Small town America – The Wrongologist

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)

The Daily Escape:

Sunrise, Island Park ID, November 2017

The WSJ’s Weekend Edition had an article about the cultural and economic split between small towns and big towns in America. In “One Nation, Divisible”, Michael Phillips follows a young woman, Caity Cronkhite, who left rural Indiana for San Francisco. Caity recalls:

All growing up, if we were too smart or too successful or too anything, there was always someone ready to say, ‘Don’t be so proud of yourself’…

Caity was smart. She bucked the system to graduate from high school a year early, but the school would not let her be named valedictorian, because she had skipped a grade. She left town, got a scholarship to Carnegie-Mellon, graduated and became a technical writer for SalesForce.com.

Still, she remained attached to her home town. She wrote an online 5000+ word essay about Kingman IN. It brought thousands of hateful responses from Kingman, including:

So keep your elitists’ rear ends in your little office cubicles while we handle the tough, physical things that keep you and your perfect friends alive…

That anger about town vs. city brought to mind Merle Haggard’s 1969 tune, “Okie from Muskogee”. Haggard and the band were on a bus outside of Muskogee when a band member joked that the citizens in Muskogee probably didn’t smoke marijuana. In about 20 minutes, Haggard had the song. The band played it the next night at the Fort Bragg, NC officers club. And after the verse:

We don’t burn our draft cards down on Main Street,
We like living right and being free.

The officers stood and gave huge applause. They had to play the song four times to get offstage. The song later went to number one on the Billboard country music charts. At the time, Reuters reported: (emphasis by Wrongo)

Haggard has tapped, perhaps for the first time in popular music, into a vast reservoir of resentment against the long-haired young and their underground society.

So in 2017, a young woman worries about being accepted in her small home town after finding success while living in San Francisco. While 48 years earlier, “Okie” was telling small town America to have pride, and that it was ok to be for the Vietnam War, and against student protesters.

These two events made Wrongo think about the roots of today’s fractious sociopolitical divide in America.

People in small towns have to fit in, the place is too small to look different, or subscribe to ideas that are outside the main stream in their town’s culture. If they do, the local hierarchy has ways of enforcing conformance with the dominant ethos. People insist that you should fit in. They think that everybody should fit in, and they don’t understand why there are places in America that don’t operate that way.

Haggard’s hit brought small-town America self-identification and pride. And it galvanized the “us” vs. “them” attitudes in small-town USA that were opposed to the growing counter-culture of the 1960’s, and the student opposition to the Vietnam War.

Americans always gather into relatively small groups. People in cities have misconceptions about small town life, just like rural Americans have them about cities.

The nature of today’s politics, and the nature of group identity in America pushes us into sparring camps. You can call it your “tribe”, your “people”, or your “team”, but groups in small-town America have a well-defined sense of identity. It is different from the identity politics in big-city America, where there are hundreds of examples of people of many different groups. Large metropolitan areas are much more diverse, but they are also knitted together by a transcendent identity with place.

Ms. Cronkhite’s parents planned on selling the farm and retiring, but Caity wasn’t ready to let it all go:

If I ever have kids, they’re never going to understand this huge part of me…I want there to be a reminder of where I come from and who I am.

Her parents sold her about 10 acres for the per-acre price her father had paid in 1972. Caity plans to build a small house. She said:

I’m still a rural American.

But she doesn’t plan on moving back just now. Fewer and fewer of us are rural Americans, and while those societies shrink, no dominant identity is replacing it.

But the sometimes-toxic sociology of small groups, or Merle Haggard’s sentiments, can’t be allowed to destroy what America has in common. In fact, appropriation of culture and patriotism by one tribe is a threat to our common good. Thus when Haggard says:

We still wave Old Glory down at the courthouse,

He’s misappropriating, since every town has always flown Old Glory at the courthouse, and wouldn’t dream of taking it down.

Time to wake up America! Fight the appropriation of our symbols and ideals. To help you wake up, here is Merle Haggard with “Okie from Muskogee”:

The Wrongologist

Geopolitics, Power and Political Economy

Tag: Small town America