Lileks: a report from "these strange, CHUD-infested outlands"
Sen. Obama was in town tonight, and made a speech. He said:
John McCain has spent a lot of time talking about trips to Iraq in the last few weeks, but maybe if he spent some time taking trips to the cities and towns that have been hardest hit by this economy -- cities in Michigan, and Ohio, and right here in Minnesota -- he'd understand the kind of change that people are looking for."
Right here in Minnesota? Hardest hit by this economy? What is he talking about, exactly? Is this a specific reference to a specific plight faced by specific towns, or a boilerplate remark about the dire lives of people trapped in the Bittervilles that dot the strange outlands?
Minnesota, like many states in the rich heartland, has a large farming economy, and if the farmers are struggling, its for reasons to complain. Between the demand for ethanol and the related boost in commodity prices, theyre doing well, thank you very much and this spills over into the towns that service the farms. My paper is running stories about how the prairie chicken is imperiled, because land previously idled is being brought back into service to raise crops and make money. Which is like reading a story about subterranean bacteria threatened by all the drilling for oil in North Dakota and Montana. Theres good news in there somewhere, you suspect.
The other industry in these strange, CHUD-infested outlands is tourism, which may take a hit from high gas prices. So Id ask the candidates both of them, and our Senators as well what theyve done recently to increase the supply of gas. Domestically. What they did a few years ago to prepare for a day when prices spiked and supply contracted. I suspect that people would be complaining about drilling in North Dakota if theyd seen enough National Geographic-quality photos of Bison herds; given enough preparation, the empty lands of NoDak could have the same rep as Alaska, a virgin expanse no sensible person would pierce with the godless drill. But leave that aside for a moment: aside from the aquifer-sucking ethanol boom, Minnesota is doing quite well when it comes to renewable energy. We have companies that make ginormous wind-power blades. But theyre having problems, too:
For the Pipestone plant, success has brought its own problems.
The plant that was lured here by a slew of local and state incentives is struggling to keep up with demand. Its blades and nose cones are back-ordered for two years.
So Suzlon is turning its attention to working smarter. New equipment coming this fall will computerize Suzlon's manual fiberglass "skin" cutting process. A new crane will soon hoist and place blades onto trucks more quickly than crews.
For now though, the company is trying to cope with the headaches that come with rapid growth.
A shortage of rental housing and workers in Pipestone forced Suzlon to bus in employees from Worthington, Minn., and Sioux Falls, S.D., at a cost of nearly $50,000 a month. Turnover remains a big problem.
Yes, headaches aplenty in struggling Minnesota, the third-largest producer of wind power in the nation: back-ordered wind-power blades and not enough employees.
There are economic trouble-spots, of course; the cities have been hit by the subprime crisis, which has exposed government spending projections based on the endless fountain of real-estate tax revenue, and the condo boom guttered hard, hitting people whod made speculative investments. Higher gas prices will hurt the core cities office markets, as they make suburban edge-city nodes look more attractive, and call into doubt the wisdom of spending a billion dollars linking Minneapolis / St. Paul with light rail when cheap flexible bus routes could help move core-city populations to and from the edge-city jobs.
What are the cures for the ills the state suffers in this economy? Cracking down on trade with other nations? As the aforementioned wind-power article notes, Suzlon Energy Limited is based in Mumbai, India, with operations in China, Russia, South Korea, Germany, Chicago and Pipestone. Good luck crafting a law that untangles that modern fact with deft precision.
New taxes? New regulations? If the Senator returns to these blasted heaths in the future, he may want to visit the town of Fargo, which borders Minnesota. On the Minnesota side higher taxes and more well-intentioned regulatory enthusiasms there is a smallish city called Moorhead, founded about the same time as Fargo. On the North Dakota side, where less is taken for a variety of historical reasons, there is a much larger town that provides a far superior quality of life. The communities even seem to have organized themselves, against all logic.
Minnesota isnt an old-line industrial rusty state dependant on the sale of smelting machinery, bolts and pistons. For heavens sake, this is the home of Pillsbury and General Mills and have you looked at the price of Lucky Charms lately? But were all so comfy and happy we regard a few consecutive quarters of diminished growth as the equivalent of the Ambergris Panic of 87, which closed two-thirds of all banks nationwide. Hardest hit, eh.
I know it was a shout-out for the locals, but really, dial it back a bit. Pick on someone else.
Posted by: Mike 2008-06-04 |