NewGeography.com blogs

Nicholas Stern, a former World Bank economist and author of the seminal “Stern Report,” injected a rare bit of reason into the discussions about global climate change in Cape Town recently. Stern said that if nations acted responsibly they would achieve zero-carbon electricity production and zero-carbon road transport by 2050 - by replacing coal power plants with wind, solar or other energy sources that emit no carbon dioxide, and fossil fuel-burning vehicles with cars running on electric or other clean energy.

What a welcome vision. No hint of social engineering, no litany of activities and lifestyles to be abandoned, but rather a clear implication that technology offers the solution. (And, by the way, it does.). So let’s put an end to all of this talk about behavior modification and instead set about developing the technology that allows people to live as they prefer.

That was the question posed to character actor and West Irvine, Kentucky native, Harry Dean Stanton, in a recent Esquire interview. “There is no answer to the state of Kentucky,” he said.

And so after the battering Kentucky took during the primary elections we continue to get The Beverly Hillbillies treatment by the media. Particularly memorable was CNN’s “interview” with down and out squatters in Clay County lamenting their hard-knock lot in life. Even some of our own natives, like Stanton I presume, see a lost cause.

The history goes back to the coal mining wars with Lyndon Baines Johnson’s 1964 announcement of the War on Poverty. He was photographed on the front porch of a run-down house in Inez, Ky. For decades, that famous photo has demonstrated the failures of the family on the front porch – and how far we have not come in conquering that scourge.

As Inez banker (and former RNC Chairman) Mike Duncan recently put it, “The War on Poverty did not succeed.”

And, then comes Diane Sawyer, this past Friday on 20/20. Ms. Sawyer, a native of Kentucky has always shown a great interest in “us.” She has come to the mountains and coal fields on several occasions – most recently to develop this story. We trust that her intentions are good – we are certainly proud of her and the achievements of the many famed Kentuckians who have gone on to do great work in Kentucky and elsewhere.

Back home, the reviews of her 20/20 segment are mixed. Facebook postings point out that, while sad and heart wrenching, the truth is what it is. Statistics can lie but they must be heeded. And they are heartbreaking – drugs, obesity and dead ends that lead to a general malaise about how any government or private efforts can ever make a difference.

But there are bigger stories to tell. For one thing, we are not alone. What isn’t covered in all the “Richard Florida creative class” media hype is that lots of communities face the same situation as those in Appalachia. Florida contends that our big cities won’t be successful in the future without an infusion of educated, innovative and creative people. I think the examples of decay are far worse in the gleaming cities of New York City, Boston and others. There are Americans left behind in the urban lands of plenty as well.

The other story is that people in Appalachia are working on it.

I prefer to tell this story - from the bottom of a barrel if necessary until someone pays attention. I hope Ms. Sawyer (or someone) will tell the stories of school test scores that are off the charts in rural Kentucky counties like Clay and Johnson or of what is really happening in Inez, Ky., where a group of natives have moved back to their home in order to make a generational impact.

These well-educated, successful people recently gathered and vowed to rewrite the story of the failed War on Poverty. They’re not asking for a handout or even a hand-up. They’ve already recognized that the problems are theirs and have taken ownership for finding the solutions.

There is an emergent sense that it takes more than a “hollow” to raise a child. It takes a lot of people to bring a future to the mountains.

Unlike Mr. Stanton, I believe we can find the answers to change from within ourselves - in Kentucky or anywhere. We have a responsibility to each other, to our children, to the land and to our past.

I hope our media will tell more stories of people that are taking responsibility for their communities. Nothing is more Appalachian, or American, than a colorful tale of toughness and the spirit to try.

Here's a look at national employment change in the United States over the past 10 years. Nonfarm employment peaked in the US in December of 2007 at 138.1 million jobs. After a record loss of 598,000 jobs in the last month, we're now at 134.5 million. Thats a loss of more than 3.5 million jobs over the past year. Conveniently, 3.5 million jobs is exactly what Obama administration economists plan to create or save with the stimulus package.

If we cut it by sector, recent job losses in manufacturing, construction, and professional and business services are striking. Over this same time period, we've added roughly 4.5 million jobs in education and health and another 2.5 million in government jobs. Perhaps the president is planning to hire those 3.5 million new employees directly?

If we index each sector back to January 1999, we can begin to see the trajectory of each industry over time. For this chart, the height of each line at a given point of time indicates percent growth over the January 1999 level. The heavy black line shows growth for all sectors.

From here, the dot-com bust is obvious, as is the fact that the information sector has not recovered to pre-2000 levels. Information may be even more trouble in the short term, as that sector includes media and publishing.

The construction employment boom began in mid 2003 and eventually reached more that a 20% premium over 1999 before falling back to mid 2003 levels last month.

Manufacturing has fallen precipitously with this bust, we are now seeing marked declines in other goods-supporting industries: wholesale trade and transportation and warehousing.

Again, institutional sectors of Government (up 12%) and eds and meds (up 30%) lead the way. The other fastest growing sector since 1999? Leisure and hospitality. Staycation, anyone?

Nebraska was the 37th State to join the Union, is home to the “Cornhuskers,” and currently has a $3.5 billion budget and a $563 million cash reserve.

In this time of economic hardship, the Cornhusker state has no debt, shunning all long-term financial commitments including retirement benefits.

A recent USA Today survey of state financial reports found that the other 49 states combined “have an unfunded obligation of $445 billion” owed for the medical care of retired government workers.

The formula accountants use to compute the financial health of a state government includes medical benefits, debt and pension liability. Medical benefits represent the Pandora’s Box of the three, with civil servants often retiring before Medicare benefits kick in at 65.

In contrast, Nebraska is the “only state that doesn't subsidize the medical care of retired government employees.”

Other states and local governments have debts that range anywhere from New York City’s $60 billion obligation to Los Angeles’ $544 million sum.

Some state and local governments have begun setting aside money to prepare to pay retiree medical costs. Some plan to pay nearly the entire cost, other will contribute a fixed amount, such as “$200 a month or 50% of the health insurance premium.”

In defending Nebraska’s nonexistent retiree health care coverage, Senator Dave Pankonin distills his state’s approach simply: “Nebraska is a fiscally conservative, pay-as-you-go state, and that’s the biggest reason we don’t have this benefit.” Or, he might have added, deficit.

Last week I took a look at the share of US born residents in each state born in their current state of residence. Some on other blogs wondered if a low share of native born in a state meant that everyone has left or if instead that state is a big lure to out-of-staters. Aside from a few outliers, it seems to be the latter. Take a look at this quick analysis: states with a low share of native born tend to have high net inmigration and states with many born in state tend to have high outmigration.

It makes sense that in tougher times (evidenced by net outmigration) those with deeper roots find a reason to stick around - or maybe they are just tied down.

High net inmigration, low native born states tend to be high in natural amenities (read: mountains) or recent boom states in the west - many of which may have capitalized on the exodus from California. Note that North and South Carolina, Georgia, and Tennessee have similar numbers.

Most interesting is the grouping towards the upper right: states with both above average number of those born in state and positive or near positive migration. Could this signal a return of the diaspora to states like Texas, Kentucky, Alabama, Utah, or even Wisconsin and Pennsylvania?

The business sections of newspapers have become doomsayers for the nation. Sensationalistic journalism decries of the failings and crises that have done our economy irreparable harm.

Rewind to a couple of years ago, and the print media was content with profiles of personable CEOs and pages upon pages devoted to the kitschy Mergers and Acquisitions. Where was the hard-hitting reporting that could’ve opened the public’s eyes to the failing economy much sooner?

“I'll attest that business journalists as a rule are as smart, sophisticated, and plugged-in as they seem”, notes former Wall Street Journal reporter Dean Starkman in a recent article for Mother Jones. And yet that army of professional business reporters – an estimated 9,000 or so nationwide in print alone – for all practical purposes missed the biggest story on the beat. Why?”

Starkman suggests the print industry’s own declining financial health may play a role. In the last decade alone, the New York Times profit margins have fallen from 24 percent to a meager 8.5.The newspaper industry’s failing has also resulted in a 25 percent loss of jobs in the business reporting field alone.

He adds that business journalism’s insistence on clinging to outdated formulas could play a role. The focus on consumer-pleasing and personality-driven stories – “not deconstructing balance sheets or figuring out risks” – seems part of the problem.

Obama’s $800 billion stimulus bill has both policy makers and the public wondering what the bill will actually manage to stimulate. Yet, somewhat surprisingly, a recent study shows that left to fend for itself, the United States is inherently prosperous.

The Legatum Prosperity Index recently released a study of the most prosperous nations, measuring economic growth and quality of life. The study found that the U.S. – despite its current economic situation – ranks fourth out of 104 nations.

The amount of wealth and sense of well-being enjoyed by U.S. citizens is higher than any among large countries, with no other country with more than 100 million inhabitants ranking above the top 10.

The Index measures nations overall by “how well they foster the practices, institutions, and habits that create competitive economies, stable and free political institutions, and social capital.”

When looking at prosperity in this fashion, America and its ability to foster both economic and non-economic progress is what puts it so high on the scale. The US still rewards innovation and entrepreneurship to an extent seen in few other countries. This opportunistic culture provides the basis for successful growth of commerce even in an otherwise weak environment.

The U.S. bests the other top 10 countries on personal income by 40 percent. It scores 38 percent higher than the rest of the world in its ability to “commercialize innovation through patents.”

On the flip side, the US ranks just 7th in economic competitiveness and below average on promoting international trade and investment. The stimulus bill could offer some jolt to the weak economy, but given access to capital, Americans might prove adept in finding their own path to prosperity.

The first in a series of videos about the economic, political, and cultural history and future of East St. Louis, Illinois.

Part II gives views of downtown today, shows how its history can be seen in the city, and explains why the city could still be a good place for new development.

Michael R. Allen is the Assistant Director at Landmarks Association of St. Louis. He edits the blog Ecology of Absence, "a voice for historic preservation and a chronicle of architectural change in St. Louis, Missouri and its region".

Alex Lotz is an undergraduate film student in his final year at Chapman University.

President Obama’s recent executive compensation plan comes on the heels of the revelation that Wall Street firms awarded over $18 billion in bonuses last year. The plan will create a $500,000 pay cap for executives at companies receiving substantial taxpayer bailout money.

While the Wall Street salary cap – certainly well intentioned – mirrors public sentiment nationwide, the Masters of the Universe and their friends are not so pleased. Some feel it is a “killer for New York.” Kathryn Wilde of the Partnership for New York argues the lower salaries on Wall Street will lead to a “critical brain drain” in the industry and “lower tax revenues for the city and state.”

But in the longer run, is this all bad? The so-called “brain drain” of high priced talent – the same folks who got us in trouble in the first place – could be fortuitous if more creative and innovative professionals now arrive on Wall Street. A new breed of Wall Streeter might have the potential to create a sustainable industry rather than the current casino culture. What may be a superficial wound on NYC in the short term may benefit the country as a whole – and even New York – in long run.

In which states do folks tend to stay home? Here's a look at Americans still living in their birth states. New York and Louisiana top the list. Upwards of 82% of the US-born residents living in New York and Louisiana were born there. Looking at the map, you can see that the highest numbers reside in the rust belt and northeast. The most transplants tend to live in natural amenity rich western states, except for California.

More than 72% of US born Californians were born in the state. That number is over 74% in LA county, but only about 60% in San Diego. Other high transplant areas include New Hampshire and Vermont in the northeast, and not surprisingly the Washington DC area, Florida, and Nevada.

Only 41.7% of US born Alaskans were born there. I suppose if you are living in Alaska, you've come there for good reason.

Take a look at an extension of this analysis: Does a low number of home staters mean everyone has left?

Source: U.S. Census Bureau, 2005-2007 American Community Survey