Small Town Destruction
In my job I drive through small towns throughout the southeast U.S. It saddens me to see these former, vibrant communities withering away. Most people would find easy reasons for the local downfalls, like manufacturing plants closing. There is some truth to this, and of course the long-term trends in demographics point toward moves toward the suburbs, but I would argue the root cause is the locally self destructive historic actions of the communities themselves. I believe there are three distinct errors.
First, "we need a bypass." One can follow US441, US301, or US1 in Georgia and Florida to see numerous examples. Beautiful towns are bypassed by high speed highways giving no reason to slow and take a look. The land on the bypass is commercialized by modern developers building look-a-like cheap structures found anywhere in America. The unique downtown charm of Main Street is then left to die. Ironically, my Garmin GPS has routed me through many towns, instead of the bypass, as the shorter faster route. I have enjoyed this scenic discovery and reminder of small town charm, and enjoy the scenery of the plantation homes, brick buildings, and unique architecture versus the lackluster appearance of the bypass.
Second, “we need a national retailer.” Too often a local lobby to bring a national big box store to town under the guise of job creation turns into job shift and tax incentives amounting to bribery. Sadly, locally spent dollars give way to money transfer outside the local economy. Given the option between a national retailer and a local merchant, most consumers will choose the big store. The Main Street hardware, grocery or auto repair store, where they know your name, is wiped out by the faceless corporation. Of course, the box store provides amenities like longer hours and opening Sundays, but the minimum wage employees don't know the products, customer names, or industry in which they are selling.
Third, “we can’t have alcohol sales.” Respectfully the values of the conservative South must give way to allow beer and wine sales at local restaurants. The primary revenue stream for restaurants is drinks: soda and tea for $2.00, beer and wine for as much as $5.00 a glass. Without this joyful elixir food choices are not gourmet, but relegated to diner-style, low-end choices forcing consumers to look for other options. My preference would be the locally-owned unique establishment with an atmosphere conducive for business or a romantic evening. These establishments spawn the growth of nearby merchants because there is now a reason to be downtown.
Our own town of Cleveland, Georgia is facing tough decisions, but it appears the local political establishment has opened themselves to public opinion. Next time you travel I encourage you to avoid the highway and take a trip through the nearby small towns. Avoid the bypass; choose the “business” route. Don’t eat at a national chain, but find a local restaurant. If you need something, stop at a local merchant, not a national box store. The recipe for success is not difficult, but sadly undoing the prior destruction, or motions set in place, is nearly impossible.
Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts
Wednesday, July 13, 2011
Friday, July 01, 2011
How Small Towns Can Survive (Cleveland, GA)
The following column appeared in the "White County News" 6/30/2011 where I was a guest columnist.
In my job I drive through small towns throughout the southeast U.S. It saddens me to see these former, vibrant communities withering away. Most people would find easy reasons for the local downfalls, like manufacturing plants closing. There is some truth to this, and of course the long-term trends in demographics point toward moves toward the suburbs, but I would argue the root cause is the locally self destructive historic actions of the communities themselves. I believe there are three distinct errors.
First, "we need a bypass." One can follow US441, US301, or US1 in Georgia and Florida to see numerous examples. Beautiful towns are bypassed by high speed highways giving no reason to slow and take a look. The land on the bypass is commercialized by modern developers building look-a-like cheap structures found anywhere in America. The unique downtown charm of Main Street is then left to die. Ironically, my Garmin GPS has routed me through many towns, instead of the bypass, as the shorter faster route. I have enjoyed this scenic discovery and reminder of small town charm, and enjoy the scenery of the plantation homes, brick buildings, and unique architecture versus the lackluster appearance of the bypass.
Second, “we need a national retailer.” Too often a local lobby to bring a national big box store to town under the guise of job creation turns into job shift and tax incentives amounting to bribery. Sadly, locally spent dollars give way to money transfer outside the local economy. Given the option between a national retailer and a local merchant, most consumers will choose the big store. The Main Street hardware, grocery or auto repair store, where they know your name, is wiped out by the faceless corporation. Of course, the box store provides amenities like longer hours and opening Sundays, but the minimum wage employees don't know the products, customer names, or industry in which they are selling.
Third, “we can’t have alcohol sales.” Respectfully the values of the conservative South must give way to allow beer and wine sales at local restaurants. The primary revenue stream for restaurants is drinks: soda and tea for $2.00, beer and wine for as much as $5.00 a glass. Without this joyful elixir food choices are not gourmet, but relegated to diner-style, low-end choices forcing consumers to look for other options. My preference would be the locally-owned unique establishment with an atmosphere conducive for business or a romantic evening. These establishments spawn the growth of nearby merchants because there is now a reason to be downtown.
Our own town of Cleveland, Georgia is facing tough decisions, but it appears the local political establishment has opened themselves to public opinion. Next time you travel I encourage you to avoid the highway and take a trip through the nearby small towns. Avoid the bypass; choose the “business” route. Don’t eat at a national chain, but find a local restaurant. If you need something, stop at a local merchant, not a national box store. The recipe for success is not difficult, but sadly undoing the prior destruction, or motions set in place, is nearly impossible.
In my job I drive through small towns throughout the southeast U.S. It saddens me to see these former, vibrant communities withering away. Most people would find easy reasons for the local downfalls, like manufacturing plants closing. There is some truth to this, and of course the long-term trends in demographics point toward moves toward the suburbs, but I would argue the root cause is the locally self destructive historic actions of the communities themselves. I believe there are three distinct errors.
First, "we need a bypass." One can follow US441, US301, or US1 in Georgia and Florida to see numerous examples. Beautiful towns are bypassed by high speed highways giving no reason to slow and take a look. The land on the bypass is commercialized by modern developers building look-a-like cheap structures found anywhere in America. The unique downtown charm of Main Street is then left to die. Ironically, my Garmin GPS has routed me through many towns, instead of the bypass, as the shorter faster route. I have enjoyed this scenic discovery and reminder of small town charm, and enjoy the scenery of the plantation homes, brick buildings, and unique architecture versus the lackluster appearance of the bypass.
Second, “we need a national retailer.” Too often a local lobby to bring a national big box store to town under the guise of job creation turns into job shift and tax incentives amounting to bribery. Sadly, locally spent dollars give way to money transfer outside the local economy. Given the option between a national retailer and a local merchant, most consumers will choose the big store. The Main Street hardware, grocery or auto repair store, where they know your name, is wiped out by the faceless corporation. Of course, the box store provides amenities like longer hours and opening Sundays, but the minimum wage employees don't know the products, customer names, or industry in which they are selling.
Third, “we can’t have alcohol sales.” Respectfully the values of the conservative South must give way to allow beer and wine sales at local restaurants. The primary revenue stream for restaurants is drinks: soda and tea for $2.00, beer and wine for as much as $5.00 a glass. Without this joyful elixir food choices are not gourmet, but relegated to diner-style, low-end choices forcing consumers to look for other options. My preference would be the locally-owned unique establishment with an atmosphere conducive for business or a romantic evening. These establishments spawn the growth of nearby merchants because there is now a reason to be downtown.
Our own town of Cleveland, Georgia is facing tough decisions, but it appears the local political establishment has opened themselves to public opinion. Next time you travel I encourage you to avoid the highway and take a trip through the nearby small towns. Avoid the bypass; choose the “business” route. Don’t eat at a national chain, but find a local restaurant. If you need something, stop at a local merchant, not a national box store. The recipe for success is not difficult, but sadly undoing the prior destruction, or motions set in place, is nearly impossible.
Sunday, April 17, 2011
My two cents...
The fed is between a rock and a hard place:
- no more QE: the stock market will crash, no easy credit, brakes on economy
- continue QE: rising inflation, real wages dropping, angry voters.
Furthermore the Administration is not supposed to be part of the monetary policy but Obama will politically pay for the decision either way.
What should we do:
- keep your gas tanks full (I filled the RV in January, $2.90/gallon, today driving home it is $3.80/gallon -- $60 savings
- keep your pantry full -- anything you buy today is cheaper than tomorrow
- understand the stock market is like going to Vegas. Best trading option is probably futures contracts
- pay down debt that costs more than 6%-8% to improve cash flow. Anything else is about to become cheap money. Free up the expensive money to invest in CD's, dividend paying accounts when interest rates go back to 10-12-14%
- Remember, as interest rates go up bond prices go down. why do you think PIMCO sold ALL of their treasury bonds?
- Remember the government has $4 trillion in short-term treasuries coming due in the next 18 months
- no more QE: the stock market will crash, no easy credit, brakes on economy
- continue QE: rising inflation, real wages dropping, angry voters.
Furthermore the Administration is not supposed to be part of the monetary policy but Obama will politically pay for the decision either way.
What should we do:
- keep your gas tanks full (I filled the RV in January, $2.90/gallon, today driving home it is $3.80/gallon -- $60 savings
- keep your pantry full -- anything you buy today is cheaper than tomorrow
- understand the stock market is like going to Vegas. Best trading option is probably futures contracts
- pay down debt that costs more than 6%-8% to improve cash flow. Anything else is about to become cheap money. Free up the expensive money to invest in CD's, dividend paying accounts when interest rates go back to 10-12-14%
- Remember, as interest rates go up bond prices go down. why do you think PIMCO sold ALL of their treasury bonds?
- Remember the government has $4 trillion in short-term treasuries coming due in the next 18 months
The Hydra Monster
The Hydra Monster (4/13/2011)
On Friday Americans will repeat the annual ritual of paying taxes. Local television stations will provide live coverage from postal offices near closing time; editorializing what we “must” do to pay our taxes. Obediently most all of her citizens will have complied and the monster of government will continue living, and regardless of attack she cannot be killed through starvation or even radical cuts. Valiantly some men are trying like Congressmen Ron Paul and Paul Ryan, but attempts to shut down the government and truly kill the monster to save future generations are met with mockery from the press and she continues to live.
Sadly, the Hydra Monster lives at all levels of our lives. We start with our paychecks by enslaving ourselves for the first three to four months of the year to pay Federal income tax (20%) and FICA (7.65%). Sadly, most people ignore the 7.65% raise they would receive if employers did not have to pay taxes “on their behalf.” In Georgia I have a state tax of approximately 3% and there are the other taxes my employer pays instead of paying me: SUTA and FUTA. Adding it all together nearly 40% of our paycheck is gone. In November most local municipalities seek property taxes on those who own real estate, amounts of $5-$15k are averages in Volusia County (let’s assume 10% of income). With every purchase comes sales tax: 6.5%. Adding everything together comes to 55% of earnings. Of course, there are countless fees and taxes on phones, internet, licenses, and registrations further driving up costs.
Taxes anger me because the Hydra Monster called government relentlessly feeds itself on the backs of all men and abusively spends the collected monies. At the national level the monster is so large the President readily acknowledged during his promotion of healthcare fraud and waste in Medicare comes to $1 billion, but the monster lives on. Locally governments build multi-million dollar firehouses on prime commercial property and create pension plans to allow productive citizens to withdraw from the workforce at early ages. In Nassau County, NY policeman earn $100k after five years and are entitled to hundreds of thousands in annual retirement benefits!
Our country is dying, consumed by the Hydra Monster. No matter how hard our heroes try to cut a head she will live on, breathing fire against her people, growing meaninglessly, and adding more heads to become ever more pervasive and invasive in our lives. Radical change is required to defeat the Hydra Monster, only banded together can she be killed. Paying taxes this week is a sad offering to the misery befalls man but will make the Monster stronger.
On Friday Americans will repeat the annual ritual of paying taxes. Local television stations will provide live coverage from postal offices near closing time; editorializing what we “must” do to pay our taxes. Obediently most all of her citizens will have complied and the monster of government will continue living, and regardless of attack she cannot be killed through starvation or even radical cuts. Valiantly some men are trying like Congressmen Ron Paul and Paul Ryan, but attempts to shut down the government and truly kill the monster to save future generations are met with mockery from the press and she continues to live.
Sadly, the Hydra Monster lives at all levels of our lives. We start with our paychecks by enslaving ourselves for the first three to four months of the year to pay Federal income tax (20%) and FICA (7.65%). Sadly, most people ignore the 7.65% raise they would receive if employers did not have to pay taxes “on their behalf.” In Georgia I have a state tax of approximately 3% and there are the other taxes my employer pays instead of paying me: SUTA and FUTA. Adding it all together nearly 40% of our paycheck is gone. In November most local municipalities seek property taxes on those who own real estate, amounts of $5-$15k are averages in Volusia County (let’s assume 10% of income). With every purchase comes sales tax: 6.5%. Adding everything together comes to 55% of earnings. Of course, there are countless fees and taxes on phones, internet, licenses, and registrations further driving up costs.
Taxes anger me because the Hydra Monster called government relentlessly feeds itself on the backs of all men and abusively spends the collected monies. At the national level the monster is so large the President readily acknowledged during his promotion of healthcare fraud and waste in Medicare comes to $1 billion, but the monster lives on. Locally governments build multi-million dollar firehouses on prime commercial property and create pension plans to allow productive citizens to withdraw from the workforce at early ages. In Nassau County, NY policeman earn $100k after five years and are entitled to hundreds of thousands in annual retirement benefits!
Our country is dying, consumed by the Hydra Monster. No matter how hard our heroes try to cut a head she will live on, breathing fire against her people, growing meaninglessly, and adding more heads to become ever more pervasive and invasive in our lives. Radical change is required to defeat the Hydra Monster, only banded together can she be killed. Paying taxes this week is a sad offering to the misery befalls man but will make the Monster stronger.
Friday, March 04, 2011
Destroying Futures
Imagine earning $30,000 (3 Trillion) per year but having bills and obligations of $42,000 (4.2 Trillion) per year. Additionally, let’s assume you have a spouse and two children with wants and desires. With your income falling short you would know radical changes in your lifestyle must be made and if you are a Dave Ramsey fan you know every expenditure would have to be considered and nearly one-fourth must be cut. However, the kids will complain if you cut their movies, food, school activities, clothes and even iTunes budget (government spending). Your spouse does not want to discuss the issue because she feels the problem will go away, as if by magic, and there is no reason to upset the kids (political debate).
However, there is an answer: debt. Of course, a loan to create a source of “income” can be created (deficit spending). For instance, a second mortgage on your home could fund the shortfall and maybe allow you to buy a new big-screen television or car, a hugely popular decision at home. But this only works for a while, quickly you discover the interest only payments add another $500 per month to your obligations, thus you are now using the debt taken on to pay for the original shortfall and the new debt (treasury auctions)! You have looked for ways to increase income, but the economy isn’t growing and no one is hiring (tax revenue). Your anxiety increases because you know this cannot keep going and bankruptcy may be the only way out.
One day however, your neighbor Fred (Federal Reserve) knocks on your door and explains his multi-level marketing business is doing well and as long as he keeps getting new people involved his success will grow and he would like to help you. Hesitantly you agree to his proposal: he will paper over your debt (purchase bonds), and you can repay him in 30-years. Thoughtfully you think his proposed near zero interest rate and 30-year offer has to work. At age 50 it is even unlikely you will be here in 30 years to deal with the repercussions. With a wink, Fred explains your children will assume the entire debt, with interest. After contemplation you feel it is better to risk your children’s future than to reign in your lifestyle today, and hurt their feelings, and since they do not get an opinion (can’t vote) they will never know. Like a deal with the devil, you know there is no way out.
However, there is an answer: debt. Of course, a loan to create a source of “income” can be created (deficit spending). For instance, a second mortgage on your home could fund the shortfall and maybe allow you to buy a new big-screen television or car, a hugely popular decision at home. But this only works for a while, quickly you discover the interest only payments add another $500 per month to your obligations, thus you are now using the debt taken on to pay for the original shortfall and the new debt (treasury auctions)! You have looked for ways to increase income, but the economy isn’t growing and no one is hiring (tax revenue). Your anxiety increases because you know this cannot keep going and bankruptcy may be the only way out.
One day however, your neighbor Fred (Federal Reserve) knocks on your door and explains his multi-level marketing business is doing well and as long as he keeps getting new people involved his success will grow and he would like to help you. Hesitantly you agree to his proposal: he will paper over your debt (purchase bonds), and you can repay him in 30-years. Thoughtfully you think his proposed near zero interest rate and 30-year offer has to work. At age 50 it is even unlikely you will be here in 30 years to deal with the repercussions. With a wink, Fred explains your children will assume the entire debt, with interest. After contemplation you feel it is better to risk your children’s future than to reign in your lifestyle today, and hurt their feelings, and since they do not get an opinion (can’t vote) they will never know. Like a deal with the devil, you know there is no way out.
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