George Rebane
[This is the addended transcript of my regular KVMR commentary that was broadcast on 4 March 2015.]
The rural counties of America are in economic doldrums. Whatever recovery that is enjoyed in the populated urban areas is not trickling down very fast to the less populated counties located in our mountains and deserts. Today the economies of these communities, that formerly included mining and timber industries along with robust farming and ranching enterprises, are suffering. Moreover, the damage to these regions has come not only from the national economic malaise, but is impacted even more by the relentless march of irrational environmental zealotry.
The regional sovereignty that these counties had in their own affairs is no more. In the nation’s statehouses the representatives of the populous urban centers rule, and they rule with little understanding or appreciation of the unique lifestyles and requirements for commerce and wealth creation in the less populated areas. No state is more afflicted with this syndrome than California.
A critical insight about the economies of remote and sparsely populated counties is that their wealth creation efforts are largely restricted to what is grown on or found under the land. This has limited such enterprises to agriculture, timber, and mining. If the land is also scenic or contains water resources, then to these pursuits we can add recreation and tourism. And often, government agencies contribute to the local economy by moving land management and infrastructure maintenance staffs into such remote jurisdictions.
But what has not worked so well in these regions is the establishment and operation of manufactories which require raw materials and finished products to be moved long distances. Yet many counties off the beaten path have spent monies and much effort to attract companies that fabricate things made more expensive by the added cost of truck transport not required when such businesses are located in population and shipping centers.
Nevada County is a living breathing poster child for these principles that limit and direct practical avenues of economic development. We have a declining population of a little less than 100,000 consisting of almost one out three residents who are over 60. Most of these are retirees who import cash into the county through their retirement plans and investment portfolios; they are a mainstay of the county’s service, hospitality, and cultural outlets. But, as acknowledged, our already small manufacturing base continues to shrink as transportation costs make their products non-competitive.
The resulting unemployment rate of Nevada County is significantly above the quoted 7.3%, and a large fraction of our population also depends on various government assistance and transfer payment programs. In response, the county movers and shakers have declared yet another open season for economic development. This was launched recently by our Economic Resource Council which still does not dare put ‘development’ into its name. The January event was well-attended but produced few if any actionable results – the usual group showed up, listened, and went away agreeing that economic development was needed. End of story.
The correct answer to our economic development problem involves growth and information technology based businesses – outfits that shuffle ones and zeros in and out of the county over broadband networks, while collecting dollars in the process. However, there are some significant built-in homegrown impediments for our being able to do more of that. And how we might deal with those problems will be the subject of future commentaries.
Let me just leave you with the notion that there is a significant cohort of our friends and neighbors in Nevada County who are not in favor of growth and development. These folks’ idea of a viable economy revolves mostly around growing organic vegetables for one another in some mysterious yet sustainable manner, all wrapped in something called ‘smart growth’ that calls for entertaining more tourists while serving as a bedroom community for neighboring cities and counties.
My name is Rebane, and I also expand on this and related themes on georgerebane.com where the addended transcript of this commentary is posted with relevant links, and where such issues are debated extensively. However my views, broadcast now from its new Bridge Street facility, are not necessarily shared by KVMR. Thank you for listening.
[Addendum] To highlight some of the realities of broadband in rural California that impact our lives and commerce, a correspondent writes –
According to the Public Utilities Commission there are 13 million California’s without access to the Internet, mainly in rural areas of the state. Of the citizens with Internet access, 20% are not taking advantage of this vital education, healthcare and economic service, mostly senior citizens who lack the required skills. Many of these senior citizens live in rural communities. … To implement Common Core, schools need to have Internet access at speeds greater than 10Mbps, both up and down, and many schools in rural communities do not have this level of access. The Federal Communications Commission is establishing 10Mbps and the minimum speed for schools.
Economic outlook and development conferences are being held in small communities across the state. One recent such conference in Kern County featured Gordon Fowler, founder of 3fold Communications, a business consulting firm in Sacramento. Mr Fowler shared some experiences and approaches that have contributed to the growth of his company. He also highlighted an important factor impacting business in California and noted “that despite the business friendly rhetoric throughout the state, taxes and regulations remain high and ‘rules, regulations and processes set up decades ago do not translate well into the real pace of business today and a technology infused business environment.’ (In this regard) he is engaged in continued efforts to reduce government obstacles, and give greater opportunity to the entrepreneurial energies and talents in California.”
Bottom line, the impediments of government continue to be felt at all levels in a state committed to lead the nation in implementing the progressive agenda. Such impediments can only be mitigated by strong local political leadership.
rebanesruminations.com 
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