A short 30 months ago, I was honored and blessed to be chosen to lead a fantastic team at the Dalton-Whitfield Chamber of Commerce. I not only work with compassionate, energetic, and truly professional community developers, I also serve with amazing board members who give of their time, talent, and treasures serving our community. And as I reflect on where we were two and a half years ago and where we are today, it is my opinion that although we are a very good community, we have yet to achieve the status of being great.
As Jim Collins states in his book Good to Great, “Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice, and discipline.” My opinion is not intended to put our community down nor do I feel I am any kind of expert on the subject. Considering Collin’s definition, an argument can be made that greatness is achievable in our community. You could further argue that we are beginning to demonstrate a willingness to make appropriate conscious choices and to be disciplined in our approach to community development.
The Role of the Chamber
What really is a Chamber of Commerce? What is community development? Why is the Chamber involved in education, economic development, legislative affairs, and leadership development? These are very good questions. Although the answers to them can vary depending on the issue at hand, I will attempt to provide a progress report on our efforts to serve our community in its pursuit of greatness.
I am grateful for the Daily Citizen and their annual Progress Edition. Sometime we all need a more in depth look at the truly important issues facing our community, our state, and our nation. A typical news story rarely has the ability to fully communicate all the dimensions of an issue. Even though we have very good reporters in our community who work very hard to cover the news, some stories are too complex for even the best reporter. I will attempt to cover a number of areas the Chamber is working on and to provide a little more depth on a few community issues.
The mission of the Dalton-Whitfield Chamber of Commerce is to serve as the unified voice of business, to promote economic prosperity of the region and to build partnerships and leadership that improves the quality of life while delivering superior member services. Our vision is to provide the leadership necessary to leverage community resources and to build partnerships that are focused on positive community growth. We work to accomplish our mission and vision by focusing on three core areas: economic development, leadership development, and community development.
Economic Development
In October 2008 when I was given the honor to join the Chamber team, our local economy was in the middle of the great recession. Unemployment was at an all-time high, foreclosures were high and increasing, businesses large and small were struggling to say the least. Every sector of our community was feeling the brunt of a declining or recessionary economy. But even in such a bleak time, community and business leaders much wiser than me made the conscious choice to invest in and build for the future. Thus the Grow Greater Dalton initiative was born.
Grow Greater Dalton was and is a capital campaign created to accelerate the resource needs for economic and community development. The four year commitments totaled over $6.1 million for investing in key strategies that will take us to the next level. 2010 was the first year of execution for the initiative, and although the results were not on goal, they were significant given the economic times we are in. In year one, our community benefitted from the creation of 501 direct and indirect jobs or 15.6% of our four year goal. We also achieved $28 million in new capital investment in year one or 14.8% of our four year goal.
Since 2005 when the Dalton-Whitfield Joint Development Authority was created, we have come a long way in the economic development arena. Because of Grow Greater Dalton, we have an experienced and professional economic development team. They, in collaboration with our community’s elected officials, are building a tremendous economic development toolbox (or war chest) to compete regionally and globally.
In recent months, there has been considerable chatter about the new Carbondale Business Park. I deliberately use the word chatter in order to discuss the positive and negative feedback that we receive concerning the development of this park. We have received very positive feedback from our state project managers concerning the park because they can now show potential clients land that can be quickly acquired and built on. Businesses who are seeking to locate a new or expanded operation in our area can begin building here almost immediately because of all the predevelopment work that has already been completed. In this scenario, time is definitely money. Having a first-class, turn-key business park catapults our community ahead of most communities in the region.
Some of the negative chatter includes a few who are opposed to any type of government involvement in the free market system. Some members of our real estate community that have expressed concerns are only considering the individual transaction side of the process and have ignored the larger picture. Anytime a project as large as the development of a commerce or industrial park is concerned, everything will not go exactly to plan. It is very easy to armchair quarterback a process like this if one only follows the stories in the newspaper. I would even admit that those of us intimately involved have not agreed with every decision.
However, I can unequivocally endorse that having a commerce park that has the basic infrastructure in place will accelerate our ability to market our community and will accelerate development within our community. Some projects will be attracted to our area because of the commerce park, but will ultimately purchase or lease other land or existing buildings. Overall real estate activity will be increased and ultimately benefit all stakeholders. And accelerating investment will expand our overall tax base allowing tax rates to remain as they are or possibly even decrease over time.
Recently, the Dalton-Whitfield Joint Development Authority asked for our local governments to seek redevelopment powers through an instrument known as Tax Allocation Districts or TADs. Contrary to a few utterances in the newspaper, this tool is used in 49 states and has been successful in most cases. The largest and most visible TAD project in our area is the 138 acre Atlantic Station development off I-75 in Atlanta. An old environment brown field site was converted to a successful mixed-use development. In layman’s terms, a TAD allows a local government to build necessary infrastructure for a development with the anticipated tax dollars that the newly created development will generate once built. All other taxpayers in a jurisdiction are not affected.
The retail project off of Shugart Road is a development project that a TAD could have helped with. The infrastructure needs like demolishing the old buildings and building the accel and decel lanes for safer access into and out of the site could have been paid for through a TAD. In other words, the developer could have borrowed the capital needed for some of the project costs, and then paid back the loan through his future tax payments. The community wins by having needed and desired retail and commercial investments, and the developer can complete a development quicker by having more financial capital available.
Some have also commented and insinuated that attracting retail development is not a worthwhile endeavor because retail jobs are low paying. Although the retail sector (shopping and dining) do pay lower average wages versus manufacturing, successful communities need both segments in order to be successful. We have tremendous retail leakage in our community because many of our citizens travel to Chattanooga and Atlanta to shop and eat at certain establishments not available here. So the more we can attract these amenities here, we keep those dollars circulating in our economy.
And as a community suffering with an unemployment rate of 13%, jobs are needed of all types. As Dalton State College transitions to a more residential campus, young people (especially college students) need entry-level employment opportunities to finance their pursuit of higher education. Expanding our shopping and dining options can provide the needed part-time and full-time employment opportunities. And we will benefit from keeping shopping local by also keeping the sales tax revenue these transactions generate for our use in our community. Expanded development in the retail sector is beneficial to our community with or without the use of a TAD. But by having the ability to use one when needed makes us more competitive.
A final program of work under the economic development scope of our mission is workforce development. Most jobs of the future will require some level of education beyond high school. And a greater majority of those receiving post-secondary education today and in the future will be in technical fields. There will always be a need for those receiving the traditional four-year bachelor degrees. But most other jobs not requiring a four-year degree will require one or two years of education beyond high school.
The business community and the Chamber worked hard to get Georgia Northwestern Technical College here in our community to expand the educational opportunities available to those preparing for the workplace. Now that Georgia Northwestern will be offering classes beginning in August, we will have the best of both worlds. Future workers young and not so young can choose which institution best fits their needs. And our community will benefit from more and more of our citizens having the workplace skills that will help them be successful.
Leadership Development
The Dalton-Whitfield Chamber of Commerce is well known for its signature leadership development program – Leadership Dalton-Whitfield. We are in our 26th year of helping the current and future leaders of our community understand our community a little better in preparation for service. The 30-40 participants annually have a unique opportunity to really get to see our community from a variety of perspectives and through well-planned sessions ranging from local economics, education, the judicial system, etc. Under the capable stewardship of community leaders who volunteer their time and talent to leading this endeavor, Leadership Dalton-Whitfield will continue equipping our community’s leaders.
For our younger future leaders, the Chamber created the Emerging Leaders program a couple of years ago. This program is targeted at those young professionals who are in the early years of their professional careers but are interested in beginning their service to the community. These future leaders get to learn about our community while also participating in leadership development. As we assist the participants in building their leadership capability, they will in turn be more prepared to serve in the areas they are passionate about.
Community Development
The area of Community Development is a very broad segment of our mission including: community visioning, legislative advocacy, etc. Almost fifteen years ago, the Chamber participated in the Target Tomorrow visioning process. In 2008, after learning about the Archway Partnership community outreach program of the University System of Georgia, it seemed appropriate that we become an Archway community to develop community strategies that will assist us in becoming a great community. After almost two years of work involving hundreds from our community, we have created many strategies that once executed will produce tremendous results.
The Chamber continues to advocate on behalf of our community and our business partners for effective governance at the local, state, and national levels. We work with our local cities and our county to develop and implement policies that will benefit our community. At the State level, we work throughout the legislative session reviewing bills and communicating with state officials our thoughts on those that will be beneficial to us. We do not always get the legislation passed that we support, but our success rate is better than average.
Consider the recent discussions between the City of Dalton and Whitfield County. Although the Chamber did not initiate the discussion or lead the retreat that led to the decision to pursue a Charter Commission, we do support a study of creating a new form of government. The primary reason for supporting the study of a new way of governing will at a minimum enable the two governing entities to understand the services provided by both. The Great Recession in my opinion has reset the economic wealth button. The debt owed at the national level and most state levels will put tremendous pressure on the financial affairs of all entities. Families have lost tremendous economic means over the last four years. And unemployment is forecasted to remain higher for a long time. Thus governments of all types need to really study ways to deliver needed services more efficiently. We should never continue doing business the way we always did it.
Getting from Good to Great
I stated many times that my family and I love our community. Of all the places I have lived and worked, Dalton has been a wonderful place to raise our children. Being a good community is better than most. There are very few communities that would be rated as great. But I think we have the potential to achieve that classification.
What will it take? There are many areas that we are improving in and others that we are at least now willing to discuss that if changed would propel us to greatness. Although we have made tremendous strides over the last five years in economic development, we have more to do. The foundation has been laid. But to achieve greatness in economic development, we need to be chosen by the companies we are recruiting. In a short few years, we have moved from not even being considered, to getting on the initial list of communities competing for projects, and now we are making the short list of perspective companies. As we become the community of choice for relocating and expanding companies, we will move toward greatness.
In the area of education and workforce development, again significant strides have been made. But until every student graduates from High School and receives at least one year of post-secondary education, we will fall behind most global communities. We need a comprehensive overall of our American education system. It must be innovative, inspiring, and rigorous. All students must be able to perform basic work place skills or they will simply be unemployable. Comparing our schools only against comparable Georgia schools will not enable ours to become best in class. Our children are born with the requisite intelligence, but many get left behind early in the process and never catch up.
The most important area that I feel must improve for us to become great is the area of working together. I will not by name acknowledge the section in the newspaper that people are allowed to comment in, but I will say that I scan this section only to confirm how far we have to go to reach greatness. Although I am convinced that the same ten people call in 90% of the comments, it amazes me how negative and petty some people can be. Until the majority of the comments are complimenting someone or some group or just praising the blessed place we all call home, I am convinced we have work to do.
For the first time in my ten years of living in Whitfield County, I feel we have tremendous leadership capacity in all the right places. We must seize this time by putting aside past prejudices and differences and work to build a greater and more unified community. I am not saying everything has to merge. But I am saying we need to work harder and better together in maximizing our strengths and minimizing our weaknesses.
As Vincent Van Gogh said, “Great things are not done by impulse, but by a series of small things brought together.” The Dalton-Whitfield Chamber of Commerce pledges to work with all stakeholders who seek to build a great community.
Monday, February 20, 2012
Defending Commerce
One would assume that a nation built on the belief in a free market economy would appreciate the enterprise of commerce. But amazingly, business and industry is held to a much higher standard of conduct than most other entities. And even when business leaders are recruited for input on a complex issue; their recommendations are ignored and rarely implemented.
Let’s start with conduct… most businesses that I have been involved in have a very high standard for conduct. Due to the effects of employee behavior on a business’ reputation or success, most have very strict codes of behavior. If a manager or someone in a supervisory position behaves inappropriately, they are routinely and quickly terminated on the basis of violating company policy.
Recently a school teacher who was arrested for driving under the influence on the way to school did not immediately lose her job. I am sure that the teachers union required the school system to pay her while on administrative leave until acquitted or convicted. But in the business world, an employee would in most cases be terminated for such an offense.
Consider the many, many examples of elected officials who have been accused (and in most cases eventually admitted their guilt) of all kinds of inappropriate behavior and remained in office long after the media became distracted by the latest “news” event. It is unfathomable for me to understand how the congressman from New York can even consider remaining in office. It is even more unconscionable to think his district would reelect him. Again, such behavior by someone in the business or corporate world, would be grounds for immediate termination.
Recently a column ran in the Chattanooga Times Free Press that discussed a study that members from the business community performed on behalf of the Hamilton County Board of Education. The school board, in espousing that business leaders might be able to recommend ways the system could save money or operate more efficiently, created a task force to study the school system and make a report of their recommendations.
According to the story, the task force recommended sweeping changes including closing small and inefficient schools, reducing the paid staff of the system by over 1400 employees, and consolidating some functions that were deemed duplicative. As you probably guessed, most of the recommendations were ignored. In the three years since the recommendations were presented, approximately 34 positions have been cut – a far cry from the recommended 1400.
I am not advocating wholesale layoffs. Our community, state, and nation have far too many of our citizens unemployed. But I am advocating that the inefficient and ineffective use of scarce resources eventually negatively affects the golden goose – businesses and industries that employ most of us, contribute generously to all non-profit causes, and pay most of the taxes. Why do we consistently abuse our nation’s golden goose?
Last year our state leaders created by law a tax reform council who were tasked with studying our tax code and making recommendations to improve the code and our state’s competitiveness. The special council included academics and business leaders. Their recommendations were supposed to receive an up or down vote with no amendments. At the ninth hour, the council’s recommendations were not considered supposedly because the financial assumptions made in making the recommendations could not be validated.
The truth is the recommendations were inconsistent with certain political assumptions or philosophies, not the validity of the numbers. The XYZ Americans Against Taxation (fictional name) argued that reinstating the sales tax on food constituted a tax increase and a majority of our state elected officials have vowed to never raise taxes. The result – tax reform is in a coma and another group of well-qualified business leaders, after their work was ignored, will be hesitant to ever serve a similar purpose again.
So although our business leaders are extremely successful in managing their businesses and in serving their communities, commerce remains under attack on a variety of fronts. We are overly regulated and overly taxed. Government may not be able to be run like a business, but sound business principles could amazingly improve much that occurs in the public world.
Let’s start with conduct… most businesses that I have been involved in have a very high standard for conduct. Due to the effects of employee behavior on a business’ reputation or success, most have very strict codes of behavior. If a manager or someone in a supervisory position behaves inappropriately, they are routinely and quickly terminated on the basis of violating company policy.
Recently a school teacher who was arrested for driving under the influence on the way to school did not immediately lose her job. I am sure that the teachers union required the school system to pay her while on administrative leave until acquitted or convicted. But in the business world, an employee would in most cases be terminated for such an offense.
Consider the many, many examples of elected officials who have been accused (and in most cases eventually admitted their guilt) of all kinds of inappropriate behavior and remained in office long after the media became distracted by the latest “news” event. It is unfathomable for me to understand how the congressman from New York can even consider remaining in office. It is even more unconscionable to think his district would reelect him. Again, such behavior by someone in the business or corporate world, would be grounds for immediate termination.
Recently a column ran in the Chattanooga Times Free Press that discussed a study that members from the business community performed on behalf of the Hamilton County Board of Education. The school board, in espousing that business leaders might be able to recommend ways the system could save money or operate more efficiently, created a task force to study the school system and make a report of their recommendations.
According to the story, the task force recommended sweeping changes including closing small and inefficient schools, reducing the paid staff of the system by over 1400 employees, and consolidating some functions that were deemed duplicative. As you probably guessed, most of the recommendations were ignored. In the three years since the recommendations were presented, approximately 34 positions have been cut – a far cry from the recommended 1400.
I am not advocating wholesale layoffs. Our community, state, and nation have far too many of our citizens unemployed. But I am advocating that the inefficient and ineffective use of scarce resources eventually negatively affects the golden goose – businesses and industries that employ most of us, contribute generously to all non-profit causes, and pay most of the taxes. Why do we consistently abuse our nation’s golden goose?
Last year our state leaders created by law a tax reform council who were tasked with studying our tax code and making recommendations to improve the code and our state’s competitiveness. The special council included academics and business leaders. Their recommendations were supposed to receive an up or down vote with no amendments. At the ninth hour, the council’s recommendations were not considered supposedly because the financial assumptions made in making the recommendations could not be validated.
The truth is the recommendations were inconsistent with certain political assumptions or philosophies, not the validity of the numbers. The XYZ Americans Against Taxation (fictional name) argued that reinstating the sales tax on food constituted a tax increase and a majority of our state elected officials have vowed to never raise taxes. The result – tax reform is in a coma and another group of well-qualified business leaders, after their work was ignored, will be hesitant to ever serve a similar purpose again.
So although our business leaders are extremely successful in managing their businesses and in serving their communities, commerce remains under attack on a variety of fronts. We are overly regulated and overly taxed. Government may not be able to be run like a business, but sound business principles could amazingly improve much that occurs in the public world.
Congress Desperately Needs an Overhaul
Last week, I received an email that offered key reforms that could improve our federal government and its effectiveness. Supposedly these measures are being proposed by Warren Buffett of the famed Berkshire Hathaway and owner of Shaw Industries. I am not sure if these are Mr. Buffett’s ideas or not – but they are good ideas nonetheless.
At a recent meeting of Rep. Tom Graves’ Economic Advisory Council, many of these same proposals were discussed. The difficulty of getting Congress to reform itself notwithstanding, something has to be done if our country is going to get the kind of elected representation it deserves.
Our Founding Fathers intended that America be represented by citizen-statesmen. Elected officials were to offer their service to the country, serve honorably, and go home. It is my belief that service was intended to be an honor and a sacrifice for the good of the nation not the elected. Career politicians were never the desire of those who designed the greatest democracy on earth. Accordingly reform #1 provides that members of Congress not be granted tenure nor receive a pension. A Congressman should collect a salary while in office but receive no pay once out of office. And their service should be limited to two terms for a Senator and six terms for a member of the House of Representatives.
I have not always been an advocate for term limits on the basis that it is hard enough to get qualified people to run – why would you want someone who is doing a good job to be term limited arbitrarily? But given that members of Congress have become so entrenched in a system that overly advantages incumbents, now may be the time to guarantee citizen-statesman by instituting term limits.
Reform #2 would allow a Congressman to participate in the Social Security system just like all other Americans. All funds in the Congressional retirement fund upon the successful approval of the legislation would move to the Social Security system. All future funds would flow into the Social Security system. These funds would not be allowed to be used for any other purpose. If members of Congress want more retirement coverage, they could purchase their own just as all Americans do.
Even during the last three to four years in an economic recession not seen since the Great Depression, members of Congress have continued to receive generous pay increases. While Americans are losing their jobs and suffering pay cuts, our members of Congress have insured that their pay continue to rise. Reform #3 would prohibit Congress from voting themselves a pay raise. Congressional pay would rise by the lower of CPI or 3%.
I would further advocate that certain minimum standards be adopted that establish if they get paid at all. For instance, the primary responsibility of most Boards of Directors is to insure the financial solvency of the organization they serve. Similarly, I feel Congress” number one priority should be establishing a budget and living within it. Our current elected members of Congress have operated our country for over two and a half years without a budget. By the end of this year, we will once again face a government shut-down due to politics. For every month beyond the budget deadline that a budget is not passed, I would propose Congress receive no pay.
One of President Obama’s major legislative successes was his passage of the Affordable Healthcare Act. He and the Democratic controlled Congress wanted all Americans covered by health insurance. Ironically, the healthcare plan approved for all Americans is not the same healthcare plan that covers them. Reform #4 would require Congress to lose their current health care system and that they be required to participate in the same health care system as the American people. They should not have a plan that is dramatically better than that which protects its citizens.
Recently in the news it is alleged that members of Congress have profited from key investments based on their access to insider information. Why is it that a business leader, stock broker, or an individual investor can be imprisoned for such (remember Martha Stewart) but not members of Congress. And now that these activities have surfaced, Congress agrees to investigate itself. Why not the Security and Exchange Commission? Reform #5 - Congress must equally abide by all laws they impose on the American people. This one just seems obvious.
And finally, reform #6 - All contracts with past and present Congressmen are void effective
immediately upon the passage of the Congressional Reform Act and signed by the President. Unless these measures are immediately enacted, the very same members who approved them would be tempted to work the system to their benefit during any grace period or waiting period.
The cynic in me says that even these simple, yet reasonable reforms have little chance of being enacted and being allowed to reshape our democratic process back to one of honor and built on trust between the elected and the governed. But given the absurdly low approval ratings the American people give the current members of Congress, maybe with enough awareness and publicity we can get some traction behind this movement.
It used to be that most Americans disliked Congress, but loved their member of Congress. It would seem that even individual members have lost the trust of the citizens they represent. The bickering and division along party lines have become the norm, not doing what is right and moving our country forward. We deserve better!
If you agree with these simple reform measures, send them to your members of Congress and demand they pass the Congressional Reform Act. If enough of us demand action, maybe we can improve Congress and our Nation.
At a recent meeting of Rep. Tom Graves’ Economic Advisory Council, many of these same proposals were discussed. The difficulty of getting Congress to reform itself notwithstanding, something has to be done if our country is going to get the kind of elected representation it deserves.
Our Founding Fathers intended that America be represented by citizen-statesmen. Elected officials were to offer their service to the country, serve honorably, and go home. It is my belief that service was intended to be an honor and a sacrifice for the good of the nation not the elected. Career politicians were never the desire of those who designed the greatest democracy on earth. Accordingly reform #1 provides that members of Congress not be granted tenure nor receive a pension. A Congressman should collect a salary while in office but receive no pay once out of office. And their service should be limited to two terms for a Senator and six terms for a member of the House of Representatives.
I have not always been an advocate for term limits on the basis that it is hard enough to get qualified people to run – why would you want someone who is doing a good job to be term limited arbitrarily? But given that members of Congress have become so entrenched in a system that overly advantages incumbents, now may be the time to guarantee citizen-statesman by instituting term limits.
Reform #2 would allow a Congressman to participate in the Social Security system just like all other Americans. All funds in the Congressional retirement fund upon the successful approval of the legislation would move to the Social Security system. All future funds would flow into the Social Security system. These funds would not be allowed to be used for any other purpose. If members of Congress want more retirement coverage, they could purchase their own just as all Americans do.
Even during the last three to four years in an economic recession not seen since the Great Depression, members of Congress have continued to receive generous pay increases. While Americans are losing their jobs and suffering pay cuts, our members of Congress have insured that their pay continue to rise. Reform #3 would prohibit Congress from voting themselves a pay raise. Congressional pay would rise by the lower of CPI or 3%.
I would further advocate that certain minimum standards be adopted that establish if they get paid at all. For instance, the primary responsibility of most Boards of Directors is to insure the financial solvency of the organization they serve. Similarly, I feel Congress” number one priority should be establishing a budget and living within it. Our current elected members of Congress have operated our country for over two and a half years without a budget. By the end of this year, we will once again face a government shut-down due to politics. For every month beyond the budget deadline that a budget is not passed, I would propose Congress receive no pay.
One of President Obama’s major legislative successes was his passage of the Affordable Healthcare Act. He and the Democratic controlled Congress wanted all Americans covered by health insurance. Ironically, the healthcare plan approved for all Americans is not the same healthcare plan that covers them. Reform #4 would require Congress to lose their current health care system and that they be required to participate in the same health care system as the American people. They should not have a plan that is dramatically better than that which protects its citizens.
Recently in the news it is alleged that members of Congress have profited from key investments based on their access to insider information. Why is it that a business leader, stock broker, or an individual investor can be imprisoned for such (remember Martha Stewart) but not members of Congress. And now that these activities have surfaced, Congress agrees to investigate itself. Why not the Security and Exchange Commission? Reform #5 - Congress must equally abide by all laws they impose on the American people. This one just seems obvious.
And finally, reform #6 - All contracts with past and present Congressmen are void effective
immediately upon the passage of the Congressional Reform Act and signed by the President. Unless these measures are immediately enacted, the very same members who approved them would be tempted to work the system to their benefit during any grace period or waiting period.
The cynic in me says that even these simple, yet reasonable reforms have little chance of being enacted and being allowed to reshape our democratic process back to one of honor and built on trust between the elected and the governed. But given the absurdly low approval ratings the American people give the current members of Congress, maybe with enough awareness and publicity we can get some traction behind this movement.
It used to be that most Americans disliked Congress, but loved their member of Congress. It would seem that even individual members have lost the trust of the citizens they represent. The bickering and division along party lines have become the norm, not doing what is right and moving our country forward. We deserve better!
If you agree with these simple reform measures, send them to your members of Congress and demand they pass the Congressional Reform Act. If enough of us demand action, maybe we can improve Congress and our Nation.
Voter Apathy and Civic Disengagement
Regardless of the news medium (especially if it’s the national media), cynicism and negativity seem to dominate the headlines. With America reeling from three-plus years of economic demise, it is hard for most of us to feel good about the institutions that made us the envy of the world.
Robert Putnam in his best-selling book, Bowling Alone, discusses at length the issues of the collapse and revival of the American Community. His discussion on Civic Engagement was especially interesting to me. I am not sure if it’s the economy or if my concern in this area began before the start of the Great Recession. It may be the fact that my role at the Chamber and the work of the Chamber in general causes a real up-close and personal interaction with civic engagement.
Bill Vaughan is credited with saying, “A citizen of America will cross the ocean to fight for democracy, but won't cross the street to vote in a national election.” We have had marketing campaigns locally to encourage better turnout in elections. Even communities with good voter turnout rarely achieve turnout greater than 50% of registered voters. And the registered voters are typically less than half of the eligible voters.
Although citizens / voters seem to be more and more dissatisfied with the actions / inaction of their elected officials, voter apathy seems rampant. In our community, over the last few election cycles, more races for public office are uncontested vs contested. How do we get good, honest and effective leadership if few answer the call to serve?
Putnam attributed our decline in civic engagement to: the pressures of time and money, suburbanization, electronic entertainment, and generational change. Although Putnam makes a strong argument as to how each has affected America and the individual and collective civic engagement of Americans, he is quick to point out that these are complex subjects and we do not know exact causes or the precise impact each has had on the broader topic.
Most would agree that in a world dominated by workers who are constantly pressured to do more with and for less, and in an economy where most families are comprised of two-parent earners – it should be no surprise that these citizens would be less civically engaged than in other historical time periods. Every school administrator and teacher routinely acknowledges that educating young people is harder today than ever because parents are not as involved or engaged as they once were.
Who can argue that time and money can be negative influences on citizens engaging in community activities? If someone is gainfully employed, their work demands more of them than ever. And if not employed, it is difficult to give to your community when you do not have money for providing for your family much less gas to go to community meetings. It seems that most community volunteers are either retired or are employed young people who have not married or started their families. Time and money pressures certainly affect how much someone can give back and get involved.
During her visit / presentation a few weeks ago, acclaimed community engagement consultant and best-selling author Rebecca Ryan spoke to the issue of suburbanization. Again, few of us would argue that long commutes between home and work adversely affect our time for and desire for civic engagement. Ms. Ryan claims that young professionals are seeking communities to make their home that enable short commutes. They would rather spend time doing things they enjoy vs. driving long commutes between the suburbs where they live and to their jobs in the “big city.” Putnam states that Americans have always been nomadic. We tend to move more often than most other societies.
Prior to the electronic age, people actually got involved in their communities for entertainment and social networking. Today, we have every electronic gadget and technology at our disposal for entertainment. And young people will argue that they are networking through electronic means. I am still not sure how you get to know someone through Twitter or Facebook.
And the last remaining negative influence on civic engagement is generational change. Our grandparents (those before the Baby-boomers) not only worked hard – they saved their money, gave back to their communities, and not only survived but enabled our success in waging world war.
Generations since the “greatest” have rarely been tested like those before us. Small special interest groups have been heavily engaged in certain movements (civil rights, Vietnam War protests, etc.). I do not mean to demean or lesson the extraordinary outcomes of movements like the Civil Rights movement, but only to clarify that nothing sense WWII has required US citizens be all in. All of us who are baby-boomers and those that are following us have not had a pivotal historic event (or threat) that created the necessary zeal for community / civic engagement.
Some might argue that the current “occupy X” movement could create such a moment or the economic times we are in might be the rallying cry. But given the low turnout by American voters and the overall disinterest in public service, I am not convinced that we will suddenly see the tide turn toward citizen re-engagement.
As Gandhi said, “Be the change you want to see in the world.” My hope is we will once again heed the call and serve our communities and each other like those from the greatest generation did before us.
Robert Putnam in his best-selling book, Bowling Alone, discusses at length the issues of the collapse and revival of the American Community. His discussion on Civic Engagement was especially interesting to me. I am not sure if it’s the economy or if my concern in this area began before the start of the Great Recession. It may be the fact that my role at the Chamber and the work of the Chamber in general causes a real up-close and personal interaction with civic engagement.
Bill Vaughan is credited with saying, “A citizen of America will cross the ocean to fight for democracy, but won't cross the street to vote in a national election.” We have had marketing campaigns locally to encourage better turnout in elections. Even communities with good voter turnout rarely achieve turnout greater than 50% of registered voters. And the registered voters are typically less than half of the eligible voters.
Although citizens / voters seem to be more and more dissatisfied with the actions / inaction of their elected officials, voter apathy seems rampant. In our community, over the last few election cycles, more races for public office are uncontested vs contested. How do we get good, honest and effective leadership if few answer the call to serve?
Putnam attributed our decline in civic engagement to: the pressures of time and money, suburbanization, electronic entertainment, and generational change. Although Putnam makes a strong argument as to how each has affected America and the individual and collective civic engagement of Americans, he is quick to point out that these are complex subjects and we do not know exact causes or the precise impact each has had on the broader topic.
Most would agree that in a world dominated by workers who are constantly pressured to do more with and for less, and in an economy where most families are comprised of two-parent earners – it should be no surprise that these citizens would be less civically engaged than in other historical time periods. Every school administrator and teacher routinely acknowledges that educating young people is harder today than ever because parents are not as involved or engaged as they once were.
Who can argue that time and money can be negative influences on citizens engaging in community activities? If someone is gainfully employed, their work demands more of them than ever. And if not employed, it is difficult to give to your community when you do not have money for providing for your family much less gas to go to community meetings. It seems that most community volunteers are either retired or are employed young people who have not married or started their families. Time and money pressures certainly affect how much someone can give back and get involved.
During her visit / presentation a few weeks ago, acclaimed community engagement consultant and best-selling author Rebecca Ryan spoke to the issue of suburbanization. Again, few of us would argue that long commutes between home and work adversely affect our time for and desire for civic engagement. Ms. Ryan claims that young professionals are seeking communities to make their home that enable short commutes. They would rather spend time doing things they enjoy vs. driving long commutes between the suburbs where they live and to their jobs in the “big city.” Putnam states that Americans have always been nomadic. We tend to move more often than most other societies.
Prior to the electronic age, people actually got involved in their communities for entertainment and social networking. Today, we have every electronic gadget and technology at our disposal for entertainment. And young people will argue that they are networking through electronic means. I am still not sure how you get to know someone through Twitter or Facebook.
And the last remaining negative influence on civic engagement is generational change. Our grandparents (those before the Baby-boomers) not only worked hard – they saved their money, gave back to their communities, and not only survived but enabled our success in waging world war.
Generations since the “greatest” have rarely been tested like those before us. Small special interest groups have been heavily engaged in certain movements (civil rights, Vietnam War protests, etc.). I do not mean to demean or lesson the extraordinary outcomes of movements like the Civil Rights movement, but only to clarify that nothing sense WWII has required US citizens be all in. All of us who are baby-boomers and those that are following us have not had a pivotal historic event (or threat) that created the necessary zeal for community / civic engagement.
Some might argue that the current “occupy X” movement could create such a moment or the economic times we are in might be the rallying cry. But given the low turnout by American voters and the overall disinterest in public service, I am not convinced that we will suddenly see the tide turn toward citizen re-engagement.
As Gandhi said, “Be the change you want to see in the world.” My hope is we will once again heed the call and serve our communities and each other like those from the greatest generation did before us.
“United We Stand – Divided We Fall”
The phrase “United we stand – Divided we fall” may be overused but is as true today as when first used by Aesop in his famous fables and Patrick Henry in 1799. And in today’s economic climate, working together should be an imperative not a choice.
Any sports fan knows that an average team playing together can beat a more talented team that does not play together. Communities are no different. And given the difficult economic headwinds that continue to affect us, working together is a must for us to succeed.
Since 2005, our community has rallied around a unified economic development team / process. Steady progress is being made in the area of economic development. Our elected leadership for Whitfield County has invested in the Carbondale Business Park and instituted a 100% Freeport Tax Exemption. Our elected leaders for the City of Dalton and Whitfield County have agreed on an incentives process that is fair and competitive in the economic development marketplace. Through public and private funding raised through the Grow Greater Dalton campaign; our community’s economic development team has the resources to market our community globally for new investment and the creation of new jobs.
But even with so much going well, we are not as successful as we could and should be. All the good efforts are being impaired by division amongst our elected government entities. The current proposed SPLOST is a prime example that our elected leaders are not on the same page and do not collaborate on key issues such as tax policy.
A SPLOST is a useful, and most of the time preferred, tax instrument. A SPLOST allows all people to share the tax burden, residents and visitors alike. They allow us, the voters, to actually see something that our money went to build or to purchase. And properly used, they allow for us to maintain some of the lowest property tax rates in the state. They also demand a level of trust between the elected officials proposing them and the voters. The projects should be needed or validated through dialogue with the citizens. At a minimum, the participating governments should partner and collaborate in generating a recommended “Special Purpose” project list.
Because of more than a few examples in recent years of projects not being fully vetted or the citizens not feeling the right projects were delivered, the SPLOST instrument has been tarnished. On Nov. 8th, all of us will choose if the proposed projects are all necessary in these times. Few seem supportive of everything proposed. The success or failure will depend on how each voter weighs the overall good of the total vs. each individual project. The Chamber and its member businesses will continue to support a fair and balanced tax strategy that delivers public services at the most affordable cost.
The Chamber of Commerce and its members are grateful for those who stand up to serve our community. We recognize the sacrifice public service requires. And we will continue to work with all our elected officials for the betterment of our community.
The Great Recession has created tremendous budget pressures for all of our elected bodies. You would assume that this climate would create real desire among our officials to partner and work together. Examples of this have occurred. During the final days of working through the SPLOST referendum decisions, the Whitfield County School Board agreed to postpone placing an ESPLOST on the Nov. 8th ballot in order for the County Commissioners and City Councils to place one thus keeping the current sales tax rate at 6% and not going to 7%.
This action was encouraged by many hoping that the current penny could be maintained for one year to help fund the greatest capital needs of the County Commission and City Councils. And in 2013, our school officials could ask the citizens for a short-term debt focused ESPLOST that would follow the one year SPLOST. Given the County Commission chose a two-year, the county school board now has to seek an ESPLOST that is needed to retire debt with it being an additional one cent at least for one year.
The SPLOST that is being proposed was created haphazardly such that it is the first in our community’s history not to be backed by an intergovernmental agreement specifying the collaboration and agreement by those proposing it.
In many areas, our elected officials work hard to serve us and to make policies that will benefit our community. But in just as many instances, the lack of cooperation and collaboration is creating division between factions and prevents us from reaching our greatest potential.
The Charter Commission is working hard to identify greater ways we can restructure our local government in a way that increases the services we desire and need and provided at the lowest possible cost. And while they are doing their work, our current elected entities can and should work just as hard to understand the role each play and to collaborate in as many areas as possible.
It has been said that businesses don’t vote. But business does pay a very large portion of the property tax burden. As a major funding source for local government services, we not only encourage better cooperation and collaboration, we expect the best of our local officials just as they expect the best of our business community.
Given the commendable work of many local elected officials over the last 15-20 years, we can be proud that our community has over 20 services that are consolidated between our County government and our cities. The Charter Commission, if given the opportunity, could identify further ways we can consolidate public services and reduce duplication. But only if we as citizens and our local officials remain open-minded and committed to doing what is right and not being deterred by past prejudices or biases. When all is said and done, the business tax payer just like the residential taxpayer, simply wants the best public services for the most affordable cost.
In good times and bad, working together usually delivers better results than not working together. So as we face some of the worst economic times our community has faced in decades, and in a time when competition for new investment is as fierce as ever - we should be moving down a convergent path of partnership not a divergent path of isolation.
Any sports fan knows that an average team playing together can beat a more talented team that does not play together. Communities are no different. And given the difficult economic headwinds that continue to affect us, working together is a must for us to succeed.
Since 2005, our community has rallied around a unified economic development team / process. Steady progress is being made in the area of economic development. Our elected leadership for Whitfield County has invested in the Carbondale Business Park and instituted a 100% Freeport Tax Exemption. Our elected leaders for the City of Dalton and Whitfield County have agreed on an incentives process that is fair and competitive in the economic development marketplace. Through public and private funding raised through the Grow Greater Dalton campaign; our community’s economic development team has the resources to market our community globally for new investment and the creation of new jobs.
But even with so much going well, we are not as successful as we could and should be. All the good efforts are being impaired by division amongst our elected government entities. The current proposed SPLOST is a prime example that our elected leaders are not on the same page and do not collaborate on key issues such as tax policy.
A SPLOST is a useful, and most of the time preferred, tax instrument. A SPLOST allows all people to share the tax burden, residents and visitors alike. They allow us, the voters, to actually see something that our money went to build or to purchase. And properly used, they allow for us to maintain some of the lowest property tax rates in the state. They also demand a level of trust between the elected officials proposing them and the voters. The projects should be needed or validated through dialogue with the citizens. At a minimum, the participating governments should partner and collaborate in generating a recommended “Special Purpose” project list.
Because of more than a few examples in recent years of projects not being fully vetted or the citizens not feeling the right projects were delivered, the SPLOST instrument has been tarnished. On Nov. 8th, all of us will choose if the proposed projects are all necessary in these times. Few seem supportive of everything proposed. The success or failure will depend on how each voter weighs the overall good of the total vs. each individual project. The Chamber and its member businesses will continue to support a fair and balanced tax strategy that delivers public services at the most affordable cost.
The Chamber of Commerce and its members are grateful for those who stand up to serve our community. We recognize the sacrifice public service requires. And we will continue to work with all our elected officials for the betterment of our community.
The Great Recession has created tremendous budget pressures for all of our elected bodies. You would assume that this climate would create real desire among our officials to partner and work together. Examples of this have occurred. During the final days of working through the SPLOST referendum decisions, the Whitfield County School Board agreed to postpone placing an ESPLOST on the Nov. 8th ballot in order for the County Commissioners and City Councils to place one thus keeping the current sales tax rate at 6% and not going to 7%.
This action was encouraged by many hoping that the current penny could be maintained for one year to help fund the greatest capital needs of the County Commission and City Councils. And in 2013, our school officials could ask the citizens for a short-term debt focused ESPLOST that would follow the one year SPLOST. Given the County Commission chose a two-year, the county school board now has to seek an ESPLOST that is needed to retire debt with it being an additional one cent at least for one year.
The SPLOST that is being proposed was created haphazardly such that it is the first in our community’s history not to be backed by an intergovernmental agreement specifying the collaboration and agreement by those proposing it.
In many areas, our elected officials work hard to serve us and to make policies that will benefit our community. But in just as many instances, the lack of cooperation and collaboration is creating division between factions and prevents us from reaching our greatest potential.
The Charter Commission is working hard to identify greater ways we can restructure our local government in a way that increases the services we desire and need and provided at the lowest possible cost. And while they are doing their work, our current elected entities can and should work just as hard to understand the role each play and to collaborate in as many areas as possible.
It has been said that businesses don’t vote. But business does pay a very large portion of the property tax burden. As a major funding source for local government services, we not only encourage better cooperation and collaboration, we expect the best of our local officials just as they expect the best of our business community.
Given the commendable work of many local elected officials over the last 15-20 years, we can be proud that our community has over 20 services that are consolidated between our County government and our cities. The Charter Commission, if given the opportunity, could identify further ways we can consolidate public services and reduce duplication. But only if we as citizens and our local officials remain open-minded and committed to doing what is right and not being deterred by past prejudices or biases. When all is said and done, the business tax payer just like the residential taxpayer, simply wants the best public services for the most affordable cost.
In good times and bad, working together usually delivers better results than not working together. So as we face some of the worst economic times our community has faced in decades, and in a time when competition for new investment is as fierce as ever - we should be moving down a convergent path of partnership not a divergent path of isolation.
The Scarcity vs Abundance Mentality
Dr. Stephen Covey coined the terms Scarcity Mentality and Abundance Mentality in his highly acclaimed work – The Seven Habits of Highly Effective People. He says “People with a scarcity mentality tend to see everything in terms of win-lose. There is only so much; and if someone else has it, that means there will be less for me. The more principle-centered we become, the more we develop an abundance mentality, the more we are genuinely happy for the successes, well-being, achievements, recognition, and good fortune of other people. We believe their success adds to...rather than detracts from...our lives.”
It is my opinion that many in our world see the world through a paradigm of scarcity. And those that have lost their jobs or homes (or worse), their view on the world is probably justified. But I would also argue that the resources we have been graciously blessed with have not diminished substantially. We just perceive that resources are becoming scarcer because of the difficult macroeconomic times we live in.
This week, Tom Cunningham, Vice President, Senior Economist, and Regional Executive for the Federal Reserve Bank of Atlanta, spoke at the Dalton Rotary Club. He provided an easy to understand overview of what has happened and what continues to affect us economically. Although his overview of the economic conditions facing our nation were not positive, his explanation was easy to understand and made sense as to why we are not seeing improvements.
Mr. Cunningham described the conditions that caused the financial collapse / crisis, the housing collapse, and the profound unemployment that continues today. He explained the actions of the Federal Reserve Bank that have been implemented to counter the negative economic influences facing the United States. His explanation of the monetary policy tools and the actions taken by the Fed seemed reasonable.
Basically the Fed has used its investment portfolio to stabilize pricing and output as much as possible. And the steps taken have had the desired effects on our US economy. That is the good news. Pricing for goods and services in the US have remained fairly constant throughout the great recession (excluding housing).
The remaining elephant sitting on the chest of the American economy is our pervasive and extremely high unemployment. Mr. Cunningham explained the natural interaction between consumption in the US economy and job growth. Given that over 70% of the US economy is driven by our purchase and consumption of stuff, as we buy / consume more, the companies that produce things expand and hire workers. And as more people are employed, their incomes drastically improve driving even more consumption.
Our current economic situation is not reacting the way a normal recovery might react. Because of how deep the recent recession was and because it lasted a long time, those with jobs still are not consuming like would be normally seen in a recovery. The average US saving rate pre-recession was less than 1%. Today Americans are saving between 7-8% of their income.
Businesses have also invested dramatically in new technology and equipment during the downturn. These investments have led to significant increases in US productivity. An increase in productivity is also an increase in our standard of living. But it also means a company can do more with less people.
Mr. Cunningham also mentioned two other issues that are negatively influencing our economy – the size of our national debt and the uncertainty that US businesses have in regard to tax policies and regulation. The US has to lay out a plan for managing its debt. But Congress and the President must do so without cutting spending so deeply and quickly that the economy takes additional hits. That is a tough balancing act and may signal why no plans have been approved or implemented. Gridlock may be beneficial in these times.
The uncertainty surrounding tax policy and regulations must also be worked out. The future tax rates that are eventually enacted are probably impacting the economy more negatively than the uncertainty that persists today. Most businesses are accustomed to paying taxes and expect to pay their fair share. Congress would be better off developing a tax reform package and implementing it now than ignoring it for another year while our economy drags along.
And finally, a regulation moratorium needs to be enacted until we recover fully from the economic doldrums that are affecting us. No new regulations should be enacted without a full jobs impact study completed. And when we are back on track with more people working, we can revisit those few areas where regulations are needed or existing regulations modified.
Dr. Covey’s Scarcity Mentality was introduced primarily in discussing the interaction between individuals and their relationships with others. Given the conversation around our current economic environment, I would broaden his concept. It is my opinion that the great recession has been so deep and pervasive, we as Americans have developed a crippling Scarcity Mentality. This mentality has created in many an anti-anything outlook. Some are or have been so negatively affected by the last 3-4 years, they have retreated into a glass half empty society.
The America we have always been – optimistic, proud, fearless, confident – is in jeopardy. The policies over the last many years that picked winners and losers, rewarded risky behavior (as long as you did not get caught), incentivized people to get it today without paying for it, have all played into the current national psyche.
Hopefully, some have learned from our past mistakes, and are willing to work diligently in correcting these failed policies. And if we will elect leaders who seek win-win solutions and not win-lose propositions, we can become a nation built on an Abundance Mentality once again.
It is my opinion that many in our world see the world through a paradigm of scarcity. And those that have lost their jobs or homes (or worse), their view on the world is probably justified. But I would also argue that the resources we have been graciously blessed with have not diminished substantially. We just perceive that resources are becoming scarcer because of the difficult macroeconomic times we live in.
This week, Tom Cunningham, Vice President, Senior Economist, and Regional Executive for the Federal Reserve Bank of Atlanta, spoke at the Dalton Rotary Club. He provided an easy to understand overview of what has happened and what continues to affect us economically. Although his overview of the economic conditions facing our nation were not positive, his explanation was easy to understand and made sense as to why we are not seeing improvements.
Mr. Cunningham described the conditions that caused the financial collapse / crisis, the housing collapse, and the profound unemployment that continues today. He explained the actions of the Federal Reserve Bank that have been implemented to counter the negative economic influences facing the United States. His explanation of the monetary policy tools and the actions taken by the Fed seemed reasonable.
Basically the Fed has used its investment portfolio to stabilize pricing and output as much as possible. And the steps taken have had the desired effects on our US economy. That is the good news. Pricing for goods and services in the US have remained fairly constant throughout the great recession (excluding housing).
The remaining elephant sitting on the chest of the American economy is our pervasive and extremely high unemployment. Mr. Cunningham explained the natural interaction between consumption in the US economy and job growth. Given that over 70% of the US economy is driven by our purchase and consumption of stuff, as we buy / consume more, the companies that produce things expand and hire workers. And as more people are employed, their incomes drastically improve driving even more consumption.
Our current economic situation is not reacting the way a normal recovery might react. Because of how deep the recent recession was and because it lasted a long time, those with jobs still are not consuming like would be normally seen in a recovery. The average US saving rate pre-recession was less than 1%. Today Americans are saving between 7-8% of their income.
Businesses have also invested dramatically in new technology and equipment during the downturn. These investments have led to significant increases in US productivity. An increase in productivity is also an increase in our standard of living. But it also means a company can do more with less people.
Mr. Cunningham also mentioned two other issues that are negatively influencing our economy – the size of our national debt and the uncertainty that US businesses have in regard to tax policies and regulation. The US has to lay out a plan for managing its debt. But Congress and the President must do so without cutting spending so deeply and quickly that the economy takes additional hits. That is a tough balancing act and may signal why no plans have been approved or implemented. Gridlock may be beneficial in these times.
The uncertainty surrounding tax policy and regulations must also be worked out. The future tax rates that are eventually enacted are probably impacting the economy more negatively than the uncertainty that persists today. Most businesses are accustomed to paying taxes and expect to pay their fair share. Congress would be better off developing a tax reform package and implementing it now than ignoring it for another year while our economy drags along.
And finally, a regulation moratorium needs to be enacted until we recover fully from the economic doldrums that are affecting us. No new regulations should be enacted without a full jobs impact study completed. And when we are back on track with more people working, we can revisit those few areas where regulations are needed or existing regulations modified.
Dr. Covey’s Scarcity Mentality was introduced primarily in discussing the interaction between individuals and their relationships with others. Given the conversation around our current economic environment, I would broaden his concept. It is my opinion that the great recession has been so deep and pervasive, we as Americans have developed a crippling Scarcity Mentality. This mentality has created in many an anti-anything outlook. Some are or have been so negatively affected by the last 3-4 years, they have retreated into a glass half empty society.
The America we have always been – optimistic, proud, fearless, confident – is in jeopardy. The policies over the last many years that picked winners and losers, rewarded risky behavior (as long as you did not get caught), incentivized people to get it today without paying for it, have all played into the current national psyche.
Hopefully, some have learned from our past mistakes, and are willing to work diligently in correcting these failed policies. And if we will elect leaders who seek win-win solutions and not win-lose propositions, we can become a nation built on an Abundance Mentality once again.
America’s Economic Crisis is also a Faith Crisis
It is the time of year when most Methodists (and maybe other protestant faiths) plan and conduct their annual stewardship campaigns. It is typically a multi-week process of study and reflection on the subjects of generosity, giving, and tithing. In the words of our Senior Pastor, no one really enjoys the season primarily because it involves discussing money. Discussing money is never easy, but it is even more challenging and sensitive given our economic struggles.
I applaud our church and more specifically, our Stewardship Committee, for finding interesting books to study that make the conversation easier and enables the process to become a blessing in and of itself. This year’s campaign is based on the book, Enough, by Adam Hamilton. Pastor Hamilton is the Senior Pastor of the United Methodist Church of the Resurrection in Leawood, Kansas.
In February of 2008, NY Times columnist and noted economist, Paul Krugman, wrote a column, “A Crisis of Faith.” If you read much of Mr. Krugman’s columns, you immediately know that he is not using the word faith in a religious context. But in this particular column, he is discussing the collapse of faith Americans have in our financial institutions. Basically over the last 10-12 years, as different financial instruments have shown to be vulnerable or not credible, the “faith” of the American borrower and investor has been shaken.
It is my belief that our latest economic crisis has created a much broader faith crisis that has become a strangle hold on our nation and in some cases the global market. There has always been some level of distrust in any and all institutions. Our banks, the stock market, every form and level of government, even sports organizations have had moments throughout history that was less than stellar. Scandals come and go …some bigger, more severe, and last longer than others.
Remember Watergate, Enron, Iran-Contra, gas rationing in the seventies, the Savings and Loan crisis? And these are just a few. Why then are our more recent struggles causing so much more insecurity, hardship, distrust, and anger? I am sure the Sociologists, Psychologists, and Historians will study these times exhaustively. But even in the midst of all that is going on some key observations are worth noting.
Although our financial infrastructure in America is far from perfect, for most of our history our banks stood for integrity, honesty, and our currency was backed by the full faith and credit of the United States Government. And our government as a leading world power could back up our currency and al that made America great. Our values, our freedom, our strength (militarily and otherwise), and the esteem others held for us – all gave credence that our money and our word meant something.
Fast forward to the last ten years, and the sub-prime mortgage debacle not only cost Wall Street, our entire banking system, and individuals who borrowed and invested – it shook our entire financial core. Banks failed not because of a few (or many) bad loans, they failed because the culture that brought us sub-prime mortgages indicated that many if not most were willing to throw all caution to the wind and pursue the American Dream built on Affluenza and Credititus.
How can we teach our children that living within our means and saving for the things we want are important values when the US Government has vilified those values for decades? If the full faith and credit of the United States means decades of spending more than you have, and that hard-work isn’t necessary because the latest and greatest entitlement program is just around the corner - why are we shocked when the American Dream is no longer relevant in a global economy.
If Americans are individually affected with Affluenza (the constant need for more and bigger stuff and the resulting effect that this need has on us), a strong argument can be made that our nation also suffers from the same. Because building an economy on fairness, hard-work, and sound principles take to long or prevent us from keeping up with the Joneses. We play fast and free with our free market economy.
We create burdensome regulations that pick winners and losers. We allow (and in some cases encourage) labor unions to artificially inflate the costs of American goods eventually causing US companies to move to other countries. We lower the cost of entrance to home ownership while enslaving our most vulnerable with mortgages they cannot afford for years often ending in complete financial ruin.
Credit has a place in a free market economy. But it must be fairly employed and conservatively utilized. All must borrow only what is reasonable and affordable. And returns on investment must be commensurate with sound financial planning and risks. But if overly extended, government or individual, the consequences touch and weaken all facets of life. Creditus (buying now – paying later) is a second disease caused by Affluenza.
Both Affluenza and Credititus are curable. But just as our culture and our values did not change overnight for the worse, they will not improve any quicker. It has been said that a good crisis should never be wasted. Although these times are extremely painful, we can learn valuable lessons from them. America and many other nations needed an economic day of reckoning. Just as we rebuild property after a devastating hurricane passes, we will need to rebuild our faith and confidence once this economic hurricane passes.
Our grandparents built much of this nation after suffering through the Great Depression. And we along with our children and grandchildren have an obligation to rebuild it once again.
I applaud our church and more specifically, our Stewardship Committee, for finding interesting books to study that make the conversation easier and enables the process to become a blessing in and of itself. This year’s campaign is based on the book, Enough, by Adam Hamilton. Pastor Hamilton is the Senior Pastor of the United Methodist Church of the Resurrection in Leawood, Kansas.
In February of 2008, NY Times columnist and noted economist, Paul Krugman, wrote a column, “A Crisis of Faith.” If you read much of Mr. Krugman’s columns, you immediately know that he is not using the word faith in a religious context. But in this particular column, he is discussing the collapse of faith Americans have in our financial institutions. Basically over the last 10-12 years, as different financial instruments have shown to be vulnerable or not credible, the “faith” of the American borrower and investor has been shaken.
It is my belief that our latest economic crisis has created a much broader faith crisis that has become a strangle hold on our nation and in some cases the global market. There has always been some level of distrust in any and all institutions. Our banks, the stock market, every form and level of government, even sports organizations have had moments throughout history that was less than stellar. Scandals come and go …some bigger, more severe, and last longer than others.
Remember Watergate, Enron, Iran-Contra, gas rationing in the seventies, the Savings and Loan crisis? And these are just a few. Why then are our more recent struggles causing so much more insecurity, hardship, distrust, and anger? I am sure the Sociologists, Psychologists, and Historians will study these times exhaustively. But even in the midst of all that is going on some key observations are worth noting.
Although our financial infrastructure in America is far from perfect, for most of our history our banks stood for integrity, honesty, and our currency was backed by the full faith and credit of the United States Government. And our government as a leading world power could back up our currency and al that made America great. Our values, our freedom, our strength (militarily and otherwise), and the esteem others held for us – all gave credence that our money and our word meant something.
Fast forward to the last ten years, and the sub-prime mortgage debacle not only cost Wall Street, our entire banking system, and individuals who borrowed and invested – it shook our entire financial core. Banks failed not because of a few (or many) bad loans, they failed because the culture that brought us sub-prime mortgages indicated that many if not most were willing to throw all caution to the wind and pursue the American Dream built on Affluenza and Credititus.
How can we teach our children that living within our means and saving for the things we want are important values when the US Government has vilified those values for decades? If the full faith and credit of the United States means decades of spending more than you have, and that hard-work isn’t necessary because the latest and greatest entitlement program is just around the corner - why are we shocked when the American Dream is no longer relevant in a global economy.
If Americans are individually affected with Affluenza (the constant need for more and bigger stuff and the resulting effect that this need has on us), a strong argument can be made that our nation also suffers from the same. Because building an economy on fairness, hard-work, and sound principles take to long or prevent us from keeping up with the Joneses. We play fast and free with our free market economy.
We create burdensome regulations that pick winners and losers. We allow (and in some cases encourage) labor unions to artificially inflate the costs of American goods eventually causing US companies to move to other countries. We lower the cost of entrance to home ownership while enslaving our most vulnerable with mortgages they cannot afford for years often ending in complete financial ruin.
Credit has a place in a free market economy. But it must be fairly employed and conservatively utilized. All must borrow only what is reasonable and affordable. And returns on investment must be commensurate with sound financial planning and risks. But if overly extended, government or individual, the consequences touch and weaken all facets of life. Creditus (buying now – paying later) is a second disease caused by Affluenza.
Both Affluenza and Credititus are curable. But just as our culture and our values did not change overnight for the worse, they will not improve any quicker. It has been said that a good crisis should never be wasted. Although these times are extremely painful, we can learn valuable lessons from them. America and many other nations needed an economic day of reckoning. Just as we rebuild property after a devastating hurricane passes, we will need to rebuild our faith and confidence once this economic hurricane passes.
Our grandparents built much of this nation after suffering through the Great Depression. And we along with our children and grandchildren have an obligation to rebuild it once again.
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