The Wrongologist – Page 148 – Geopolitics, Power and Political Economy

Too Many Guns

The Daily Escape:

“Don’t tell me tomorrow isn’t the appropriate time to debate gun violence. If you’re a political leader doing nothing about this slaughter, you’re an accomplice.” – Sen. Chris Murphy (D-CT)

Can we get politicians to deal with gun violence? Politicians like to reframe the problem, like saying that we need more “good people” with guns. But, there were two armed police officers stationed at the Parkland FL school. Upon hearing that, the gun absolutists might argue: “If only the teachers and students had their own weapons, it probably would have worked out just fine…”

At Trump’s inaugural, in the “American Carnage” portion of his speech, he said that “Your child isn’t going to be shot” on his watch. But after 18 shootings just this year, it’s clear that Trump has no plan to stop gun violence. Attacks like this can’t be eliminated, but Trump could have done something, other than blame the students and neighbors who didn’t turn the shooter in. That, and last year, he made it easier for mentally ill people to buy guns.

And we are getting numb. The LA Times editorial asks: (emphasis by Wrongo)

When does an epidemic stop being an epidemic and become just a basic part of regular life? It’s been 19 years since the nation was horrified by the carnage at Columbine in suburban Denver. It’s been just over five years since the Sandy Hook Elementary School shooting. Quick: What was the most recent mass shooting incident (at least four wounded) at a school before the one on Wednesday? Here’s the sick part: There have been so many school shootings that it takes a bit of work to answer what should be an easy question.

Who remembers clearly the particulars of the last school shooting? Not Wrongo, and probably not you. We have grown weary of being outraged after so many shootings. We’ve become numb to the sensations of outrage and pain for the victims and their families. It’s official. Guns have more rights than humans in our 21^st Century America.

We have to control guns if we want to turn the tide. Consider this chart from the Tewkesbury Lab that graphs gun deaths by gun ownership:

There is a clear relationship between gun access and gun violence, and the US clearly has the most gun violence and the most guns. We might ask why some countries are above the trend line, and others are below it. When your country is above the line, your citizens not only own more guns per capita, they also have a harder time keeping their guns pointed away from other people.

Trump and Congress should have a goal of minimizing the risk of gun deaths. The best way to accomplish this is reducing access to guns. If you want to reduce your personal risk from gun related violence, you can move to a state or a country where gun laws are stricter and cultural norms surrounding guns are more progressive.

If you can’t or don’t want to move, you need to work to pass stricter gun laws where you live.

Politicians can argue about details, but the fundamentals are clear. It is like smoking. If you want to reduce smoking, you make it harder and more expensive to smoke. Only the tobacco industry and the politicians they had purchased really argued with that logic.

Why should it be different with guns?

We are unique in our worship of guns. The Second Amendment provides a big blanket of excuse for gun lovers to wrap themselves in, but Second Amendment rights shouldn’t be superior to the right of your kid to return home from school alive.

We need to control the number of guns. We need to make sure guns are being used for the right reason eg. hunting. My friend hunts and he told me about long range scopes reviewed, I can see why people enjoy shooting as a hobby but guns can also be very dangerous. Special care needs to be taken with guns. We also need to figure out how to change our acceptance and glorification of violence. It is young men like the kid who killed 17 in Parkland FL, who avoid mental health advice, because they don’t want to look weak. They are the same ones who are perpetually angry. They pick up a gun, and they let their gun do some punishing. And guns do that quickly and efficiently.

We have to stop them. Republicans are owned by the NRA. So first, we need to regain control of the House and Senate. We also need to have the gun control legislation ready for when that time comes.

We need better ad campaigns ads that spell out about what America loses with every shooting.

And until then, we need to protect our children with increased awareness and safety measures in schools, like every classroom having a bulletproof shield for example. We shouldn’t have to do this, but unfortunately, for now we do.

We can’t stop every wacko from harming people, but we can sharply reduce the percentage of wackos that have guns!

Rural Towns Have Polluted Water. Will Trump’s Plan Fix It?

The Daily Escape:

Valley of Desolation, Eastern Cape, South Africa – 2018 photo by Ottho Heldring

The Trump infrastructure plan asks states and cities to partner with private equity to build their roads, bridges and water treatment plants. As the WSJ explains, private equity says they are not interested. Apparently, they don’t want to build things; they prefer to purchase existing assets: (emphasis by Wrongo)

Fund managers say they are mainly looking for assets that are already privately owned—such as renewable energy, railroads, utilities and pipelines—and not the deteriorating government-owned infrastructure like roads and bridges that helped attract the capital in the first place. To the extent they are interested in public assets, the focus is more likely to be on privatizing existing infrastructure than on new development—the heart of Mr. Trump’s push.

One area where private equity may think they have a role to play is with America’s threatened water systems, which are existing assets. When people think of water crises, they think of places like Flint, Michigan, because a failed urban water system affects huge numbers of people. If you’re worried about the quality of your drinking water, take a look at https://waterfilterway.com/.

But most health-based violations of drinking-water standards occur in small towns. Of the 5,000 US drinking-water systems that racked up health-based violations in 2015, more than 50% were systems that served 500 people or fewer.

But when we add up the total number of people affected, rural America’s drinking-water situation is an order of magnitude greater than Flint’s. Millions of rural Americans are subject to unhealthy levels of contaminants in their drinking water, largely from agriculture and coal mining.

And as the rural/urban economic gap grows, this basic inequality won’t get fixed unless something radical is done to improve water quality in rural America.

Agriculture is the culprit in many rural towns, and unhealthy levels of nitrates is the primary cause. Nitrogen-based fertilizer runs off of farmlands and into the nation’s fresh water. The health impact of ingesting nitrates is serious:

Two-thirds of communities with nitrate levels at or above 5 ppm are in 10 states where agriculture is big business.
Almost three-fourths of communities whose drinking water is at or above the legal limit are found in just five states – Arizona, California, Kansas, Oklahoma and Texas.

Remediation costs vary, but a 2012 report from the Center for Watershed Sciences at UC Davis gives a yardstick. They say that a community of just under 5,000 people could incur annual costs ranging from $195,000 to $1.1 million to build and operate an ion exchange system, while a reverse osmosis system would cost from $1.1 million to $4 million a year. A $4 million system would cost $800 per citizen.

These costs may be far beyond the ability of small towns to finance. What is really going on here is another case of “socializing losses”. Farms are polluting the water, and the town is left to pay for remediation. And the big agriculture lobbies are making sure that their members avoid any liability for poisoning their towns.

We know that we haven’t been able to fund Flint’s water remediation with public funds. How will we deal with the rest of America’s polluted drinking water? It isn’t likely that towns and cities can do much more. Some cities have debt capacity, the capital markets may be willing to lend to them. However, hostility to new taxes on the local level means that issuing new debt is difficult politically for mayors and town councils.

Trump’s infrastructure plan opens up the Clean Water State Revolving Fund (CWSRF). This federal financial assistance program for water infrastructure projects would allow private firms to both manage and repair water infrastructure at taxpayer’s expense. Previously, only states and municipalities could access the fund.

Funneling CWSRF funds to private water system providers means our most vulnerable towns will have to turn over basic infrastructure to for-profit companies. And those companies will charge for the privilege. On average, private for-profit water utilities charge households 59% more than local governments charge for drinking water, an extra $185 a year.

When your water is poisoning you, should you agree to raise water rates to fix it, or do you expect to get pure water for the money you are already paying?

What if you are unable to move to a place where the water is safe?

If your water system will cost $ millions for a town of 500, how can it possibly be paid for, except by public funding?

Thinking About Trump’s Infrastructure Plan

The Daily Escape:

Lincoln Highway – photo by Andrew Smith. The Lincoln Highway was the first highway to connect the east and west coasts of the USA in 1916. It was a combination of newer and older roads of varying quality.

Eisenhower’s National Highway System had its origin in a road trip that he took across the country in 1919, 33 years before he was elected president. From Atlas Obscura:

Lt. Colonel Dwight D. Eisenhower traveled with the military in a motor convoy across the country, from DC to San Francisco… This was one of the first major cross-country road trips, and it planted the idea in Eisenhower’s mind that the federal government could and should make improving US highways a priority…

In 1919, America’s network of roads that Eisenhower traveled on was, for the most part, still rudimentary.

In 1916, the Lincoln Highway had been designated, but it wasn’t a proper highway. The Eisenhower convoy mostly traveled the Lincoln Highway, with some detours. The motorcade included more than 80 vehicles. It left Washington DC on July 7, 1919, and took seven and a half hours to reach its first stop at Frederick, Maryland, a distance of 46 miles. That’s where Eisenhower joined the group.

That 6 miles an hour pace is what the convoy would average in its drive across the country. It took them 62 days to make it to San Francisco.

In 1919, usable roads hardly existed west of Indiana. When it rained, vehicles got stuck in soft spots on the roads, up to their hubs, and had to be pushed out. In Nebraska, they found sand to be the enemy. One day, it took seven hours to pull all the trucks through 200 yards of quicksand.

Elected in 1952, Eisenhower hoped to build the highways that he had talked about for years. The Federal-Aid Highway Act of 1944 had authorized the construction of a 40,000-mile “National System of Interstate Highways”, but hadn’t provided funding to pay for the construction.

Eisenhower’s new Federal-Aid Highway Act passed in June 1956. It authorized the construction of a 41,000-mile network of interstate highways spanning the nation. It also allocated $26 billion to pay for them. The federal government would pay 90% of the costs of construction, using a national fuel tax.

Thereafter, that great American institution, the road trip, could begin. Today, the Interstate Highway System is more than 46,000 miles long.

Flash forward to 2018. We know public spending peaked at 2.2% of inflation-adjusted GDP in 2009 and has fallen ever since. By late last year, it was down to about 1.6%.

President Trump said while introducing his new infrastructure plan:

It is time to give Americans the working, modern infrastructure they deserve.

Reading Trump’s plan, it is clear he thinks we deserve nothing. Disagree? Start by looking at Trump’s budget proposal. Jared Bernstein says:

The budget proposes $200 billion over 10 years, but as budget analyst Bobby Kogan tweeted: “The budget cuts $178 billion in…transportation [not including cuts to] water, broadband…and energy. This means [Trump is] giving $200 billion with his left hand but taking away that much with his right.”

$20 billion a year doesn’t go very far. The plan shifts at least 80% of the investment in infrastructure to private investors, states, and cities. This is problematic, because Trump’s tax plan significantly lowers the amount of federal taxes that state and local taxpayers can deduct from their tax bill. This will make it much harder for states and cities to raise the revenue to support infrastructure spending, or any other public needs.

The LA Time’s Michael Hiltzik says it best: (brackets and emphasis by Wrongo)

The whole package should mostly be seen as [typical of] the Trump administration’s approach to governing: programs with virtually no rationale and without adequate financing, along with a commitment to getting government off the backs of the people so Big Business can saddle up.

This is Right Wing ideology at work. They passed a huge tax cut in order to “starve the beast” that is the US government, while at the same time, they will “feed the beast” via $trillions of deficit financing. Cities and states are not flush with cash for new infrastructure projects, and the private sector won’t do anything that reduces shareholder return, so Trump’s plan is dead on arrival.

As for financing America’s roads, increase fuel taxes. Let drivers amortize the building costs, a system Eisenhower used. Add tolls where we must. Make the traffic move faster and safer.

Trump should be like Ike: Pay for our infrastructure!

Claw back some tax cuts. Cut defense spending. Pay for purer water for our towns and cities. Pay for better schools, a smart electric grid, and better ports and airports.

Pay for them all with federal dollars.

(Wrongo is indebted to the tywkiwdbi blog for covering the Eisenhower road trip on Lincoln’s birthday)

Monday Wake Up Call – February 12, 2018

The Daily Escape:

The Three Sisters, viewed from Canmore, Canada – photo by DiscInPc

Strategy must be lost on the Trump administration. We revisit Afghanistan. Pepe Escobar reports that for the past two months, Beijing and Kabul have been discussing the possibility of setting up a joint military base on Afghanistan’s border with China. Escobar quotes Mohammad Radmanesh, a spokesman for the Afghan Ministry of Defense:

We are going to build it [the base] and the Chinese government has committed to help financially, provide equipment and train Afghan soldiers…

Escobar says that the military base will be built in the Wakhan Corridor, a mountainous and narrow strip of territory in northeastern Afghanistan that extends to China, and separates Tajikistan from Pakistan. He also reports that, according to local Kyrgyz nomads, joint Afghan-Chinese patrols are already active there.

Beijing is trying to prevent Uyghur Islamic fighters, who are exiled in Afghanistan, from crossing the Wakhan Corridor and conducting terror operations in China’s Xinjiang territory. Xinjiang is an autonomous territory in northwest China that has seen years of unrest, primarily from Muslims.

China’s concerns are backed by solid evidence. In 2013, al-Qaeda’s Ayman al-Zawahiri supported jihad against China in Xinjiang. In July 2014, Abu Bakr Al-Baghdadi, the leader of ISIS, supported a move against Xinjiang.

China doesn’t want its Belt and Road Initiative, or the New Silk Road, which will connect China with Asia, Africa, the Middle East and Europe to be compromised by terrorists. And one of its links, the $57 billion China-Pakistan Economic Corridor (CPEC), could be hurt if terror threats abound in Central and South Asia. It could also affect China’s investments in Afghanistan’s mineral mining industry.

The Chinese are smart. Their new ambassador, Liu Jinsong, was raised in Xinjiang and was a director of the Belt and Road Initiative’s $15 billion Silk Road Fund from 2012 to 2015. He understands how the local problems could hurt the New Silk Road. The plan is to prevent terrorists from having access to Chinese territory, and work to broker a deal between Kabul and some factions of the Taliban. If this sounds familiar, it is also Russia’s strategy, and Iran’s, and India’s as well.

Compare this joint approach with Washington’s strategy. Trump’s plan for Afghanistan involves defeating the Taliban, and then forcing them to negotiate. Since the Taliban control key areas of Afghanistan, the US strategy requires a new mini-surge.

This pits the US “coalition” against all of the great powers of the region. Think we are likely to succeed?

Let’s link this up with another Trump idea, his parade. Danny Sjursen, an Army major who served in Afghanistan wrote in an article in the American Conservative, “Parade of Defeat: Trump Prefers Spectacle Over Strategy”:

Remember when military parades actually celebrated victories? Those were the days, or, better yet, the day—June 8, 1991…after the US military’s 100-hour lightning ground war ejected Saddam Hussein’s forces from Kuwait, some 8,800 soldiers marched down Constitution Avenue in Washington, DC…The White House called it the National Victory Celebration.

Sjursen adds: (brackets by Wrongo)

So, one cannot help but wonder what it [Trump’s Parade] is…celebrating. Nearly 17 years of indecisive quagmire?

He goes for the kill: (emphasis by Wrongo)

Trump…has turned the petty political appropriation of the troops into an art form. Soldiers are a pawn in the game, a very old game, in which the hawkish interventionists inspire the base and depict the opposition as dovish traitors. This is…meant to disguise what amounts to paltry policy in foreign affairs; it’s spectacle not strategy.

Linking our non-strategy in Afghanistan, which all of the region’s powers hope to solve with trade and diplomacy, to Trump’s parade, a good question is: How are our wars doing? The short answer: Badly. But haven’t we “beaten” ISIS? Not really. ISIS has leaped across the borders of Syrian and Iraq to Africa and Asia. That’s why China is building a base in Afghanistan.

For all the talk of new strategies about “turning corners” and “breaking stalemates,” more fighting in Afghanistan will just waste more of our resources. Today, a record number of Afghan provinces and districts are under the control of, or contested by, the Taliban. Short-term success isn’t sustainable.

Trump has no exit strategy. But no worries, he has a parade strategy.

So, time to wake Trump the (family blog) up. He’s got to get focused on closing a deal with his Russian and Chinese friends. To help The Donald wake up, here is the “Unity JAM” by Tony Succar, a percussionist and arranger:

Those who read the Wrongologist in email can view the video here.

Sunday Cartoon Blogging – February 11, 2018

We watched the time-delayed opening ceremony of the Seoul Olympics. Yesterday’s news at night.

Time seemed to move slowly, except when the cameras showed Mike Pence frowning. That guy should never get a real job in government. Wait, he has one? Ohh. Sorry.

Not shaking hands with the North Korean representatives is beneath America’s leaders. His stony behavior won’t make any friends on the global stage, and while the NoKo’s clearly are not our friends, what does not shaking hands prove?

Then there’s this: Pence skips Olympics dinner in snub to North Korean officials. Instead, he had dinner with the US team. Maybe what caused him to cancel attending the Olympic dinner was a desert, called “A Plate of Hope”. It featured a map of Korea with chocolate barbed wire dividing it. By pouring on a hot sauce, the barbed wire between the north and south melted away. How would America benefit from that?

Is it now considered appropriate to be disrespectful to your host because you don’t like his guest list? Is bailing out on the official Olympic dinner, and not shaking hands the worst Pence will do while representing us at the Olympics? Let’s hope so. On to cartoons.

A wife beater without a security clearance reading everything in the White House is the shocking part:

The Olympics hits close to home:

We’re gonna see something really special at Trump’s big parade:

Trump’s gonna see something really special at the parade too:

A Tesla in orbit gets noticed:

Our local bookstore’s display:

Saturday Soother – February 10, 2018

The Daily Escape:

Lighting the Olympic torch – photo by Chang W. Lee

Did anybody see the bus that ran over Wrongo’s 401k?? It was a tough week on the retirement savings front for anyone who uses the capital markets to bolster their net worth. Retail investors are trapped – they can’t sell their holdings quickly, and there doesn’t seem to be a safe haven for their cash if they manage to get out of the markets only slightly bruised. Fear seems to be guiding Mr. Market.

Also, Washington finally passed a bi-partisan budget deal, but only after a brief shutdown. Sadly, it adds more than $1 Trillion to the national debt. It’s hard to square the Republicans’ deficit hawk ideology with their sudden willingness to spend whatever it takes to give the military whatever it wants.

During the recession, (Obamatime) the Republicans argued that responsible people tighten their belts when times are bad, just like people do with their household expenses. Now, we really shouldn’t use that argument for governments who can create their own currency. Despite that, if you really think the government should be run like a household, wouldn’t a responsible family increase their savings and pay down their debts when times are good? That would give them a “rainy day” fund that they could dip into when times were bad. Or, they could then go back into debt to get through the rough patch.

But today’s Republicans are saying: “Times are great! Let’s max out the credit card”. This will soon be followed by: “Oh shit, now I have to starve the kid so I can make the payments on my student loans”.

They won’t even follow their own dumb rules.

That was the week that was. A stomach-churning, no sleeping, hot steaming pile of anxiety. You need a real break.

To help you forget about your financial losses and your government’s foolishness, settle into a comfortable chair with a Vente cup of Volcanica Coffee’s Blue Mountain Peaberry coffee from the Clydesdale estate in Jamaica (only $89.88/lb.). You can’t afford it after what happened on Wall Street, but like Congress, you have a credit card. So go for it!

The Clydesdale coffee region is near the center of Jamaica’s Blue Mountain coffee area. The Clydesdale Estate was founded in the 1700’s.

Now, listen to a throwback to the 2012 Olympics in London. Here is the London Symphony Orchestra conducted by Sir Simon Rattle with a performance of “Chariots of Fire”. The performance includes physical comedy by Mr. Bean (the British comedian Rowan Atkinson):

This isn’t high art, but it is fun, and tangentially relevant to the Olympics.

Those who read the Wrongologist in email can view the video here.

The Countries Arrayed Against Us in Afghanistan

The Daily Escape:

Gas crater in Turkmenistan. It has been burning since the 1970s when Soviet engineers accidentally collapsed it while exploring for gas. The escaping methane was lit to avoid poisoning nearby villages. It has been burning ever since. Photo by Amos Chapple

Afghanistan has been burning for about as long as that gas crater. We are now ramping up our commitment to the Afghans by shifting military resources from Iraq and Syria back to Afghanistan.

On one hand, our presence makes it very difficult for the Taliban to win. They don’t have an air force, or anti-aircraft weapons. The Afghan Army is better trained than before, and they greatly outnumber their opposition.

On the other hand, the Afghan government can’t win; 40% (or more) of the country’s rural districts are under the Taliban’s control. They are active in other parts of the country. Government corruption remains rampant, and there’s a constitutional crisis in Kabul that’s been going on for three and a half years.

But let’s talk about the countries that are arrayed against Afghanistan. Iran, Pakistan, and Russia, all of which share common borders with Afghanistan, and all of which would be quite happy to see the US fail in its 16-year long war, are working with the Taliban. According to Carlotta Gall in the NYT:

Iran…is providing local Taliban insurgents with weapons, money and training. It has offered Taliban commanders sanctuary and fuel for their trucks. It has padded Taliban ranks by recruiting among Afghan Sunni refugees in Iran, according to Afghan and Western officials.

Ms. Gall quotes Javed Kohistani, a military analyst based in Kabul:

Having American forces fight long and costly wars that unseated Iran’s primary enemies has served Tehran’s interests just fine. But by now, the Americans and their allies have outlasted their usefulness, and Iran is pursuing a strategy of death by a thousand cuts to drain them and cost them a lot.

So, Iran is thinking strategically. They have outmaneuvered us in Iraq, and in Syria. And they are siding with the Taliban against us in our biggest bet in the Middle East.

They are not alone. Russia now supports the Taliban. They are backing them in regions where the US is carrying out airstrikes. Their initiative reflects Moscow’s concerns that Afghanistan might become a new staging ground for Central Asian jihadis pushed out of Syria and Iraq after the defeat of ISIS. Moscow thinks that scenario could threaten its own security.

Also, Russia is trying to build an international consensus around direct engagement by major countries with the Taliban. This from the WaPo:

Russian policymakers support engagement with Taliban factions that support a diplomatic settlement in Afghanistan, while eschewing factions that seek to destabilize the war-torn country. Moscow’s selective engagement strategy toward the Taliban contrasts markedly with Washington’s historical resistance to engagement with the Afghan militant group.

Russians are inserting themselves in Afghanistan following their very successful intervention in Syria. Russia’s approach could increase its status as a counterweight to US influence in the Middle East.

Finally, Pakistan has long been recognized as a safe harbor for the Taliban. We have long believed that there is no way we can seal the border between Pakistan and Afghanistan, so Taliban troops are free to leave the battle and return to relative safety in Pakistan. Our strategic concern has been to balance the possibility of Pakistan’s nuclear weapons falling into terrorist hands, against the chance that our desire to crack down on their safe havens for the Taliban will alienate them.

The Taliban is undefeated mostly because Pakistan gives it support and sanctuary. The Trump administration has told Pakistan that it will no longer tolerate them providing the Taliban with a safe haven, but whether it changes anything on the ground remains to be seen.

We have an array of strong competitors who share borders with Afghanistan, all of whom want us to lose. And Afghanistan is a bad hand for nation-building: Over 50% of the population is under 19, and 39% are impoverished.

That’s a lot of young, impressionable kids with nothing to lose, and every reason to earn a living through illicit means, or by joining an insurgency. And Afghanistan’s population is growing faster than its economy. When the US invaded in 2001, the population was approximately 21 million people; today it is 35 million.

For anyone hoping to disrupt the Taliban’s ability to recruit, this is very bad news. The Taliban’s opium trade accounts for 400,000 jobs alone. That’s more jobs than those that are employed by the Afghan National Army.

Again, we should insist that Trump and the Congress answer these questions:

Why are we there? What end state are we trying to bring about?

Places That Don’t Matter

The Daily Escape:

Maroon Bells, CO in winter – photo by Glenn Randall

America’s forgotten masses used the ballot box in 2016 to ram home a message to their betters. The message was that we shouldn’t ignore the places that don’t matter, those places that once had middle class jobs, and now have few options. The Trump election was one way to signal all was not well in the America’s decaying small towns.

We long ago retreated from the idea that the central government has a responsibility to look after the lagging places. It isn’t an invisible, unstoppable force that directs all the wealth generation to cities: It’s a system of deliberate centralization, by individuals who control capital, to concentrate productive efficiency and thus, wealth. The left-behinds are on their own.

The reality is that regional or town regeneration is very hard, once the original reason for the town’s existence is lost. Places that don’t matter have to find ways to build wealth locally, and then keep that money local. Locally produced goods and services keep regions alive.

Most solutions are based on the usual arm waving that says: “let them have training” or, “they really need to move where the jobs are”. These ideas have largely failed. Figuring out how to revive these communities requires better policies.

The revenge of the places that don’t matter is the rise of local populism, the increasing opioid use, and declining longevity. The stakes are high, but maximizing the development potential of each town has got to be the answer.

Here is one solution. The WaPo has a long read about how a liberal DC entrepreneur set out to help West Virginians. And for a very long time, Joe Kapp’s help was refused. He was the object of a vicious online campaign, targeted by homophobia, and maligned as a carpetbagger.

When Kapp, 47, an entrepreneur decamped to a West Virginia cabin in 2012 with his partner, he’d come to take a sabbatical. The town is Wardensville, pop. 256. From WaPo:

Those who do work locally gravitate toward poultry processing, furniture manufacturing and agriculture, but the numbers aren’t good. In 2015, the unemployment rate…was 7.5%, compared with 6.7% statewide and 5.3% nationally. The per capita income…was just under $28,000 a year, compared with about $37,000 for the state, and $48,000 nationwide.

The basics are lacking. The area doesn’t have Internet. Kapp says:

You’ve got kids doing their homework in McDonald’s parking lots. People in most of the country just have no idea.

And even community college enrollments suffer. Only 10% of West Virginia high school students enroll in community college, compared to 50% nationwide.

Kapp soon befriended the president at the local community college. From there, it wasn’t long before he was helping the college launch an innovative project, the Institute for Rural Entrepreneurship and Economic Development (IREED), aimed at helping to diversify the regional economy.

Kapp initially failed to gain traction, but things have gradually turned around. He thinks this demographic has more potential than the coastal elites give them credit for. He is certain that by harnessing local knowledge, like agriculture, they can start businesses, and put their own people back to work.

Every town wants its own Amazon, but in rural communities, that’s not an option. They need to create an ecosystem that promotes a small-business culture and entrepreneurship. So Kapp’s assistance in establishing the IREED with the community college got the idea off the ground. No community college in the state had anything of the kind.

The goal of the IREED is to help the local agricultural community think of itself as entrepreneurial.

He is developing a program that will allow community colleges to offer low- or no-interest micro-loans, around $5,000, to aspiring entrepreneurs. These individuals would then take entrepreneurship and business-development courses at the lending college. Kapp:

A bank might say, ‘This guy’s too risky,’ But a community college can say, ‘I know this guy. We work with him. I am vetting and validating his ability to be able to pay back the loan.’

In other words, it’s development banking on a community level. Today, most community banks mainly fund real estate, and they still follow the model where the borrower needs to pledge collateral to get the loan. In a world where services are the business’s primary asset, collateral has no meaning.

So the micro-loans by schools may be a perfect first step to bootstrapping these persistently poor towns.

This is a tentative step. It may not be scalable, but if we are looking for the greatest “social impact indicators”, it is the degree to which people feel secure economically, and safe in their community.

Always has been, always will be.

(The concept of this column, although not the solutions, is taken from “Revenge of the Places That Don’t Matter” by Andrés Rodríguez-Pose, Professor of Economic Geography, London School of Economics. Originally published at VoxEU)

Monday Wake Up Call – February 5, 2018

The Daily Escape:

-15° sunrise through Hollow Rock, Grand Portage, MN. The sun lines up perfectly only twice a year – 2018 photo by Tuckolson.

Sunday brought a Super Bowl victory by the Eagles, as Wrongo predicted. The week begins with Mr. Market in charge of our financial destiny after the Dow dropped 666 points last Friday. Adding 200,000 new jobs and higher wages, possibly because of minimum wage rate increases in 18 states, should have been good news. But Mr. Market thinks wage increases mean wage inflation, and that weakens corporate profits, which cannot be tolerated. So we must be punished.

This week, the focus shifts to the Winter Olympics in South Korea (SK). And, the Trumpets plan to ratchet up their rhetoric about North Korea (NK). The Guardian reports that VP Mike Pence is leading the US delegation, and he plans a war of words on NK’s participation:

Vice-president Mike Pence will stop North Korea “hijacking” the Winter Olympics, an aide said on Sunday, by using his own presence at the Games to remind the world “everything the North Koreans do at the Olympics is a charade to cover up the fact that they are the most tyrannical and oppressive regime on the planet”.

Axios quoted another WH source:

North Korea wants to make this about cute photo ops. The vice-president is countering North Korea’s desire to control the message…We’re not going to cede two weeks of world media to North Korea.

So, no dice on cooperation between NK and SK. But, the reality is much, much worse. The NYT points toward signs that a war with North Korea may be coming. They say that the White House is frustrated by the Pentagon’s reluctance to provide Trump with options for a military strike against NK. HR McMaster, Trump’s national security adviser, believes that for Trump’s warnings to NK to be credible, the US must have better tactical military plans, including a “bloody nose” option. From the NYT: (emphasis by Wrongo)

But the Pentagon, they say, is worried that the White House is moving too hastily toward military action on the Korean Peninsula that could escalate catastrophically. Giving the president too many options, the officials said, could increase the odds that he will act.

Think about it: Our military leaders think that if they work up more tactical plans for striking NK, Trump will want to use one of them. And they think that would be a strategic mistake, since it will trigger a shooting war with NK that could kill millions on the Korean peninsula. It would almost certainly also threaten Japan, and draw in China as well.

Connecting the dots includes the disclosure that the White House decided not to nominate Victor D. Cha, a Korea expert, as ambassador to SK. Mr. Cha thinks he was sidelined because he warned the administration against a bloody nose military strike.

Then there is this: The WaPo’s Tokyo Bureau Chief, Anna Fifield flagged a report by a SK news outlet, Hankyoreh: (emphasis by Wrongo)

NSC Asia director Matthew Pottinger told Korea experts that a limited strike on the North ‘might help in the midterm elections’…

Fifield identifies Hankyoreh as “left-wing”, and says that it is the only news outlet currently reporting this. So, it could be nonsense, but it fits the messaging that the Trumpets are spooling out about NK. People keep wondering when Trump will reach rock bottom. Starting a war partially because you want to win the midterm elections would be it.

This sounds like something we need to know MUCH more about, and very quickly. The motives behind a preemptive strike transcend teaching Kim Jong Un a lesson. Trump might be thinking it would ward off Mueller’s possible charges, or the possibility of impeachment, if a Democratic Congress was seated in January 2019.

The quote may be fake news, but it’s not implausible that Trump’s administration could be thinking this. And it’s not clear which is more terrifying, that this thought is in the air in DC, or that some in SK are scared enough to make this up.

We need a serious discussion about preemptive war with NK. We are already living with the consequences of the unnecessary war George W. Bush started in Iraq, and we will pay for that for the rest of our lives.

We can’t let Trump start another.

Wake up, America! Time to find out what the truth is about giving NK a bloody nose. To help you wake up, here is My Morning Jacket with their 2008 tune, “I’m Amazed”:

Takeaway Lyric:

I’m amazed the lack of evolution
I’m amazed at the lack of faith
I’m amazed at the love we’re rejecting
I’m amazed what we accept in its place

Those who read the Wrongologist in email can view the video here

Sunday Cartoon Blogging – February 4, 2018

A few words about the Nunes memo: We had already heard all that it contains, so there’s nothing new to chew on except today’s Super Bowl nachos. Its main argument is that somehow, super-crafty Democrats, in league with the FBI, tricked four separate FISA judges into extending surveillance on suspected foreign agent, and Trump campaign staffer Carter Page. How? By omitting that the “primary source” of the information on Page was the “paid-for-by-Democrats” Steele dossier, which is “compromised by partisanship“.

Except that the Nunes Memo doesn’t prove any of this. The initial FISA warrant against Carter Page was based on the fact that the guy was a known counterintelligence risk who was in the habit of traveling to Moscow and Budapest and mixing with Kremlin officials and spies. The Steele Dossier took independent note of this, (which speaks to Steele’s ability to uncover at least some real information), but Page’s activities were already suspect, regardless of who paid Steele.

So, no matter what the Nunes memo claims, Steele’s information wasn’t crucial to their interest in Page, who had been under FISA surveillance since 2013 for his contacts with Russian spies in NYC.

The idea that the FBI only pursued Page because certain members of its management had Democratic sympathies is ridiculous. Would Trump have traded how he was treated by the FBI in October 2016 for the way Clinton was treated?

The FBI actually told the NYT that they gave Trump a clean bill of health. They incorrectly assured the public that Trump’s campaign was not being investigated for its ties to the Russians when that was exactly what they were doing. Were they in cahoots with Democrats when they did that?

Democrats must learn to pick their battles. Why scream about releasing a memo that most people (excluding Trumpsters) can now see is a nothingburger? What exactly were they trying to keep secret? Ordinary people don’t appreciate Chicken Little behavior. And most of the time they will give equal weight to Chicken Little A and Chicken Little B, because that’s how they have learned to deal with squabbling children.

Americans SO want politics to be honorable. It’s not. It’s just war by other means, on other battlefields.

Shots were fired from the Peanut Gallery: