Our Southern Cousins

OUR SOUTHERN COUSINS

Lately, I have been frequently drawn back to thoughts about our Mexican cousins to the south.  I am somewhat distraught over the thought that we (North Americans) may be getting it only half right.

Why are we trying to put the proverbial cat back in the bag with just a "build a bigger wall" (with aggressive deportation) policy towards Mexico?  As Minnesotans, we should have no ax to grind with Mexico.  We get along with Canada, Wisconsin and even Iowa well enough.  Of course, the reactionary response to this argument will be that our local, North American neighbors are different.  They are not, many might argue, “exporting low-wage, un-educated families trying to steal our jobs and welfare.” 

Yet, this isolationist-based response can form the foundation for a better policy towards Mexico.  The reason we have only a joke-based competition with Iowa is that Iowa has a successful and diversified economy. Their comparable success creates a porous border that allows an easy exchange of goods, services and people.

The Mexican economy, while growing, continues to leave many families struggling to get by.  Income and opportunity disparities, no matter where they occur, make people wonder if the grass isn’t greener ‘on the other side’.   Mexicans generally leave their Country for the same reason most people have migrated to Minnesota -- in search of a better life for their families.  If more Mexicans had the hope of a better life in Mexico, would they put as much at risk by attempting to eke out a life in a foreign county?  I think not.

The recent amnesty action by President Obama, like the build a bigger wall policy before it, only provides a temporary band-aide.  Instead, we must think long-term and consider ways to strengthen Mexico’s already impressive successes.

Our immigration system will remain broken so long as we think we can "fix" Mexico by making it harder for their citizens to come here legally.  Why are we building a wall without gates for workers, while at the same time encouraging the open exchange of goods and services?  I for one want a process that provides a respectful and controlled entrance for goods, services and people.  Soon, we will be inviting workers to our State to backfill the gap left by the retiring boomers.  The sooner we plan for this need, the better we will be. It is for this reason that the Minnesota Chamber of Commerce and other business leaders have been calling for immigration reform for years.

The Mexican economy already ranks as one of Latin Americas strongest economies.  One futurist even predicts that Mexico will one day be one of the major economic powers in the world.  Why would we harbor hostility towards a democratic country with a population that exceeds most European nations? An increasingly industrialized Mexico together with a stronger, more accessible middle-class would certainly boost our economy by providing increased demand for our goods and services.

I hope that our state and national leaders can move beyond the easy rhetoric and develop a coherent and long term plan to support Mexico’s growth.  In the meantime, I hope our own local communities will continue to move beyond the talking points and welcome all who want to pursue their version of the American Dream --including our cousins from Canada, Mexico and yes -- even Iowa.

Matt Benda.

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It's a horse race... Why the Iowa Caucuses matter!

What a great opportunity to see the presidential political process up close and personal. The first in the nation Iowa Caucus process is set for next Tuesday night, starting at 7:00 pm. In every county in Iowa, registered Republicans can vote for their selected candidate for President. For a summary of the actual procedure, click here.

President Obama has no challenger and therefore the Democratic caucus in Iowa becomes a non-event, except for the President's ability to show strength.

The Republican candidates, however, are posturing for proper recognition in the first official step toward endorsement. I say "posturing" because meeting expectations is usually more important than actually winning. For example, in the 2008 Iowa Caucus, Mitt Romney set high expectations and worked hard in Iowa. In the end, however, Romney lost the vote to Mike Huckabee, which cost him substantial momentum and ended in a McCain endorsement.

The Iowa Caucus starts the January process of picking a Republican Presidential candidate. Iowa is followed by the New Hampshire primary on January 10th, South Carolina Primary on January 21st and the Florida Primary on January 31st.

In Minnesota, we get our first official taste of Presidential Politics on February 7th, when all caucus attendees participate in a non-binding straw poll. Minnesota will get its final taste of Presidential politics on May 4th and 5th when we select our delegates to the GOP national convention (Tampa Bay, Florida in August)

For a pretty good calendar showing this timeline, click here.

As for the horse race, it all started on August 13th, with a straw poll of Republican activists who picked Mn. Congresswoman Bachmann as their top pick by 28.6%. Our other native candidate, Tim Pawlenty, lost the expectations game by finishing third with 13.6%. The front runner status then went to various candidates such as Herman Cain, Newt Ginrich and Ron Paul, with Mitt Romney staying always in the top tier. A home stretch surge is now in play from Texas Governor Perry and former Pennsylvania Senator Santorum.

Why should all of this matter for Minnesotans? For starters, it is just good information. We have great local media coverage, such as local KIMT coverage and interviews with each candidate. SIDENOTE: I am appearing as a guest on the KIMT caucus coverage on Tuesday night's program. Watch the 10 pm broadcast to see how I do.

In addition, nearly every magazine, newspaper and the entire blogosphere have intense coverage on the candidates' positions on issues. This is much different than the sound bite coverage that we normally see. Moreover, in a country that trends to the coasts, it is a rare opportunity to see the candidates through a mid-western lens.

Tuesday night, all eyes will be on Iowa to see the latest leg of the presidential selection process. While many will groan about the election starting too early, it is the process we have in front of us. I for one encourage everyone to take a look at the candidates -- you will see a lot of them in the months ahead -- but not this good of a look.

Building On Our Community Strengths

Economic uncertainty continues to permeate our daily lives. The European debt crisis continues to ebb and flow towards possible meltdown; unemployment continues to be persistently high; and our local tax burden continues to escalate.

In spite of these dark clouds, our community remains strong and perhaps even optimistic. We are, of course, good Minnesotans – we complain about the weather and moan about politicians not getting the job done. Yet, we will never fall to the level of feeling sorry for ourselves. We remain vexed over our failure to capitalize on our proximity to two major interstates. Yet, an outsider will face our wrath if they even suggest that we are a depressed community or that we cannot land that one big employer. Loving our community is simple and natural. George Friedman article.

Beyond this unfailing community pride, we also are blessed with a good community work ethic and a strong sense of community connectedness. These community intangibles are rarely quantified and are hard to define -- with the Blue Zone exception which improved the vitality, life expectancy, and social engagement of the Albert Lea community. As a community, we should continue to promote these intangibles.

Please consider a few other community strengths that we should foster.

INFRASTRUCTURE

A healthy, skilled and educated workforce makes our community attractive to economic growth and makes our neighbors happier. A happy neighbor makes for a stronger neighborhood. We must continue to make Albert Lea a place where people want to live, work, play and raise a family.

Education from pre-school through skill training is present in our community and should continue to be a top priority.

Good roads, clean water, quality homes and good commercial properties for business growth are necessary if we want to succeed. Our housing stock is probably too aged and needs to be strengthened and prepared for expansion. We must also remind our local leaders that investments in community infrastructure cannot be sacrificed under the banner of tight budgets.

We should also demand better outcomes from our local government. Do we need City Hall and a Government Center to take care of just over 30,000 people that live in our county? Sharing services continues to be the latest buzzword, but is not enough to strengthen our community in the long run. Local government needs to be completely reinvented to meet the needs of its citizens.

COMMUNITY WEALTH

Growth of community wealth is also crucial to our future success. We need businesses and individuals who are willing to create new jobs, increase our tax base and generously contribute to community causes. As explained in a recent article by the Center for Rural Affairs, “Wealth must be spread around in many hands to do much good.”

We must resist the trend towards relying on government to provide for our community needs. A strong tax base is imperative to our success, but a “soak the rich” culture will certainly stall all community momentum. We must advocate for local, state and federal policies that encourage investment in our communities and allow for new wealth to be generated. We should fight to keep more of our wealth at home from the start, not to be diverted through bureaucratic processes that politicize outcomes and then “trickle back” to us as a government program.

It is glamorous to pursue the American Dream, but too often lately, those that start to realize this dream are treated as villains. As a community, we should be able to openly advocate for the increased availability of capital and the growth of wealth.

FOSTER OUR ECONOMIC DRIVER: AGRICULTURE

When I graduated from law school, some of my counterparts suggested that I would never succeed if I called myself an “agricultural lawyer.” Their argument was that this label was too narrow and there would be no business to be found. Fortunately, I did not heed this advice and now I am proud to be part of the ag-based economic growth engine.

A recent study by the Economic Research Service (“ERS”) -- and the University of Minnesota predicts demand for agricultural products will grow by 70% to 100% by 2050 due to population growth, energy demands and increased incomes in developing countries. We are on the front line of this trend with a strong agriculture-based economy; a proven track record of providing high quality further processed foods and biofuels; and of course, we are at the intersection of two main interstates.

SUPPORT OUR LOCAL SAFETY NET

Our new residents must feel welcome and receive local support. We should continue to strengthen our own local agency providers such as the United Way, Youth for Christ and our local churches. Today’s food shelf recipient can easily be tomorrow’s new hard working employee. This month’s rental assistance recipient is likely to be next year’s newest entrepreneur. This is the American way – we help our own and they help us in return.

This American upward mobility was once explained by Abe Lincoln, “The prudent, penniless beginner in the world, labors for wages awhile, saves a surplus with which to buy tools or land for himself; then labors on his own account another while, and at length hires another new beginner to help him.”

All of these tangible and intangibles strengths are already present in our community. In face of certain continued economic challenges, we must be vigilant in pushing these topics to the forefront of public dialogue. The decisions that we make now will certainly empower us to succeed in the future.

Matt Benda is an Albert Lea Attorney, community advocate and life-time member of the Republican Party.

Deficit Issues Take Center Stage in D.C.

Deficit Issues Take Center Stage In D.C.

Recent current event discussions have revolved around the looming budget deficit on the international, national and state levels. In the past week, the activities in D.C. have been particularly interesting in their attempts to address the deficit. As one commentator noted,

"The problem is that the debt is like a cancer. The bigger it grows the more threatening it is. Pretty soon it consumes its host (think interest expense)...

Yes, the US can go longer than we might think, but there is a limit. I think that limit will come before the middle of this decade. Perhaps as early as 2013, if the new incoming President and Congress do not deal with the deficit in a realistic manner. Then Bang! , we have our own Greek moment. I want to avoid that."

Read John Mauldin's recent post on the "Plight of the Working Class" here. Keep this possible "BANG!" in mind while watching these issues in the news:

1. Government shutdown looming

The President and Republican leaders appear to be unable to avoid the politics of politics in reaching a budget deal. Interestingly, I just received a fundraising request letter from President Obama (truth moment -- I am a member of the Sierra Club, who must assume that I support the National Democratic National Committee, along with various left-leaning organizations which seem to mysteriously keep getting my name and mailing address). Of interest is one of the President's statements,

"We will never win the future if we're buried under a mountain of debt. All across the country, families sacrifice to live within their means. You deserve a government that does the same, and you're going to see the federal government take responsibility for its deficits by investing in those things that strengthen our country and cutting those that don't"

Interestingly, this quote could come from any moderate Republican or Democrat and even most tea party supporters. Unfortunately, agreeing on rhetoric is not same as getting a bill passed. Tomorrow (Wednesday) is the deadline to agree to a compromise plan to keep government operating. Otherwise, the US House seems likely to take action on another short-term budget fix, leaving the Senate and the President to decide if they want to avoid a shut-down.

2. Wisconsin Representative Paul Ryan introduces long-term budget Proposal.

In the midst of the shut-down drama, the US House budget Chair (Ryan (R) Wisconsin) has proposed a sweeping budget reform bill -- cutting $6.2 TRILLION. As articulated by Ryan,

"For too long Washington has not been honest with the American people," he said. "Washington has been making empty promises."

The federal government's current fiscal trajectory "is simply not sustainable," he warned, saying it will lead to an "economic collapse" and a "diminished future." In contrast, "our goal here is to leave our children and our grandchildren with a debt-free nation," he said. It is a "moral imperative."

Ryan proposes a radical overhaul of the Medicare and Medicaid entitlement programs. To simplify dramatically, the Medicare proposal will not affect any one's eligibility if they are age 55 or older, but thereafter the program will be converted to a system that reimburses seniors based on their ability to pay. The Medicare proposal for the disabled and poor will be converted to State Control at the local level.

This proposal will certainly create a strong dialogue on the need for long-term restructuring. Too often, politicians use scare tactics to get elected -- such as agitating the Senior voting base into the belief that their medicare or social security will be taken away. Given the current climate of concern over deficits, Congressman Ryan's timing is perfect to initiate a serious dialog.

3. Walz' "gotcha" gamesmanship backfires.

Last Friday, our own Congressman Walz entered into the budget game with an attempted surprise amendment to withhold Congressional pay during a government shutdown. Unfortunately for Walz, just days earlier the Obama Administration had written a letter to the Senate labeling this action as "patently unconstitutional." A Washington Post article summarized it well describing the Walz waltz as follows: "In Surprise for Democrats, procedural move on no pay bill backfires."

As I've said many times, Tim Walz is no Blue Dog (Conservative Democrat). His recent (and historical) voting record and consistent tendency towards "causes" rather than "results" earn him a "time to pack" label.

That's all for now -- certainly happy that spring has finally arrived! Have a great week.

____________________________________

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Knocking on Inflations' Door?

Inflation is a rise in the level of prices of goods and services in an economy over a period of time.

Food prices increased 3.9% in Febuary, the largest single month increase in 36 years. Likewise, the producer price index (wholesale g00ds) is also increasing -- 1.6% last month, which translates to 19.2% for the year. The decimation of the Japanese supply line will also continue to add to the cost of electronics and tools.

Also of interest is the expected trends in rental demand and rates. Rental supply is flat while demand continues to increase. There are predictions of a 10% increase in rental rates in some cities. As explained in a recent article:

There will be an envelope of two or three years," said Macke, "when the rise in
demand for rentals will exceed the industry's ability to meet it." Plus,
Alford added, "there's been a shift in the American Dream. We're learning from
our surveys that a huge proportion of people are choosing to rent."

They've experienced the downsides of homeownership -- or seen friends
and family suffer -- and don't want to take the risks or pay the higher costs of
homeownership.

Time will tell whether Greater Minnesota will see a continued increase in demand and rates, but the trend seems to be heading in the direction of tightening supply and higher rental rates.

Flat wages and increased cost of living is never an attractive prospect, but one that may be coming. This will be a good year to implement a long-term planning and tight budget control. Our local leaders also need to fix their balance sheets to control debt and cash flow.

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Turf Wars Threaten to Block Reform

Governor Mark Dayton has certainly perfected the political art of pitting groups against each other in pursuit of his agenda. Consider the following messages from our Governor:

1. Income Warfare = “tax the rich”

2. Regional Warfare = mayors versus legislators;

3. Worker Warfare = public employees v. private employees; and

4. Class Warfare = keep telling people they are poor and the job providers are too rich.

It appears that the Governor is determined to protect the status quo (and his campaign funding sources) in blocking any real reform of State government.

This “us versus them” mentality is destructive and will not solve our long-term woes. We (Minnesotans) are in this mess together and need to solve it together.

The next few weeks, the Senate and House will be making agonizing decisions to right size and reform State Government. Resist the “us versus them” temptation and remember that our elected officials have a duty to work for all of us.

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THE TOUGH DECISIONS ARE YET TO COME FOR MINNESOTA

I must admit that I appreciate the forthright approach taken recently by Governor Mark Dayton when he expressed his dismay over the “devastating cuts” that could be placed upon the poorest Minnesotans. The process of balancing the current budget deficit will not be easy, especially when aggressive political posturing is in play. The Profit Isaiah told us to share our food with the hungry, open our homes to the homeless and give clothes to those who have nothing to wear.

No one wants their turf cut, which is certainly apparent in the recent string of news coverage on the first round of proposed cuts at the legislature. Yet, if every special interest group and level of government argues that their funding is “off the table,” there will be no choices left except for cuts to the voiceless. At some point in this process, every pledge and level of government must put their turf up for comparison to the predicted devastating cuts to the poor and other core safety-net programs.

We cannot cling to the past, but must look to the future to find a better way to provide for the delivery of core services and not necessarily services that have been provided historically.

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