Inflation is crushing rural America (user search)
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  Inflation is crushing rural America (search mode)
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Author Topic: Inflation is crushing rural America  (Read 2144 times)
Benjamin Frank
Frank
Junior Chimp
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Posts: 7,066


« on: July 25, 2022, 08:20:29 PM »

Yes, I can say that inflation has had a devastating impact on rural Virginia. It's economy just was not able to handle the shock.

A lot of Democrats do dismiss inflation, because it is not as large of a shock to them due to the areas they live in.


There are differences of opinion as to the causes of inflation among democrats, and there are differences as to the impact that inflation is causing the American economy at the macro level (is the U.S in a recession? technically probably not given the low unemployment rate.)

That is not the same as 'dismissing inflation.'
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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #1 on: July 25, 2022, 08:22:17 PM »

The gas prices are going down so it's not coincidence that since Dobbs Rs haven't had a single favorite poll and some users still think it's a MT Treasure Red tsunami

The latest Trafalgar Group survey has the Congressional Republicans up 48-40%
I tend to dismiss summer polls though, personally.

Same as when the Canadian Liberals had a solid lead in the polls last summer.
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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #2 on: July 25, 2022, 08:53:46 PM »

This migration towards cities is hardly surprising. There's a reason why huge quarters of Spain and France lay empty, and most of the population is concentrated in towns. The marginal cost to support an additional town-dweller is minimal, because most of the infrastructure needed to support them is already built and paid for.

The American workforce, by and large, is not one concentrated in agriculture or manufacturing, but in services. A huge rural population in an environment where most commercial agriculture operations can be done by only a few workers with advanced machinery actually imposes huge opportunity costs.

On the first part, I know at least one city councilor who disagrees with you.

I can't find any quote, but local city councilor Harold Steves has argued that the incremental cost of population growth is greater than the increase to the tax base.

I don't know if he's correct, but an increase in city population can mean having to build new schools, upgrade the water and sewage, add new streets and upgrade them more frequently...

If anything, I think this argues that if population is going to increase in a city, then it should be done with as great a density as can be handled and not some kind of urban sprawl. Greater density can actually decrease traffic and probably does not require as high other incremental costs.
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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #3 on: July 27, 2022, 05:22:05 AM »

This migration towards cities is hardly surprising. There's a reason why huge quarters of Spain and France lay empty, and most of the population is concentrated in towns. The marginal cost to support an additional town-dweller is minimal, because most of the infrastructure needed to support them is already built and paid for.

The American workforce, by and large, is not one concentrated in agriculture or manufacturing, but in services. A huge rural population in an environment where most commercial agriculture operations can be done by only a few workers with advanced machinery actually imposes huge opportunity costs.

On the first part, I know at least one city councilor who disagrees with you.

I can't find any quote, but local city councilor Harold Steves has argued that the incremental cost of population growth is greater than the increase to the tax base.

I don't know if he's correct, but an increase in city population can mean having to build new schools, upgrade the water and sewage, add new streets and upgrade them more frequently...

If anything, I think this argues that if population is going to increase in a city, then it should be done with as great a density as can be handled and not some kind of urban sprawl. Greater density can actually decrease traffic and probably does not require as high other incremental costs.

Seems to me that "density" is an anathema to the rural dweller.


I'm sure that is true, but the comment was about urban areas and not rural areas.

Purely coincidental, here is a second politician who made the same type of comment just yesterday. Andrea Horwath, the outgoing leader of the Ontario NDP who was a Hamilton City Councilor from 1997-2004 and is now running for mayor of Hamilton.

"Development doesn't pay for itself and we also know we have a significant infrastructure deficit in our city and the more you expand ... you're just adding more and more to that infrastructure deficit," she said.

https://www.cbc.ca/news/canada/hamilton/horwath-mayor-hamilton-1.6530984

Again, I don't know if that's true or not, but certainly there are municipal politicians who believe that the costs of urban population growth outweigh the benefits from the increased tax base.
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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #4 on: July 27, 2022, 05:38:22 AM »
« Edited: July 27, 2022, 05:59:15 AM by Benjamin Frank »

Those same rural voters will deliver a GOP Congress that will immediately pass tax cuts for the rich. So why is there such a huge disconnect between what their reality is and and what their politcal action and advocacy is?

I wonder about this all the time. You put the question clearly.

Republicans frame the tax cuts as tax cuts for the small business owner, which is a classic republican constituency.

Why need a college education when you can start your own business and not depend on Government or an employer to make a living ?



Because it's not all about business. People matter just as much or more, than the business community. I believe the business sector should serve the people they get their money from, not just take the whole pie for themselves.

You misunderstand me.

In the rural republican mindset, small business owners are the people. They make up probably 50 percent of the town. The small shops. The realtor. The self
Employed electricians. Main Street. Skilled tradesmen.

In Marxist theory, people call them the petty bourgeoise.

Compare these people to say the democratic base. White collar workers. Tech workers. Professionals. They are more cosmopolitan.

OK. That's interesting. And who is the other 50%?

The rise of automation and off shoring in the late 1990s wiped out the least skilled of the “ petty “ bourgeoise aka the other 50 percent. Often times, in many small towns, you would only have one factory that becomes the main economic engine for the town, but once that factory  falls, everything else falls.

These people are highly resistant to change because it’s all they know. Their skilled job is all they know. The old economy IS the culture. It became the culture.

In many urban and suburban areas, the pressure from the public schools is so high because you’re being pushed to constantly update yourself, to
Constantly open your mind to meet the demands of the 21st century economy. Compare Austin Texas to Youngstown Ohio.

Two different economies. Two different cultures. One feeds the other.


Late 1990s?  Maybe the end of it.  

Bruce Springsteen, My Hometown. Recorded in 1983. To be sure, this was written during the recession of 1982-1983, but you can see the lyrics don't reference temporary issues.




From the lyrics:
Now Main Street's whitewashed windows and vacant stores
Seems like there ain't nobody wants to come down here no more
They're closing down the textile mill across the railroad tracks
Foreman says these jobs are going boys and they ain't coming back
To your hometown


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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #5 on: July 27, 2022, 05:45:01 AM »
« Edited: July 27, 2022, 05:59:52 AM by Benjamin Frank »

There is also the Billy Joel song "Allentown" released in 1982.



From the lyrics:
Well we're living here in Allentown
And they're closing all the factories down
Out in Bethlehem they're killing time
Filling out forms
Standing in line
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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #6 on: July 27, 2022, 06:04:29 AM »

Even Bob Dylan who rarely comments on contemporary situations released "Union Sundown" in 1983. The song is cryptic enough that I don't know if it's referring to labor unions or the United States, but the lryic is clear enough:




Well, you know, lots of people complaining that there is no work
I say, “Why you say that for
When nothing you got is U. S. made?”
They don’t make nothin’ here no more
You know, capitalism is above the law
It say, “It don’t count ’less it sells”
When it costs too much to build it at home
You just build it cheaper someplace else
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Benjamin Frank
Frank
Junior Chimp
*****
Posts: 7,066


« Reply #7 on: July 28, 2022, 07:32:45 AM »

It looks like they'll be a vote on taxing carried interest. Let's find out who the real supporters of the working class are and who the real supporters of the wealthy elite are.
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