Creighton University regional survey shows the rural mainstreet economy down for the 10th straight month. Roxbury Community College breaks ground on the Center for Economic and Social Justice. France's new left-wing alliance unveils an ambitious economic program. Examining the economic border war truce between Missouri and Kansas.
Sources:
https://nebraskaexaminer.com/briefs/creighton-university-regional-survey-shows-rural-mainstreet-economy-down-for-10th-straight-month/
https://www.bostonglobe.com/2024/06/21/metro/rcc-breaks-ground-center-economic-social-justice/
https://www.france24.com/en/france/20240621-france-s-new-left-wing-alliance-unveils-ambitious-economic-programme-%E2%80%93-and-how-they-ll-pay-for-it
https://www.kshb.com/news/local-news/examining-the-economic-border-war-truce-between-missouri-and-kansas
Outline:
(00:00:00) Introduction
(00:00:48) Creighton University regional survey shows "rural mainstreet" economy down for 10th straight month
(00:03:40) Roxbury Community College breaks ground on Center for Economic and Social Justice
(00:07:17) France’s new left-wing alliance unveils ambitious economic programme – and how they'll pay for it
(00:10:00) Examining the economic border war truce between Missouri and Kansas
Simply Economics
Rural Mainstreet Economy Declines, Roxbury Community College’s Center for Economic and Social Justice, France’s New Left-Wing Economic Program, Economic Border War Truce Examined
Creighton University regional survey shows the rural mainstreet economy down for the 10th straight month. Roxbury Community College breaks ground on the Center for Economic and Social Justice. France's new left-wing alliance unveils an ambitious economic program. Examining the economic border war truce between Missouri and Kansas.Sources:https://nebraskaexaminer.com/briefs/creighton-university-regional-survey-shows-rural-mainstreet-economy-down-for-10th-straight-month/https://www.bostonglobe.com/2024/06/21/metro/rcc-breaks-ground-center-economic-social-justice/https://www.france24.com/en/france/20240621-france-s-new-left-wing-alliance-unveils-ambitious-economic-programme-%E2%80%93-and-how-they-ll-pay-for-ithttps://www.kshb.com/news/local-news/examining-the-economic-border-war-truce-between-missouri-and-kansasOutline:(00:00:00) Introduction(00:00:48) Creighton University regional survey shows "rural mainstreet" economy down for 10th straight month(00:03:40) Roxbury Community College breaks ground on Center for Economic and Social Justice(00:07:17) France’s new left-wing alliance unveils ambitious economic programme – and how they'll pay for it(00:10:00) Examining the economic border war truce between Missouri and Kansas
- Duration:
- 13m
- Broadcast on:
- 22 Jun 2024
- Audio Format:
- mp3
[ Music ] >> Good morning and welcome to Simply Economics. It's Saturday, June 22nd. [ Music ] On today's show, Creighton University's regional survey reveals that the rural main street economy has declined for the 10th consecutive month. Roxbury Community College breaks ground on their new center for economic and social justice. Plus, France's new left-wing alliance unveils an ambitious economic program and discusses how they plan to fund it. This coverage and more up next. [ Music ] I'm David and you're listening to Simply Economics. [ Music ] We start off with a new survey from Creighton University that shows the rural economy in the Midwest and Great Plains continues to struggle. The rural main street index has been below growth neutral for 10 straight months now. For more on this, we're joined by our Simply Economics correspondent. So what exactly is this rural main street index measuring? >> The rural main street index is based on a monthly survey of bank CEOs in about 200 rural communities across 10 states, including Nebraska, Iowa, and the Dakotas. It looks at several economic indicators to gauge the health of the rural economy in these agriculturally and energy-dependent regions. A reading below 50 indicates contraction. The overall index fell to 41.7 in June down from 44.2 in May. High interest rates, weak farm commodity prices, and slumping farm equipment sales are the main factors dragging down the rural economy according to the survey. >> And how are things looking specifically in Nebraska? >> Nebraska's overall index dropped to 39.5 in June from 41.8 the previous month. The state's new higher index also fell, indicating slower job growth. One bright spot was that Nebraska's farmland price index rose slightly, though it remains below growth neutral. Data shows Nebraska's agricultural exports were up over 33% so far this year compared to 2023. But that hasn't been enough to boost overall confidence among rural bankers. What's the outlook from rural bankers for the next six months? Are they expecting things to improve? >> Unfortunately, the survey found that banker confidence in future economic growth remains very weak. The confidence index for the region did tick up slightly to 29.2 in June, but that's still at a very pessimistic level. Bankers cited the ongoing downturn in farm commodity prices and exports, as well as the slump in farm equipment sales in recent months. Until those key agricultural indicators improve, optimism will likely remain muted in these rural communities that depend heavily on farming and ranching. >> What about some of the other economic indicators the survey looks at? Any signs of improvement there? >> It's a mixed bag. Home sales unexpectedly jumped in June after being weak for several months. The home sales index rose to 62.5 from 46 in May. However, retail sales continued to fall with the June retail index slipping to 41.3 from 46.1 the prior month. Economists point to high consumer debt, elevated interest rates and weaker farm incomes as the main factors cutting into rural retail spending. Overall, the survey paints a picture of a rural economy that continues to face significant challenges despite some isolated bright spots. >> Thanks for that update and analysis on the challenges facing the rural main street economy. >> Shifting gears now to some positive news in education, Roxbury Community College in Massachusetts recently celebrated its 50th anniversary with a groundbreaking ceremony for the institution's new center for economic and social justice. The $8 million center aims to provide education and career development resources for black and brown students focusing on fields like environmental technology and healthcare. Here with more details is our simply economics correspondent. So tell us, how did this project come about and what will the new center offer? >> The Center for Economic and Social Justice has been years in the making. RCC's interim president Jackie Jenkins Scott worked with Senator Ed Markey to initiate the project and fundraising securing $4 million in federal funding. The center will be housed in the historic David Dudley House built in 1825 for one of the first slave owning families in Roxbury. As part of RCC's reclaim, rename, repurpose project started in 2022, the building will be renovated and renamed. When complete in 2026, the center will include community spaces, classrooms, remote education technology and resources to support entrepreneurship and economic development for black and brown students and local businesses. RCC is aiming to make it the first net zero carbon restoration in the state. It's an ambitious project with a meaningful mission. What has the response and support been like so far from the community and officials? >> There seems to be a lot of enthusiasm and buy-in. In addition to the federal funding secured by Senator Markey, the state contributed $500,000 and organizations like the Harvard and the Legacy of Slavery Initiative, the Boston Foundation and the New Commonwealth Fund have made donations to support the $8 million campaign. At the groundbreaking ceremony, Senator Markey emphasized the importance of investing in the dreams and education of local youth. State Senator Liz Miranda, whose district includes Roxbury, praised the project's mission to reclaim this nearly 200-year-old space for the community. The center's new executive director Luciano Ramos, who recently returned to Boston for this role, sees it as an important and overdue investment in educational and economic opportunities for black and brown communities. >> It will be exciting to see the impact once the center is up and running in a few years. Do the plans go beyond just serving students already enrolled at RCC? >> Absolutely. While RCC students will certainly have access to the center's resources, the vision is much broader. The center plans to partner with nearby small businesses to build community connections and support black and brown entrepreneurs. They'll work with RCC's Business Innovation Center to provide training and career support in areas like business development and economic policy. Making the renovation a net zero carbon project is also an opportunity to educate students and the community about green technology and make it more accessible. As Senator Miranda put it, "This project sends the message "that we can reclaim and repurpose spaces, "even those with troubled histories, "for the betterment of the community. "RCC hopes the center's work will support economic growth "and educational opportunity in Roxbury and beyond "for decades to come." >> An important initiative for Roxbury Community College in the region, thanks for the update. Shifting our focus to international news, a new left-wing alliance in France has unveiled an ambitious and costly economic program. The new Popular Front Coalition announced their plans and how they intend to pay for them in a joint press conference on Friday. For more on this, we're joined by our correspondent. So what are the key proposals in this new economic plan? The new Popular Front's economic program includes several major initiatives aimed at reducing inequality and boosting growth. Some key elements are raising the minimum wage, lowering the retirement age to 60, capping prices on essential goods, and investing heavily in ecological transition projects. Taken together, it represents a significant shift to the left economically. Those sound like expensive undertakings. How much is this program estimated to cost and how do they plan to fund it? You're right, it won't be cheap. The total cost is projected to be around €250 billion over five years. To pay for it, the alliance is proposing tax hikes on corporations and the wealthy. This would include raising corporate taxes, a new wealth tax, a tax on financial transactions, and cracking down on tax evasion. They argue the spending will stimulate the economy and create jobs, but convincing French voters may not be easy. France, like many countries, has seen a shift towards neoliberal economic policies in recent decades. Is the public appetite there for such a leftward turn? That's the big question. The new popular front believes people are ready for change after years of austerity, stagnating wages and rising costs of living. But as you note, economic liberalism has been the prevailing orthodoxy for a long time now. Overcoming that to convince voters that alternatives like more state intervention and redistribution are viable will be a real challenge. Opponents are already attacking the plans as unrealistic and economically reckless, implementing this program would seem to depend heavily on the left-winning power in upcoming elections. What are their prospects looking like? The alliance has definitely created a new dynamic on the left and polls suggest they'll make gains. But whether it will be enough to secure a governing majority is still very uncertain. A lot can change before election day. Even if they fall short though, a strong showing could enable them to influence policy and shift the national debate. At the very least, they've put bold progressive economic ideas firmly on the agenda. Thanks for the update on that developing political situation in France. Shifting our focus to the U.S., Kansas Governor Laura Kelly has signed a new law that modifies the state's Star Bond program in a way that could attract the Kansas City chiefs and royals to relocate from Missouri to Kansas. This comes after voters in Jackson County, Missouri rejected a sales tax proposal to keep the teams in the county. For more on this developing story, we turn to our correspondent at Simply Economics. So what exactly does this new law in Kansas do? The new law beefs up Kansas Star Bond program, which can help pay for new stadiums and surrounding entertainment districts. It's a unique economic development tool that Kansas leaders believe fits this situation perfectly. The chiefs and royals began exploring options for new stadium sites outside Jackson County after the failed sales tax vote in Missouri. Kansas saw an opportunity and acted quickly, passing this bill in a special legislative session. But there's some controversy around this move by Kansas. Missouri leaders are criticizing it as a violation of an agreement between the states not to use incentives to relocate jobs across the border. What's the background there? In 2019, the two states agreed to a truce to end the so-called border war where they had been using tax incentives to lure businesses back and forth across the state line in the Kansas City metro area. The truce prevents using state incentives to relocate companies between the states without adding net new jobs. Kansas City Mayor Quentin Lucas believes the new Kansas law abandons that truce and will create challenges. So does this new law actually violate the terms of that truce? It seems there may be some gray area there. The truce is applied to the same counties on both sides of the border, but they're a bit different in each state. In Missouri, it's a law that was passed by the legislature. In Kansas, it's an executive order from the governor. The Kansas order prohibits using certain named incentive programs, but doesn't specifically mention star bonds. Last year, Governor Kelly also said the chiefs were exempt from the truce. So Kansas legislators argue this doesn't violate the letter of the agreement. Even if there's no legal violation, it sounds like the spirit of the truce is being tested here. Is there any enforcement mechanism or penalty if one state feels the other has crossed the line? Not directly. Neither truce agreement includes any penalties for violations. The main recourse would be for one state to declare the other in violation and pull out of the truce altogether. Mayor Lucas questioned if Kansas might try to go to other big businesses next. So there's a risk this could reignite the broader incentive war between the states that the truce was meant to stop. High stakes indeed for the economic border battle between Kansas and Missouri. Thanks to our Simply Economics correspondent for breaking down this complex story, we'll continue to follow any new developments. And with that, we wrap up our stories for today. Thanks for listening to Simply Economics. We'll see you back here tomorrow. (gentle music) [BLANK_AUDIO]