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Wednesday, November 18, 2009

The Perpetual Challenge of Modern Government

"This challenge requires that government finally master a delicate balancing act between opportunity and security -- between growth and fairness. To grow, a democratic capitalist economy requires strong economic incentives for investment, including low taxes and minimum regulation. To be fair, it must provide some goods and services to those who cannot provide for themselves, which will inevitably take resources away from growth. Enacting too much social spending is a cruel policy, not a humane one, because it weakens the system's capacity to serve everyone. . . It is fashionable to say that communism and socialism have been discredited. But they will not be completely discredited until government overcomes its tendency to ignore the simple fact that too much social spending saps an economy's ability to produce the funds necessary to finance the social programs."

Richard Nixon, Beyond Peace, 1994.

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Saturday, November 14, 2009

The Elephant in the Room.

Unfortunately, I'm not talking about the Republican elephant. While the elephant I'm talking about involves politics, this is not a political topic, but something that is happening in our own communities.

The elephant that is sitting in the room that we seem to be ignoring is that serious financial stress and a large hunger gap are infiltrating middle-class Minnesota and America. I've referred previously to the newly poor and the anxious middle class as a voting class. I have not, however, discussed this ballooning event as it is occurring in our own neighborhoods and right in front of our eyes. We have all been hearing the news for a while about extending benefits for the growing number of unemployed, food insecurity and overall increased poverty. Hunger is often associated with inner cities and third world countries, making it difficult to admit that it is prevalent in our own backyard.

A run of recent encounters triggered me to turn and point at the elephant in our own community living room to help us accept responsibility for addressing this challenge. First, the findings released from the annual Hormel Foods survey on hunger. This study found that 24% of US adults reported eating less this year so that kids had enough to eat. More profound from a community perspective, 38% indicated that they would be uncomfortable asking for food donations. People are much more likely to admit that they lost their job than admitting that they need food assistance.

Next, a recent conversation disclosed that in my local community, the waiting list for the homeless shelter and the overall grocery bill for the food shelves continues to increase at a record pace. Remember, these are the people that are asking for help. With no effort, I quickly recalled multiple family members, friends or clients that have have been laid off, had hours cut or are just simply struggling to figure out how to get by. I imagine anyone reading this can do the same. Finally, the demand for low-income legal assistance has more than doubled this year. I fear that perhaps we are just seeing the proverbial tip of the iceberg.

At the state level, we have a shortfall of 125 million meals per year and the twin cities is reporting over 100% increased demand in their food shelves. At the national level, the United States Department of Agriculture recently released its 2008 Household Food Security Report. 14.6% of US households are categorized as "food insecure", the highest number since the report began in 1995. This nation-wide hunger gap is described as "historic", yet only covers the 2008 time frame, the early stages of the current economic downturn. At the world level, our population continues with its exponential growth, with a threatened repeat of increased prices that caused food riots and governments to collapse.

While we do have a very effective delivery system in place, we must recognize that this societal challenge will not only strain, but may cause the delivery system to break down. Not only state and county government (the primary oars for safety net delivery); but also our local churches, non-profits and school districts are already feeling the pinch. Another recent report by Share our Strength, discloses that one in four children in America face hunger challenges, many in middle-class communities. Schools are described as "a critical safety net" against hunger among students.

These stories and reports are likely a whisper of what is yet to come.

Our solution to this challenge during a prolonged recovery on main street should not rely on crossing our collective fingers and waiting for the hyper-political wheels of Washington D.C. or St. Paul. Instead, we must lead at a local level to do what we do best -- adapt and work together as a community, state and country. We must challenge all organizations, governments and school districts to dramatically rethink how they fill (and pay for) this role. Difficult decisions need to be made as to who is entitled to help, and more importantly, how much help.

The answer is not to add new government programs, but to leverage, prioritize and strengthen the one's we already have. As leadership communities, we can set examples for other communities to follow. We should be part of the solution, not join the chorus of professional victims.

To meet this challenge, there must be a re-focusing of resources on basic institutional roles. To begin, a clear distinction must be drawn between the safety-net intended to keep people from falling into true poverty, and the entitlement mentality that clearly permeates current policy decisions. We must demand that these delivery institutions prioritize to keep the bottom from falling out and help people weather the storm and quickly return to self-reliance.

When working with clients, I often try to put their life challenges in perspective. Too often lately, I've found myself saying these words, "Remember, it may get worse before it gets better." Reality, with light at the end of the tunnel. Together, we should face the reality that it may get worse before it gets better -- that's the elephant in the room.

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Wednesday, November 11, 2009

It's Still the Economy

Political propaganda aside, the economy is very fragile right now. Two extreme political views (government is the answer v. tax-cuts) are driving the dialogue already looking towards the next election. An editorial explaining this counter-productive process appears in today's Financial Times and is a good read.

There continues to be a huge middle ground of common-sense that is not being explored. Until common-sense prevails, main street will struggle.

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