Since the 1960s, Duluth-Superior has seldom been uttered in the same breath as “prosperity,” so residents have grown not to expect much beyond inherent natural beauty and the clean, safe environment. But today’s challenge is much more difficult than usual, thanks to debilitating policies promoted by the Bush administration.
While corporate executives floated to soft landings beneath their golden parachutes:
- 1,900 residents of St. Louis and Douglas counties lost their jobs from January through November, about 1.4 percent of the workforce.
- 7 percent of Duluthians had no jobs in November, according to the latest figures, the highest rate in nearly five years.
Meanwhile:
- Minnesota’s jobless rate climbed to 6.4 percent – double the 3.2 percent when Bush was inaugurated in January 2001.
- Wisconsin’s rate was 5.6 percent compared with 3.7 percent when Bush took office.
Pain regionally and nationwide was triggered by federal decisions designed to generate baskets of money for people just like Bush—those who benefit when government turns its back on long-standing lending and investment regulations. When the house of cards finally toppled, even the wealthy couldn’t recover their losses, forcing Washington to bail out their best campaign contributors.
Dangerously dumbIf lies were money, George Bush would have become the world’s richest man instead of an icon for blissful ineptitude and failure.
While combining free market nonsense with delusions of grandeur, he dragged America out of the fast lane straight into a gaping sinkhole that’s devouring middle class dreams from Pennsylvania Avenue to Skyline Parkway.
According to MSN Money, his presidency cost the country about $11.5 trillion. In contrast, the United States had a $150 billion surplus when President Bill Clinton left office.
Nobody escaped the financial trauma inflicted by the unnecessary $3 trillion Iraq war and multi-billion-dollar bailouts designed to salvage irresponsible Wall Street banks and brokers. Each of us has a story.
About the time Bush Too was elected, I covered northwestern Wisconsin as a business reporter. My stories focused on an overheated economy. Resorts and restaurants from Hayward to Grand Marais were hiring foreign students because full employment had created a shortage of local workers. Fast food joints were paying a couple bucks over minimum wage just to cover their shifts. Property values, particularly for lake parcels, were climbing out of sight. Times were good, but much has changed.
Like many others, my earnings today have declined versus 2001, considering inflation. Like society’s aspirations, journalism and the quest for truth stumbled badly during the Bush presidency, tripped by years of top-level skullduggery that threatened freedom and privacy. The raging economy has been replaced by raging unemployment, record profits by record foreclosures.
Even worse, most educated people, including President Barack Obama, say the worst is yet to come.
My mailbox in December contained a letter from Wells Fargo that illustrates how Bush and his reckless advisors infected the worlds of government and business.
“In a recent account review, we noticed that you have not used your line of credit…for over a year. Since your account was inactive…it has been closed,” wrote corporate vice president Richard Nelson.
His words reflect a rather strange arrogance, considering that Uncle Sam invested $25 billion in Wells Fargo to ensure customers would continue to receive credit. But hubris and corporate handouts walked hand-in-hand during the Bush years – at least for the president’s friends. Firms like Blackwater and Halliburton exhibited both traits with impunity, so why not financial institutions?
Supported by the Troubled Assets Relief Program (“The Bailout”), Wells Fargo followed the most troubling path, purchasing Wachovia Corp., which was choking on toxic investments. The purchase nudged Wells Fargo closer to becoming the nation’s largest bank, increasing its corporate stature. But the investment hasn’t impressed stockholders. Trading at $44.30 on Sept. 19, the bank’s stock price has fallen to the $18-$19 range, contributing to its new credit conservatism. The stated intent of TARP, however, was to loosen credit and spark rebounds in the ailing real estate and automotive sectors.
Lies and damned liesSo far, $350 billion in TARP money has flowed from taxpayers to big business with few strings attached, and without any meaningful administrative restraint.
The inattentive gatekeepers included Treasury Secretary Henry Paulson, the TARP czar unhindered by traditional inconveniences such as congressional oversight, and also the Fed, which has refused to reveal which companies are receiving TARP welfare. But accountability was never important to Bush or his ilk, as Americans learned when weapons of mass destruction were never found in Iraq and torture was secretly sanctioned in Abu Ghraib. Nobody in Washington was ever deemed responsible. Quite the opposite, in fact. Recall that Bush praised Donald Rumsfeld even as the outgoing defense secretary resigned in obvious disgrace.
The fallout, unfortunately, is landing everywhere. Local residents have lost millions in their retirement accounts as stock prices precipitously decline. That forces retirees to spend less at malls, grocery stores, car lots and other places that provide jobs for working age residents. Food shelves are suffering from fewer donations, and the same can be said of other charities that support poor and homeless people throughout the Twin Ports.
Meanwhile, joblessness and uncertainty have convinced many that now isn’t the time to change homes or buy new vehicles. Even those who are still employed fear the recession could deepen, and their instinct is to spend less.
That’s grim news in a metro that was on the rebound. Residential construction in Duluth-Superior has stopped, with some new condo and townhome units sitting unoccupied for months. Talk has ceased about the potential Murphy Oil refinery expansion, as the possibility of finding a multi-billion-dollar private investor has virtually disappeared. Even a downtown walk along Superior Street reflects the downturn, the Athletic Club Deli being the latest victim.
It’s bad enough that some presidents – Richard Nixon, Jimmy Carter, Gerald Ford – didn’t live up to expectations. George W. Bush, however, whipped America into a tailspin from which we may not recover. At the very least, our offspring will be paying the price for decades, and have nothing to show for it.
Published in the Jan. 23, 2009, Northland Reader
Author Ron Brochu archives his stories at www.ronbrochublog.com, where your comment is encouraged.