Back Home in Whose Indiana?

Two articles have come across my laptop screen in the past week that reminded me of the old observation that what you see depends on where you sit.

Morton Marcus’ “Eye on the Pie” column stuck basically to statistics, sharing data that suggests our state is not faring well economically. Private sector jobs remain stubbornly below pre-recession levels, despite growth in population; and although wages are up, they aren’t up enough to have kept pace with inflation, so real wages (buying power) actually declined in all but five metropolitan areas.

The result is that the average Hoosier has $30 less a week than she had six years ago.

The job picture is similarly uneven.  Elkhart-Goshen has lost 8.8% or 10,600 jobs; Michigan City-LaPorte is off 4,400 jobs, or 11.2%.

In the Northwest Indiana Times, Rick James focused on the contrast between Indiana lawmakers’ solicitude for business and our abysmal social safety record.  Indiana is 45th among the states in infant mortality–more babies die here before their first birthday than in 44 other states. Public school teachers have been under relentless attack for deficiencies in our education system, despite the fact that our problems are systemic, complex and frequently exacerbated by clueless ideologues at the statehouse.

As James notes,

“Pence can boast about the business climate. He can also talk about the $2 billion the state has in the bank while babies are dying, roads are crumbling and schools are cutting staff and programs because of lack of funding. That, my friends, is Honest to Goodness Indiana.”

The evidence demonstrates rather forcefully that being a low-tax, “right to work” state has failed to create jobs or contribute to prosperity. To the contrary, our obsession with tax-cutting has degraded the quality of life that–according to research–is what actually attracts new businesses and residents.

Meanwhile, our political spin-doctors continue their “happy talk.”

I don’t know what state the administration flacks who issue those glowing media releases live in, but the rest of us would sure appreciate getting directions to that Indiana.

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Spring in the Hood

It’s spring. Finally!  Friday, I took the day off from the treadmill at NIFS in favor of a walk around my neighborhood–the Old Northside in downtown Indianapolis–and was reminded why I love living downtown.

I used to live in the suburbs. I’m sure my neighbors were nice people, but in the ten plus years I lived in my house, I never met any of them. We’d wave as we turned into our driveways, and a few had children the ages of mine and the kids played together, but that was the sum total of our interactions. The houses were separated by large lots, and we didn’t have sidewalks to stroll, or front porches to sit on, so those venues for conviviality were missing.

Friday, I walked (on sidewalks) to one of the many restaurant/bars within walking distance of my house, to meet my husband for dinner. The scale of the neighborhood is pleasant, with small but adequate lots, and at least a third of the houses I passed are owned by people I know. Several were outside– doing lawn work or just enjoying the beautiful day– and we exchanged greetings as I walked by.

Ours is a pretty diverse neighborhood  (my own short block has whites, blacks,  Latinos, straights and gays) and for most of us, that’s one of its attractions.  A significant number of the houses I walked past still have yard signs demanding the defeat of HJR 3, (the anti-same-sex marriage amendment) despite the fact that the legislative session is over.

One friend, who calls the restoration of his historic house his “100-year-project,”  handed me a tulip from his garden. At the next intersection, I stopped to chat with a lawyer I know (he was picking up dog poop in his meticulously-cared for small yard).

I turned down Alabama Street, and about halfway to my destination saw a University colleague on her front porch with three other neighbors; they were having drinks and snacks and invited me to join them. It was clearly cocktail hour somewhere, so I did; we talked work and politics and waved at other neighbors who passed by, and then I walked on to meet my husband.

Saturday was another beautiful day, and I was out for another walk (my fitbit is a stern taskmaster). I ran into my son, daughter-in-law and grandchildren out for a bike ride. They live in the neighborhood too, and were headed for the Monon Trail that runs a half-block behind my house.

I know that there are people who value having acres of land, who treasure their solitude, are irritated by serendipitous encounters, and who don’t mind driving six miles for a loaf of bread. To each his own. But I absolutely treasure these everyday pleasures of urban life.

Urban neighborhoods–with sidewalks that actually go somewhere–build social capital and connect us to others.

With all due respect, I don’t think those gated communities with their “McMansions” on acre lots do that.

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Don’t Say You Weren’t Warned

Yesterday’s IBJ had an article about an all-electric car sharing program being promoted by Mayor Ballard.

I like the car-sharing idea a lot. However, as the article noted, the biggest expense of launching it will be what the city will have to pay ParkIndy–the private consortium that manages the city’s parking meters.

Our “deal” with the vendor, if you will recall, requires the city to pay the contractor every time we take a parking meter out of service, either permanently or temporarily. The city has already had to fork over a considerable amount to compensate the vendor for temporary blocking of curb lanes due to construction projects.

The vehicles and charging stations for the car-sharing program will take space currently occupied by parking meters. When the car-sharing program is fully implemented, the IBJ reports that the city will have paid ParkIndy 16.9 million dollars in order to use our own curb lanes.

That hurdle may doom the project.

There were two major objections to outsourcing the city’s parking infrastructure: 1) the private operator’s profit significantly reduces the amount the city could have realized had it managed its own meters; and 2) there would be unanticipated costs and problems associated with giving up control of the city’s curb lanes.

I see chickens coming home to roost.

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Been There, Done That, It’s Not Quite So Simple….

In a recent post to Inforefront.com, Chris Cotterill plows some well-tilled ground, essentially pooh-poohing the notion that cities and towns need more taxing authority in order to provide a decent level of municipal services.

We just need to do more with less. It’s a tired trope.

Some of his recommendations are reasonable–consolidated purchasing and maintenance operations, for example. Some aren’t: outsourcing or outright sale of city functions (the “holy grail” of those who believe that the private sector can provide services more efficiently no matter what the nature of the service–a belief not supported by the evidence); a hiring freeze (several city departments are already headed for “decimated” status), the exclusion of spouses from healthcare coverage (you think it’s hard to get good employees now?), and outsourcing operations of golf courses (because that worked so well during the Goldsmith Administration).

These recommendations have been around–and many of them implemented–since I served in the Hudnut Administration. The problem is, even if they all worked as Cotterill thinks they would, they wouldn’t begin to generate savings sufficient to address the problems we face.

Of course, there are some major improvements that might generate substantial savings–although they didn’t make Cotterill’s list. The Kernan-Shepard report identified the incredibly wasteful Trustee system; and I’ve argued before for consolidation of the eleven school districts in Marion County that collectively serve fewer students than IPS used to enroll. Unfortunately, we not only lack the political will to make those changes, our antiquated taxing system–with its dedicated funds–wouldn’t allow those savings to be used where they are most needed.

Should government services be delivered efficiently? Of course. Are some local government priorities misguided? Yep. Will addressing either of those issues solve the very real problems facing our underfunded local government units? In your dreams.

Mayor Ballard defended the recent deal with the Pacers by pointing out that the money going to the CIB can’t be used for other things, like police. That’s true–and it’s a far bigger problem than a lack of consolidated purchasing.

We need meaningful home rule, and the ability to allocate tax revenues to our most pressing problems. Giving local government actual authority over its own decisions would also improve transparency and allow citizens to hold local lawmakers accountable.

Of course, our arrogant overlords at the General Assembly are unlikely to agree.

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Welcome to the Oligarchy

A study that will appear in the Fall 2014 issue of Perspectives on Politics, a very highly regarded academic journal, concludes that the U.S. is no longer a democracy. Instead, we have become an oligarchy, and a pretty corrupt one at that.

“Despite the seemingly strong empirical support in previous studies for theories of majoritarian democracy, our analyses suggest that majorities of the American public actually have little influence over the policies our government adopts.”

The study provides pretty conclusive evidence that the US government does not represent the interests of the majority of our country’s citizens, but is instead ruled by the rich and powerful. As the Telegraph reports:

After sifting through nearly 1,800 US policies enacted in that period and comparing them to the expressed preferences of average Americans (50th percentile of income), affluent Americans (90th percentile) and large special interests groups, researchers concluded that the United States is dominated by its economic elite.  

That domination helps to explain another recent study, this one by French Economist Gabriel Zucman.  Zucman looked at international data on what economists call investment positions (each country reports its assets abroad and foreign-owned assets at home). He found that the numbers don’t add up: globally, according to the reports, liabilities substantially outnumbered assets. But that’s mathematically impossible.

Zucman investigated further; He eventually concluded that the only way to explain such a result is if a lot of money is run through offshore havens, and the ownership doesn’t show up in any country’s national statistics. 

Zucman estimates that the world’s wealthy are using tax havens, including Swiss banks, to hide at least $4.5 trillion but more likely $6 trillion from the tax collectors. That’s $6,000,000,000,000—close to six percent of the entire world’s gross economic output for one year. In other words, as one pundit noted, not chickenfeed.

Not only are we being governed by wealthy oligarchs, for all intents and purposes–they aren’t even beneficent oligarchs. What’s ours is theirs, what’s theirs is theirs–and they aren’t sharing.

Welcome to our brave new global economy. The American republic was nice while it lasted.

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