President Barack Obama failing Economics 101

 Below is a editorial I copied from the “The Oklahoman”, my favorite conservative newspaper. Their reporting is factual and of sincere opinion.

Published: June 15, 2012

The president said the U.S. economy is doing fine. How far out of touch with reality can he be? He wants to put more borrowed money into public-sector jobs. While many of them are necessary, they don't produce income for the economy. My Economics 101 professor told our class that new wealth came from the minerals (coal, petroleum, iron, etc.), soil (wheat, corn, cattle, hogs, lumber, etc.) and the sea (fish and other aquatic life). The president and his administration (like the EPA) throw obstacles in the way of bringing this new wealth into the economy. This basic new wealth would result in thousands of jobs as it's produced, refined, transported and provided to the people to buy and use. These activities would provide tax revenue to pay down our debt, and hire firefighters, police officers, teachers and health care providers. We might even be able to buy a “thingamajig” to stimulate Obama's economy.

Hadley Meinders

But the problem with Mr. Meinders analysis is it is simplistic. His world of economics is to live of the earth’s resources. Pollution and population growth are of no concern. No need for innovation, just dig deeper. 

NAPERVILLE THEN AND 2012

I have been traveling to Naperville Illinois to a convention (ICHE) since 2004.  Naperville, a western suburb of Chicago is connected to Chicago by a toll road I 88, built in early ’80,s. I 88 lies between I 80 and I 90. Naperville population has grown from 44,000 in 1980 to 143, 000 in 2010. Naperville was ranked as one of the top ten paces to live by Money Magazine in 2008.

Because the Illinois convention had grown in Naperville to large for the church it was held in, it was moved to Dekalb convention hall in 2006 , 45 miles to the west on I 88. In the the year 2008 it was moved to a Mega church in Naperville.

In 2007 the fertile farmland between Dekalp and Naperville was being converted to track housing sites, nursery farm and sod farms. This expansion seemed to continue until 2009. 

Then in 2009 there was a reversal of nursery farms and sod farms to fields of corn. For sale signs were prominent in housing developments. In Naperville car dealers were closed.  Fast food restaurants were being closed. Strip malls were boarded up.

The “Great recession” had a firm grip on Naperville and surrounding area.

In my trips in 2010 and 2011 it was apparent the economy was healing. Car dealers were reopening. A new Toyota dealership was added on route 59 between 2010 and 2011.

And now there is Naperville 2012. The 15 MPG Chevrolet  Suburbans are being replaced by the 25 MPG Equinox SUV. Strip malls are occupied and new strip malls are being built. New infrastructure is being built and old infrastructure updated. Motel occupancy is hard to get and going up in price. To eat at Mortens Steak house requires a reservation for a 7:00 PM seating and a one hundred dollar bill. And new restaurants are being built.

Naperville and area has the appearance of an economic boom.

But there is a dark side! A new home school customer told me they were removing their child from public because there were fifty students in her class, with one teacher. As housing values dropped, tax income to municipalities dropped. Local government had to cut back. Public schools took the reduction by reducing teacher numbers. Reducing the education of our young people is a recipe for disaster.

Places like Naperville rebounded quickly because of the high level of work skills. Education is a investment in productive work skills. Areas where education is not high priority have high unemployment and not recovering from the “Great recession”.

Area’s like Naperville have not fully recovered from the “Great recession” until they restore and improve the education system that made them great.