the United States so out of balance in his words and deeds. He is a man who believes that he is unstoppable.

Leadership Madness:  Raiding the Vault In the Chaos

The problem is that the Republicans in Congress are using this as an opportunity to take outrageous steps motivated by greed and ideology. They have no motivation to intercede and bring back stability. Our government was designed to have checks and balances but we are in a situation where that concept has become impotent.

Civility is a delicate balance of a conscious effort by a society. When that balance is destroyed there is no easy way to restore it. It is a crime for which everyone is punished.

Trump’s Trade Deficit Talk Proves Lack of Knowledge

07 Wednesday Mar 2018

Posted by in All Rights Reserved, Business, Donald Trump, Economy, Education, Ethics, Generational, Government, Government Regulation, History, jobs, labor, Management Practices, Nevada, Politicians, Politics, Public Image, racism, Relationships, Russian influence, selling, Stock Market, Taxes, Technology, Trade deficit, United States, US History

≈ Leave a comment

Tags

, , , , , , , , , , ,

Trade deficits are bad. Everyone knows a trade deficit is bad. So when a person goes to a store and buys a product they have a trade deficit with that store. That’s bad, correct? They have the product that has value but they don’t have the money. The person has less money and the store has more. That is a trade deficit. So why don’t we build, mine, and/or grow everything so we don’t have a trade deficit?

Tariffs and Trade Wars Kill an Economy

Kai Ryssdal of American Public Media’s (APM) Marketplace had Ryan Kailath explain this on Tuesday using a sandwich shop. The point he made with his report was that we don’t ‘lose’ money in a trade deficit. It’s a point that Mr. “Art of the Deal” Donald Trump should understand, but his words and actions indicate he that he doesn’t understand the basics of international trade.

Trade Deficit:  It’s Not Just About Jobs

Many people focus on jobs when discussing the trade deficit. When other countries make stuff that we buy they create jobs for people in their country. It’s easy to argue that when they have the jobs, we don’t. That’s not necessarily true, nor relevant.

We are the 362.874 kg gorilla in the room when it comes to buying goods. We don’t need menial jobs that pay low wages in this country. We have spent a lot of money to educate people so they don’t have to work menial jobs for low wages. We need jobs that challenge workers and the pay living wages.

Buying inexpensive materials and goods from other countries we put those types of jobs there and have the products to use and raw materials for final manufacturing at a lower cost than if we did the work in this country. We save money and resell those products at a profit, but lower cost.

We create jobs in the secondary outcome of trading with other countries. That system may create a trade deficit, but that is a good thing. Trade deficits mean that a country is saving money because let’s face it, why would a company pay for a product that they could build here for less cost?

Managing a Trade Deficit

Protectionists believe that the United States is the center of the universe. They want to create a trade war with other countries because they believe our country doesn’t need them. It is driven by a racist point of view. Protectionists believe that our economy would be perfect if we didn’t interact with any other country. It is a childish mentality that is fatal in an adult world.

A trade war using taxes and tariffs to prevent trade doesn’t create jobs in the United States. A trade war makes businesses import products at a higher cost and makes other countries angry. A trade war is akin to telling your local grocer that you are going to charge them to allow you to buy food.

Trump is about to ignite a fuse that will blow our country up. The “Art of the Deal” guy isn’t artistic, and he’s giving our country a bad deal.

My Imaginary Interview with Marketplace’s Kai Ryssdal

27 Tuesday Feb 2018

Posted by in Business, Economy, Entertainment, Ethics, Journalism, Marketing, Passionate People, Politicians, Politics, Public Image, Public Relations, Stock Market, Taxes, Technology, Traditional Media, Writing

≈ Leave a comment

Tags

, , , , , ,

Me:  He’s a man who is all business when it comes to business. Kai Ryssdal is the voice of Marketplace, and for the unenlightened, it is a half-hour business news radio show produced and distributed by American Public Media on public radio stations five days a week all over this country. He has been in his current role for 13 years. A graduate of Emery University, then eight years in the Navy, a Navy pilot, worked in the Pentagon, MA from Georgetown, U.S. Foreign Service in Canada and China, even a stint with California Public Radio…tell me, sir, you are a Renaissance Man are you not?

Radio host Kai Ryssdal

Kai Ryssdal: Host of Marketplace

Kai:  I’ve done some things, but I’m not sure what the test is for qualifying as a Renaissance Man.

Me:  Fair enough. Since you’ve been in the big chair at Marketplace the show has won some awards. Edward R. Murrow Prize, an Emmy, awards from radio news directors, and some 12 million listeners. What defines the success of your show?

Kai:  What defines the success of the show?

Me:  When people say Marketplace is a great show because….

Kai:  What we do, or at least is our goal, is to make the issue understandable. If we can’t get someone in her or his car listening to our show to have an a-ha moment on the topic we are discussing, we’ve missed the mark.

Me:  You’ve said the term ‘Marketplacey’ in other interviews. You’ve described it, I believe, as a type of rhythm, a style that is unique that defines the show. Why does it work?

Kai:  I’m not sure I can answer that question. I can tell you that I think it is a style that expresses a serious, but relaxed treatment of the subject matter. It’s not too formal, nor too casual. We try to keep out the political agenda and focus on what is the structure of the problem.

Me:  Might some say you trim down the problem too much? Interviews on Marketplace tend to be short and include the view of only one person, correct?

Kai:  We try to do a mix of viewpoints, but we don’t try to do the point/counterpoint interviews. We try to break issues down into small components and cover them in several segments.

Me:  Is it investigative reporting?

Kai:  Not in the sense that we are digging up a secret and exposing it to the world. Our mission is more to educate and illuminate, not uncover.

Me:  But doesn’t that mean you control the process?

Kai:  I’m not sure I understand your point.

Me:  Do you decide what people learn about an issue? Do you shape the issue for the listener?

Kai:  Not with a nefarious intent, but we do clear away the clutter of the issue so a person with little or no experience in the subject can understand the details of the problem.

Me:  Okay, we’ll have to leave this here. Kai, thank you for your time.

Kai:  Thank you.

Space Exploration Isn’t Profitable, It’s Transformative

16 Friday Feb 2018

Posted by in Apollo, Business, Economy, Education, Exploration, Falcon Heavy, Generational, Government, Higher Education, History, Lessons of Life, Management Practices, NASA, Passionate People, Politics, Pride, Saturn V, Space, SpaceX, Taxes, Technology, Travel, United States, Universities, US History, US Space Program

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , ,

Space exploration ROI (return on investment) sucks. Exploration doesn’t make money, it costs money. It’s not a place for private business. If the question of space exploration is, “What’s in it for me?” you’re asking the wrong question. Space exploration isn’t profitable, but it is transformative.

Apollo Saturn V

The five massive Rocketdyne F-1 engines of the Apollo Saturn V first stage booster. Twice the lift of SpaceX’s 27-engine Falcon Heavy

Exploration Creates Economic Growth

In the 15th century, when the government of Spain financed Columbus to explore a new trade route to the markets in Asia, he discovered the Caribbean. He brought back a few captured natives from the Bahamas, some gold, and a few birds. It didn’t pay for the cost of the voyage.

But what came next transformed Spain and Europe. The year of the discovery of the Americas (1492) is considered the start of the Golden Age of Spain. After Columbus first voyage to the new world, Spain continued with more voyages, and eventually the full exploitation of Central and South America. Most historians focus on the resources that were returned to Spain, but what happened at home was even more important. 

Shipbuilding entered a new phase of design and construction. Jobs at home created a new wealth for the working class. Craftsmen, as well as sailors, became vital to the needs of the Age of Discovery. That new wealth created secondary jobs, along with new businesses selling imported goods. All of this economic growth was a direct result of the exploration pushed forward by the government of Spain.

Exploration created massive economic growth for decades, but exploration didn’t give an immediate ROI for Spain.

The Model Space Program

Not all space programs are successful. The Soviet space program became mired in conflicts between good science and engineering versus political priorities. The administration was pushed into risky decisions and failure was not without punishment. In addition, new technology was considered a State secret so the development of commercial uses was not an option.

The United States approach for the space program was for the use of non-military government oversight of private contractors. The government remained accountable to the voters, which kept both the government and their contractors in a stable environment for decision making.

The result was a massive increase in highly-skilled, well-paid jobs that created a new wealth for the middle class. Space exploration supercharged the United States economy and created new technology that continued to develop for decades after the Apollo program ended. It was the model space exploration program.

A Failure of Vision

Once the United States had landed on the Moon conservatives and liberals united to kill the space program. Liberals could only see the money being spent to explore space as money that could have been used to help the poor. Conservatives could only see money not going into their pockets. As it would turn out, both viewpoints were flawed.

Money spent on for space exploration created new, high paying jobs that created a need for improved education and pumped billions of dollars into the economy that created new tax revenue that could be used for government programs to help the poor engage in the new economy.

The flood of new money into the economy helped small companies grow dramatically while increasing profits. It didn’t result in the wealthy becoming dramatically richer, but it did create prosperity that helped everyone.

Missing Greatness

Today the United States is wading in a stagnant economy. Wages aren’t growing as fast as prices are rising. The available jobs pay so poorly that they aren’t worth the cost of working them. If we are missing greatness, it is because we are killing our economy with a focus on profit for a few.

The goal of private business is never to create jobs, nor is it to create high paying jobs. Jobs are created when business has been given a mission to accomplish something. Giving tax breaks does not give business a reason to create more jobs, nor pay employees more.

However, if our country made a serious commitment to the goal of expanding space exploration, and funded it with the tax breaks we are giving billionaires, we would see our economy transformed. It is that simple.

Corp USA: “The Stock Market Requires We Underpay You”

15 Thursday Feb 2018

Posted by in Aging, Business, Economy, Employee Retention, Ethics, Management Practices, Public Image, Public Relations, Stock Market

≈ Leave a comment

Tags

, , , , , , , , ,

The stock market face plant last week proves one thing. The investor economy is based on human cruelty. Repeatedly analysts gave a reason for the mini-crash in the stock market:  Fear of wages finally moving upward. Investors like it when wages don’t keep pace with inflation, but the moment they fear that wages might increase the stock market tanks.

Dow Jones Face Plant

Dow Jones (DJIA) drops with fears of higher wages

Analysts explained that higher wages would lead to inflation, which makes investors look smart, not cruel. So, was inflation the real reason, or was it just about higher wages?

It’s About Wages Stupid

Fortunately, this week gave us the answer. The measure of inflation is the Consumer Price Index (CPI.) This week the latest CPI report came out for January. If the CPI was up, it would confirm the fear of inflation, if not, then all was well and the stock market would continue to climb.

The CPI news?

Eight straight months of higher consumer prices

The CPI went up, big time. It was confirmed. Inflation is here…but wait, where is the big fall in the stock market? Why is it going up? You guys, it’s inflation! You’re not supposed to invest when inflation is on the rise! That’s what you said last week!

No surprise here. Investors don’t like workers getting more pay. Inflation has nothing to do with investor fears. Eight straight months of increased consumer prices and January has the largest increase, so inflation is real, but investors don’t seem to care.

The truth is that corporations and investors don’t like higher wages for working people. It is a threat. Investors wear their heart on their stock chart when it comes to better wages. The steady growth in the stock market while wages remained stagnant for workers is the best indicator how a rising stock market reflects the depravity of investors.

Stock Market Symptom of Great Depression, Not Cause

05 Monday Feb 2018

Posted by in About Reno, Business, Crisis Management, Economy, Ethics, Generational, Government, Government Regulation, History, Housing, Management Practices, Politicians, Politics, Real Estate, Taxes, The Tipping Point, United States, US History

≈ Leave a comment

Tags

, , , , , , ,

Investors seem to be the last to know that the economy is a disaster. It is true that the downturn in the stock markets can trigger negative reactions in the economy, but those reactions are an acknowledgment of existing problems, such as low wages, overextended on loans, etc. In every case of an economic downturn, the stock market was a symptom of the larger economic failures and not the cause of the downturn.

Marchers seeking jobs

Post-Great Depression Life

Investor Greed-Based Denial

Investors are notorious for lying to themselves. The primary motivation of an investor is to make more money and that motivation compromises his ability to make informed judgments. Most investors and the computer-based programs they use are focused on what the crowd is doing. Investors review and respond to company and industry issues, but even if the facts indicate a problem that might threaten the future of the stock value, most investors will follow the actions of the rest of the market over any contrary information.

Stock Market:  It’s About Buying Stupid

Stock markets are ruled by buyers. If most investors want to buy a stock the value goes up. If most investors don’t want to buy the stock the value goes down. Individual stock values are driven by buyers.

However, when investors realize that major economic factors and/or significant world events will have a negative impact on all stock values, the markets collapse. A market crash occurs when sellers of stocks can’t find any buyers at any price. That is why some market collapses have been stalled by a major investor buying up stock to prop up the values of the larger market.

Economic Factors of the Great Depression

The major underlying economic causes of the Great Depression were low wages, weak consumer buying, high consumer debt, and depressed agricultural prices. Despite these warning signs investors continued to speculate on higher and higher stock values. They figuratively ran off the cliff unaware that there was no ground underneath them.

1929 Stock Market Crash

The Dow Jones Industrials 1929 Crash

The irony is that investors had multiple warnings before the big crash on 29 October 1929. In March and May of that year, the stock markets experienced mini-crashes that were warned of economic dysfunction; however, by June investors were back to rampant speculation. By September the stock markets began to stumble leading to Black Thursday (24 October) and Black Monday (28 October) and finally Black Tuesday (29 October.) After that, no one held any delusions of the state of the economy.

Market Crash Indicators:  Rapid Advances, Wild Speculation 

It is consistent that rapid growth and high exchange volumes in the stock markets are the best predictors of an impending crash. As the key indicators warn of economic downturn investors seem to move into a frenzied state of buying and selling. This behavior suggests that investors are aware of the coming downturn and are attempting to pass around stock as fast as possible to make money at a high value, but then selling off the stock before its value collapses.

DJIA 10 years

2017 DJIA indicates a frenzied feeding event

2018 Looks Familiar

The economic situation of 2018 has many similarities to the 1929 pre-Depression environment. Wages have been stagnant for decades. Consumer debt is high and consumer savings is low. Multiple economic factors such as housing prices are out of touch with reality.

The scariest indicator predicting a downturn is the frenzied volume of shares being bought and sold. It indicates that investors are attempting to play ‘hot potato’ stocks in an attempt to harvest their value while the market is going up, but sell the stock quickly to avoid being caught before the stock market crashes. The current markets have no confidence in the future of our economy and that is more revealing than anything investors actually say in public.

[COUNT TO 500:  494th Article in PAULx]

Housing Prices Edge Closer to Catastrophe

04 Sunday Feb 2018

Posted by in About Reno, Business, Crisis Management, Customer Service, Economy, Ethics, Generational, Government, Government Regulation, History, Housing, Real Estate, Taxes, The Tipping Point, United States

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , ,

For the last twenty years, the United States has been building a tower of paper wealth. Over time the paper value of homes on the market has far outpaced inflation and wage growth. The current realty market has little connection to reality and we are on the brink of a housing catastrophe.

Price With No Reality Check

The real estate market is inherently flawed. Some claim that it is a perfect example of supply and demand, but that is not accurate. Real estate is the perfect example of a capitalistic market where common sense and ethics are overlooked because greed has blinded the people involved.

Prices exceed the bubble of 2007

Home Prices Heading Toward a Cliff

Housing prices are not governed by a person’s (or family’s) ability to pay. They are governed by a real estate professional who has a financial interest in driving the price up, and an owner that wants as much money as possible. The buyer taking all the risk and if the housing prices don’t continue upward, they lose.

So why would anyone buy a house when prices are already too high?

The ‘Investment’ Loophole

Historically, the one house, one owner or owner-occupied concept kept a check on housing prices. If the buyer couldn’t pay the mortgage, he or she would lose their home. That was a big risk. Today’s investment buyer risks little if anything if they can’t pay a second home mortgage. She or he may lose the home if the investment fails but is a loss of potential future revenue and not a personal crisis.

Investment housing creates artificial shortages because one owner can own multiple homes, removing those from the overall inventory. The lower the supply, the higher the price. In 2016, the number of owner-occupied homes in the United States was 63.6%. California’s owner-occupied rate is 55.3% and at $524,000, its median home price is over double compared to $206,300 for the United States.

Median home price in four cities compared to U.S. average

Another 2007?

The current median price for a home in the United States is higher than it was during the housing bubble in 2007. Any shock to the economy would erase the paper home value and flood the market with another round of investment homes being dumped on the market.

It is a crisis that is easy to anticipate, but no one does. When the next recession hits the United States will once again suffer through a massive drop in housing prices as multi-house owners dump their investment homes and walk away.

[COUNT TO 500: 493rd Article in PAULx]