One of the participants in the discussion is, Dr John Waits, who with his colleagues and staff at Centreville Clinic Staff, are doing their best to help their community afford their healthcare.
Dr Waits struggles valiantly in the discussion to avoid using the terms profit and subsidy. This is a mistake in my opinion, while you can talk about healthcare efficiencies, people need to hear that large hospital groups are for profit, yes even the not-for-profit ones. People need to understand that rural hospitals are not affordable without subsidy. Equally, urban communities need to understand that without rural communities, we have an entirely different set of problems.
Subsidy isn’t a bad word, nor is tax that ultimately is used to pay for it. You can either levy tax at a state level or at the federal level, preferably on big hospital groups and medical providers revenue(not profit). You can then use that tax money to subsidise rural healthcare. Or you can use general federal taxation, and use the additional money to fund a medicaid hospitals in rural community cities.
Struggling along with no real honesty, and without confronting the elephant in the room, will just mean more rural hospitals closing, leading the to further decline of rural communities and the increased pressure on cities.
This is a big deal, companies that buyback their stock, are reducing the number of shares available on the market. That generally means the share price goes up. Share prices are often one of the main ways executives are measured, their bonuses are usually dependant on the share price. Also, because the price of each share goes up, it makes it harder for lower and middle class people to get in on the action.
buying your own shares is like eating your own young, a glorified share manipulation gamble
The other reason share buybacks are import to watch, is they effectively use the companies cash to “eat themselves”. That cash is then no longer available for Capital investment, new building, equipment and other necessary expansion expenditure. Citigroup reports that companies buying back their own stock, spent more money doing that, than at any time since 2008.
Home Depot announced a $15-billion buyback in February, as a way to artificially hedge their share price, after they announced they’d miss expectation on revenue. Cynical share price manipulation. I have no idea if they used repatriated tax money, but if they miss earnings again this year, the share price will drop. Of course the executives and board will be ok, they’ll have sold their shares at the newly inflated share price, which is down on it’s 2018 high(212.39), but not nearly as low as it would have been if they’d not bought their own shares.
Next time a big business closes an office near you, and jobs are lost, don’t take their reason at face value. When did they last do a stock buyback, and how much cash was repatriated under the Trump/GOP tax break for 2018?
When we ride our bikes north and east of Boulder you can see the gas and oil pipelines an extraction points at regular intervals. But it’s nothing like Texas. Very, Very few oil derricks, certainly in and around Erie, CO there are a number of fracking pad sites, you can see them clearly from Colorado State Highway 52, in places.
But there is nothing like the density I expected given the prominence of the Oil and Gas industry in the state politics. Even when you drive out through north east Colorado, wells yes, but still surrounded by massive areas of open farmland.
So when you see TV ads and claims like this, you have to wonder.
“extreme out-of-state groups” > “thousands of jobs” > “devastate Colorado’s economy for years to come” – All pretty extreme. I wondered.
But I wonder no more. As always the great folks over at CPR News covered this is much detail, there are lots of in-depth articles on their website. I found the Colorado Wonders segment on the radio by Energy and Environment reporter Grace Hood and presented with Journalist and Presenter Ryan Warner.
You can hear them discuss it in full here. It’s the first 12-minutes or so. To save time, and as a form of notepad, here are my notes.
Protect Colorado is outspending Colorado Rising by 32-1.
Depending on how you look at the land affected it could put 85% off limits if Prop.112 passes, or it could put only 54% off limits due to increased setbacks.
The 85% number comes from looking at surface land available for well pads. Except, as anyone who has watched the fracking industry for the last 10-years knows. Drillers can now drill underground and then go horizontal for upto 3-miles. Yep, so your fracking site can be setback 2500 feet from schools, hospitals etc. but they can still drill upto 3-miles underground. Stunning.
So thats who is involved and some numbers to get you started More interesting though are the claims for the impact on the Colorado economy. Here again Grace and Ryan have you covered.
Oil and Gas Industry Impact in Colorado Overall
2014, the peak of the oil and gas boom, Oil and Gas accounted for only 7% of Colorado’s Gross Domestic Product (GDP).
2016, a low for oil and gas, Oil and Gas contributed just 3% of GDP.
2018 looks to be about 5% of GDP, and is the average over 10-years.
This sort of contribution doesn’t even put the Oil and Gas Industries in the top-10 list in Colorado. So much for the devastating impact.
But I hear you say. Oil and Gas contributes so much more. What about taxes?
Severance taxes(what Oil and Gas pays) from 2012-2017 were between $4-million and $265-million. Sounds a lot, but is less than 1% of the State budget.
Compared to other States, like Alaska, where the severance taxes make up more than 50% of the State budget.
Why the variation and swing in both GDP and Taxes from Oil and Gas? Because it’s all dependant on the price of crude oil and gas. While the oil price has been slowly rising, it’s nowhere near the 2013 peak.
Grace Hood makes the point in her answers that the numbers don’t include oil and gas service workers and service industries. One of which would be the truck drivers who truck water out to fracking sites. Then there are the people directly employed by the Oil and Gas Industry, that must be big?
Employment State-wide is circa 29,000 or just 1% of the workforce in Colorado.
The last note I took while listening to the CPR News item was the biggest impact would be felt in Weld County. You can take the link to find out a bit more about Weld County, but here are some notes I looked up from Wikipedia.
Weld County has an estimated population as of 2017 of 305,000.
Weld County is the richest agricultural county in the United States east of the Rocky Mountains, and the fourth richest overall nationally.
For a relatively rich county, the median family income is just $49,569. So the money is going where?
There are just 76 people per square mile in Weld County, compared to some 450 people per square mile in Boulder County and even more dense in urban areas and cities.
So while it’s easy to see that Weld County, if as populace as Boulder County, would suffer real financial hardship, given the population density and size of Weld County, it’s hard to image that the setbacks will be a real inhibitor there. Unless of course they are all out of sites and places to drill already.
It’s easy to come to the conclusion that you should VOTE YES on Prop.112. I can’t vote as a non-citizen. The TV Commercials by “Protect Colorado” are pure unadulterated fear mongering. Sure, families and workers will be impacted if 112 pases, but hey, they’ll be impacted if the oil prices head south again. The boom and bust of the Oil Industry has been going on for decades, the setbacks won’t change that.
Protect Colorado doesn’t have a leg to stand-on with their extreme claims. I know most people who live near me would be horrified to find that a well pad 2-3 miles away was drilling underneath them. The setbacks are well deserved for safety in urban and more populous areas than Weld County and the like.
A year ago a bale of waste paper was worth $100 a ton, today you have to pay $15 per ton to get it taken away.
That’s not free to you, the cost is hidden in your charges.
I’m in the midst of switching waste/trash haulers for our HOA. The HOA took a vote last year to switch at the end of the contract. As it turns out the city service for the identical cart service is more expensive than our HOA hauler.
This is a big deal, especially in the era of everything by Amazon and e-commerce.
That’s missing the point though. The city service is aimed at reducing landfill needs, and quite rightly so. They charge by size of trash and composting bins, and whatever size recycling is thrown in for free.
Our current HOA service is mostly just aimed at taking stuff away. We were able to require the existing hauler into doing year-around composting, although a number of people have claimed to have seen the hauler just dump the composting in with the trash. I talked to the City Public Works Director about their service, only to find out that it ends in August next year, and right about the time we move HOA Residents to the city service, they’ll be issuing a RFP for a new 5-year contract.
It’s likely then we are going to be caught between a rock and a hard place. If we stick with the existing hauler, we’ll likely get charged more for a less than optimal service. If we switch, we are likely to be in a bigger pool, which could make recycling even more expensive when the contract is renewed.
At least the communities I’ve lived in, in America, have been lazy recyclers. Back in the mid-80’s, recycling/reuse increasing came into people’s consciousness, it was all pretty specific, especially around glass, and can recycling. Many States instituted deposit schemes, and encouraged collection and recycling. For most though, the deposit schemes never lasted, people were too lazy after a few years, and just reverted to trashing them.
Single stream recycling was seen as a simple way to encourage Americans to recycle, it’s been hugely successful, and a disaster. Many Americans don’t even try to understand the recycling process, or even wonder how the materials they dump in their single stream recycling cart make it back into raw materials to be reused. If it’s paper or plastic, they just put it in the single stream cart/bin. Some people jam stuff in the Single stream cart, well, because it wont fit in the trash. It’s then someone elses problem.
Take for example that Amazon 100% recyclable plastic shipping envelopes, just like the one in the picture. These don’t go in single stream recycling. They have to be handled by speciality bag recyclers.
However, even if everyone does what we do and keep a large sack in the garage for plastic bags and take it to their specialist local collection point, in our case Eco-cycle in Boulder, it’s still not that simple.
Your amazon shipping bag has a paper address label stuck on it. Unless that label is completely removed, the bag is just another example of junk recycling. The only way to turn the bag back into recyclable plastic pellets, is to soak the bag, and then use a chemical mixture to dissolve the paper. At scale, ten of thousands per month, doesn’t make this practical. Picking the labels off is difficult and time consuming, better is just to take a pair of scissors and cut the label off and put it in the trash before putting the bag asides to take to specialist recycling. There are loads of other examples
We recently bought a new TV. Aside from a massive paperboard box, it came with a large amount of styrofoam packing material. Styrofoam needs specialist recycling, just because you can jam ito into your trash cart, don’t. It will get crushed and numerous stages and the styrofoam particles eventually end up in landfill and last 500+ years.
Don’t put it in recycling either. Just because you can jam it in, doesn’t mean it won’t end up in landfill, it will, only at twice the haulage cost. If you have a service that penalizes you for “bad materials” in recycling, you deserve to get ticketed. If your styrofoam makes it to the single stream recycling location, it will either be sorted by machine, or often by hand into the trash. That’s not free to you, the cost is hidden in your charges.
That’s not free to you, the cost is hidden in your charges.
The list goes on and on. Tires and inner tubes; shredded paper; food packing(if it has any kind of wax or plastic liner), broken drinking glasses or lightbulbs; almost anything with plastic packing tape, even cardboard.. It all has to be either stripped, or should go in the trash.
All this has to be sorted, cleaned, and then sent to the actual plant where it is converted. The sorting is expensive and the less “pure” it is, the less it’s worth. Even bottle tops and can lids, carton tops should be trashed, they are not recyclable. In fact, pretty much anything under 3-inches can’t be recycled as it’s too small to pass through the machines.
The Market for recycling
A year ago a bale of waste paper was worth $100 a ton, today you have to pay $15 per ton to get it taken away.
Interestingly, amid the recycling crisis, the same thing that has happened in other industries is also happening to US paper mills, they are getting bought by Chinese companies. It’s not clear what this will mean for recycling, but it will increasingly mean the Chinese are able to control the price.
What Can we do?
Be a conscientious recycler. If in doubt, throw it in the trash. Compost where you can, recycle diligently. Remember everything you put in recycling that ends up in trash costs twice as much to haul and still ends up in landfills. Even where landfills do NOT pollute the ground, or ground water, they do smell. Many things that end up in landfill will last hundreds of years.
Buying land for landfills; preparing them; managing them is an expensive business. Most people wouldn’t want to live near a landfill for just the noise of trucks coming and going, much less the smell. Yet we can’t live without landfills, the further away from our homes they are, the more it costs to haul trash there. The alternative would be incinerators, and while the science is good, the fear of air pollution is real. At least for now, landfill is the only alternative to recycling.
One of the best videos I’ve seen on single stream recycling comes from our own Boulder County Recycling Center. It should be compulsory viewing for everyone. While watching, remember, our taxes are paying for the locations, machines, energy, and people who make it “simple” for you to do recycling, via single stream recycling. Even after all this, we are now having to pay for many of the resource bundles to be taken away for re-use.
The second video covers hard to recycle and problem materials with answer son what to do with them.
n 2017, the real median household income in the U.S. was $61,372, which is roughly what two earners with full-time jobs making $15 an hour would make.
I remain totally confused about class as a term to classify people in America. This article is a prime example. While overall this is good news, if $15-per hour helps the middle class, how little do you have to earn to be working class? And why is that term never used?
As far as I’m aware the amazon deal doesn’t include health insurance, which effectively means before taxes, you’ll have to work for nearly 1-week in 4 just to pay for an individual plan, for a family plan, you’ll be working for just over two weeks every month just to pay your health insurance premiums. Then there’s food, rent, transportation etc. and so who knows where you are going to find the average $4,533 deductibles if you do get sick. Rather than working class, you are the working poor.
If two people have to work for a couple to survive they are working class. Telling them they are “Middle class” if they earn more than $22 is just a great example of gaslighting. To be middle class, surely it means when one of you can chose not to work.
Back in July, @_anthonyhahn wrote an article which appeared in both the Daily Camera and the Colorado Hometown Weekly about a potential new Kohl’s store in Lafayette CO, and what that meant for the Louisville CO store.
While pitting the two adjacent cities against each other in a battle for sales tax is valid, it totally misses the point about all the new development around the 287 Corridor, north of Lafayette.
At the time, I wrote a letter to the editor of the Colorado Hometown Weekly and sent it in. I just got to checking, and as far as I can see, it never made publication for either space, or editorial reasons. As always, waste not, want not, here it is. Comments?
Re: July 11th Anthony Hahn Kohls move to Lafayette
I’m a Louisville resident, but this isn’t Louisville versus Lafayette, it’s the past vs the future.
How much longer can we continue sleep walking into the future with car oriented development?
The city of Lafayette believes a new Kohl’s on 287 is worth, and will pay off its $2-million subsidy in 2-3 years. Add to that the limited benefit of some extra jobs, and extra sales tax receipts during construction. It still means the Residents will have to shop hard, and drive regularly to make another out of town store pay off.
Louisville development director Dejong says the McCaslin corridor tax receipts are up year on year to $420,000, but that’s from a whole lot of small stores and restaurants that are almost always busier than any of the big box stores. Kohls will need to do much more than it does with it’s Louisville store to make it work. The current store in Louisville often looks like it’s been ransacked by people on a scavenger hunt, and the parking lot is frequently less than 1/4 full.
Kohl’s itself we likely be shielded from a failure, tax write-offs against losses, writing off development and moving expenses. The development company, Hix Snedeker can do the same. It’s not the McCaslin corridor thats in economic crisis, it the whole sector.
It’s always easier to build new development, urban sprawl has funded and driven America for the last 80-years. The real question is, what does this contribute to the community? More driving, more concrete, more parking spaces? The 287 location certainly seems more attractive than the current Louisville location, it has more passing traffic in a superficial way. The question is how many will stop, rather than shop online and have it delivered at home?
Lafayette residents should ask, is this worth the money, the tax breaks, etc. ? What type of development do they want, and is this the right type of development rather than just easy development?
As the GOP push through their tax bill, without any transparency, one of the big ticket items is corporate tax breaks.
My opinion is the government are really wasting their time, and our money giving tax breaks, especially to companies to repatriate their overseas earnings, in some kind of swap for jobs. No such thing will happen, sure there will be a few winners here and there, but nothing substantial and certainly nothing overtime.
If the government wanted to do this, they’d have been better creating an incentive program, which gave them tax deductions for each net new job they created, the longer their total employment numbers were up, net new, the lower the tax rate on repatriation would go.
I posted the following on twitter… but in a debate about it today, realized I’d left the link off for the NPR article. Here it is.
Full transparency, I really benefitted from share options during the last tax holiday for corps. Bringing money back.Over 10-year period ibm lost 100,000 US jobs. Anyone thinks it will be different this time, isnt thinking at all. #GOPTaxScam#GOPTaxPlanhttps://t.co/IH4qxvIH1M
And it wasn’t just ibm… And it won’t be this time. Most of the companies effected already have billions of dollars in the USA and could create jobs now. Share options are not evil, they do act as a great motivator, I know. However, 90% of the value goes to the top 1%
NPR reached out to seven tech giants – Apple, Alphabet, Microsoft, Facebook, Intel, Oracle, Cisco – to ask, would they use repatriated money to create jobs in the U.S.? Not a single one would make a commitment on the record
And I know I played a big part in that, encouraging, promoting, cajoling and educating senior management and execs that there was a tidal wave of tech coming from India and China, and if they were not on it, they’d be drowned by it…
But that still doesn’t make it right to cut tax that is needed to supports schools medical and welfare, infrastructure and more, when there is already enough money slushing around. #GOPTaxScam#GOPTaxPlan
One mans crusade to limit Government, what he wanted, how he did it, and what happened. At least Bruce was principled. A great listen, especially on the consequences for the State and Bruce(The Pariah?)
I’ve been frustrated that my blog has been withering but I just didn’t want to be an endless stream of rants about the #potus45 administration.
So this isn’t about them, at all. While I have in mind a summery I’ll steer clear for now. So, meanwhile back in beautiful Colorado, the natives are getting worked up over a plan to install “quiet zones” for all the railroad crossings in town.
As much as I can’t envisage enjoying the horn blowing, and we can barely hear them in the night, apparently many can and do like them and have a nostalgia for them.
Well the whole thing went awry went Rene posted, she said.
If you don’t like the trains, don’t live near the tracks. No body would build within spitting distance of a rail road track if nobody would live there, then no body would be bothered by the noise. All the high density housing along the tracks is ruining my wonderful, small home town. I resent that people come in and then start to try to change it.
Which of course completely misses the point that most of old Town was built around the railroad out of economic necessity, which made people want to live there, rather than people who loved the sound of the horns and built a house there.
Rene, change is not only inevitable but essential.
For the most part the city carries most of its infrastructure on its book as assets, which means they depreciate it over its lifespan, and they have scramble to find ways to replace it.
In essence the only way they have to do that is to raise property and sales tax, or get new residents who make up the difference. Bonds are indirectly taxes.
If there is some road, building or other city or state asset you’ve been using since you arrived here, that hasn’t been rebuilt or replaced, then you have been subsidized by either earlier generations or the new residents. This is especially true for water, sewage, and roads.
As has been previously articulated here, essentially the quiet zones are really doing no more than returning the crossings to pre-2005 safety and horns for post 2015 traffic volumes.
It’s not the new residents that are to blame, I’m one of them. If anyone is to blame its the people that have lived here for 25+ years.
They’ve not been accounting for city resources as liabilities, not taxing enough to support those liabilities, and then selling property off to developers to make a buck for themselves.
Unfortunately development in America, not just Louisville has been a ponzy scheme for 100 years. You either keep growing or you’ll wither and die, or become Boulder. Louisville is headed for the latter since it’s mostly built out.
We hear a lot about the “takers” in America, a classification for, usually inner-city people who survive on benefits, unemployment, housing, medical, food stamps and more. Mostly the venom about takers also contains a racial element, it’s directed at black and minority groups who many assume benefit from Government programs without paying in.
What we don’t hear much about is the affordability of rural towns, and even many of the suburbs. One of America’s greatest strengths, it’s size, is also one of it’s biggest problems, small town sustainability. I’m no expert on the economy and sustainability, but if you drive long distance in America away from the Interstates, you can see the problem everywhere. Decaying towns, decaying infrastructure, slowing or declining population growth. I own and subsidize a rental home in one such town in Texas.
Back in 2014, I made my only drive from Austin TX to Boulder CO with my Mum, on what was to be her last grand tour. What struck me at the time were the endless poor quality roads, and the nearly, seemingly deserted small towns.
We covered 2,500 miles, mostly north west Texas, also New Mexico, and Colorado. On the way back we went via Taos, Santa Fe, and Roswell and then back through west Texas.
They had almost no choice in terms of food, restaurants and shops. I wrote this blog post “Decaying Texas”. It has a couple of slideshows of pictures taken along the way home.
The question of affordability will be right in the headlights in the coming years of the Trump administration. Almost every major program that the administration seems to want to change or cut will have a major impact on these rural societies. Downsizing the Federal government, a project of the Cato Institute, says:
Even if rural subsidy programs were administered efficiently, they represent an unfair redistribution of wealth. In many ways, rural Americans are better off than urban and suburban Americans. They enjoy cheaper housing, cleaner air, less congestion, and other advantages. So people who live in rural areas should not be a privileged class receiving special subsidies.
The Cato Institute couches the benefits in the usual political-speak weasel words as “Scholars at Cato believe that cutting the federal budget would enhance personal freedom, increase prosperity, and leave a positive fiscal legacy to the next generation.”
Rural communities for the most part exist to allow the exploitation of the land and resources. Hence the reason why America’s size is a strength, there is plenty to exploit. From farming for cattle, corn, wheat, to mineral extraction, to oil and gas fracking, America has it in abundance.
However, most of the infrastructure to support the communities is decades or more old and needs investment to sustain. Building roads, laying pipelines for water, sewage, telephone and internet service are expensive per capita. Roads particularly require a massive subsidy given the distances involved and the low number of people they service.
What is clear is that the new administration wants to cut regulations, budgets, and “Make America Great Again” #MAGA. I fear though for these communities, as they are likely to become unintended consequences of poorly thought through, and rushed changes in policy.
School choice has been a great boon for suburban America. It has also been a positive benefit for the re-segregation of schools. Rich, often white people move from urban centers to suburban centers where they not only have choice, but can have their choice subsidized through vouchers, funded at the expense of public schools whose budgets are impacted by funding vouchers. Forget the furor about DeVos and if she is even qualified as U.S. secretary of Education. What is clear is that if she chooses to drive her professed support for school choice through vouchers as a policy, rural education will be screwed. Rural areas, without huge subsidy, will not have choice. Private businesses are not going to rush into towns and build new alternative charter schools, they can never make money from them.
If the alternative is distance learning, it has a double impact. 1. Distance or e-learning has typically less than optimal results, 2, by opting for choice through voucher, the local public schools are further devalued by lower attendance and either great subsidy, or lower budgets. This is a major issue, as schools in rural areas don’t just teach children, they are major social hubs for community interaction. Destroying public schools in rural areas, will further destroy their communities. The Atlantic has a great article covering DeVos and the potential impact on rural schools and communities.
Health care (ACA and replacement)
This blog post was kicked off while driving to swimming this morning. I heard this Colorado Public Radio (CPR) piece on the rural hospitals fears for post “Obamacare”. Like schools, access to medical facilities in rural America is crucial to their survival(literally). Asides from concerns of access to healthcare and the affordability of it, the thing that struck me about the CPR interview was that San Luis Valley Health in Alamosa provides 670 jobs and is the region’s largest employer. This is consistent with what I’ve observed elsewhere in Colorado and Texas, both large and small towns with massive health care employment.
In the UK, where the National Health Service (NHS) employees around 1.6-million people, making it the world’s 5th largest employer. The NHS is notionally is single organization, the NHS employs just under 2.5% of the UK population. Using the US Bureuau of Labor Statistics data for 2009, health care employment in private-sector health care industry employees just shy of 11-million people, add to that 100,000 of the 350,000 at the Veterans Administration, and then all the small town public health care clinics that deal with vaccinations etc. and it’s safe to say some 12-million work in health care in the USA. So, nearly 3.75% of the American population work in healthcare.
Health care in the US is much more expensive than the UK and most other developed countries in the world. This is in part due to the massive over provision and duplication of healthcare facilities. The simplest way to reduce the cost of Government programs, would be to drastically cut the provisions that support poor, rural communities. Make them travel further, pay hospitals less for the procedures, make fewer people qualify for the programs. That is exactly what these rural and small regional hospitals are concerned about, as discussed in the earlier referenced CPR piece.
While the President talks up his infrastructure goals, and decries the state of the roads, bridges and airports, outside of the wall, it’s not clear the Administration understands how much we currently spend and how poorly we budget and account for infrastructure. It’s already clear that Drivers are not paying their fair share, and that we are swimming in debt for road expansion and funding. It is hard to imagine that fiscal conservatives, the GOP and the TEA party are going to swallow more debt on a massive scale to fund this. In many rural areas, pot holed roads are being downgraded already to gravel roads also known as “unpaving“. States, cities and municipalities account for infrastructure in entirely the wrong way. They assume infrastructure itself has no value in their financial statements. They depreciate the assets over the course of its useful life until it has a no value. The problem is at that point, you can’t simply walk away.
As Strong Towns pointed out “Current accounting practices do not bear any relation to the future cash flow or the actual financial health of the city. When cities take on obligations, they should be properly accounted for as liabilities, not assets.” Given Rural towns tax base, population and business are declining, they are hit even more substantially by the errors in accounting from the past.
There is significant investment by way of investment and development grants in rural areas, as well through crop subsidies. The top subsidized commodities are Feed grains, mostly corn, cotton, wheat, rice, soybeans, and dairy. Many of these would be uneconomical if the mega-corporations and farming cooperatives went unsubsidized. America currently pays around $20 billion per year to farmers in direct subsidies as “farm income stabilization” via farm bills. These bills pre-date the economic turmoil of the Great Depression with the 1922 Grain Futures Act, the 1929 Agricultural Marketing Act, and the 1933 Agricultural Adjustment Act creating a tradition of government support.(Source: Wikipedia).
USDA goes way beyond that, it runs three other major programs through these agencies: Rural Housing Service, the Rural Utilities Service, and the Rural Business-Cooperative Service. They spent $6.5 billion in 2016 alone. USDA has about 100,000 employees, and is represented in most counties, in every state in America. It’s responsibilities include USDA oversees school lunches, meat inspection, food stamps, the Forest Service, rural electrification and much more. It’s total budget is some $140 billion in programs. The late pick of Georgia Governor Sunny Perdue concerned many in the rural community, some of his actions as Governor raise more questions, especially on his brand of rural endorsement. As governor, Perdue was caught in a more than a few scandals involving his businesses and personal property deals. He is also the first from a southern state, where rural and agriculture challenges are very different from the mid-west.
For many people HUD stands for the “U” in Housing and Urban Development, they mostly focus on urbans areas, nothing could be further from the truth. HUD operates many rural programs, in many cases funds pass through state agencies or other entities to rural communities. As well as development and assistance grants, HUD invests around $6.2 billion per year to provide affordable housing to low-income residents. Much of this through guaranteed low interest mortgages. How these programs will fare under Ben Carson is unknown. But without clear differentiation between urban and rural communities, many in the GOP and Administration will be going after cutting back HUD in general. HUD is also a major contributor to disaster assistance and provides many grants, relocation programmes and more.
In an era when the GOP have spent forever convincing everyone that TAX=BAD, and portraying city folk as moochers and takers, can we really afford rural communities anymore? It’s very likely that these rural communities will experience the bulk of the pain from the Administration policy changes. Not through a single policy change, or executive order, but but through death by a thousand cuts.
If that happens, there will be no one but the current Administration and the Republican party to blame.