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Friday, October 9, 2009
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Federal deficit reduction is crucial Guest column By STEVE WENZEL
Solving the problems and challenges facing rural Minnesota today presents opportunities for job creation and economic growth for rural Minnesota. Unfortunately, despite the growth potential in certain industries in rural Minnesota, we are still in the middle of the greatest economic crisis since the Great Depression.
The extent of the crisis is reflected in the budget deficit of the United States for this year of $1.9 trillion. It is a figure of stunning proportions and is unprecedented in the history of U.S. budget deficits. Placing it in perspective, President Obama has accumulated more debt than all the combined debt in U.S. history from the presidencies of George Washington to George W. Bush. The previous debt also includes the more than the $400 billion that President Franklin D. Roosevelt borrowed to fight and win World War II.
While the president and Congress work to resolve the growing fiscal crisis in the nation, our collective rural challenge is to grow the rural Minnesota economy and create rural jobs and economic development. A strong rural Minnesota economy will help reduce our own state budget shortfall which is now projected to be an unprecedented $7 billion next biennium.
Fortunately, Minnesota is the one Midwestern state that has shown steady population growth in the last 30 years climbing to 5.3 million people. Minnesota is the only Frost Belt state that has not lost Congressional representation in the U.S. House of Representatives since 1970, keeping our 10 votes in the Electoral College.
Tim Penny, a former U.S. congressman from Minnesota's First District and a strong leader on rural policy issues, made eight major recommendations in 2006 for the future economic growth of rural Minnesota. I cite three of those recommendations because they relate closely to the future economic vitality of north central Minnesota.
First is the growth of Minnesota's population over 65 - a projected increase of 50 percent by 2020 and a 100 per cent increase by 2030. Penny writes, "The demographic realities of an aging population remind us that health care will be a growth industry in rural Minnesota...they already provide thousands of quality jobs." In our region alone, St. Gabriel's Hospital of Little Falls, St. Joseph's Medical Center of Brainerd, Cuyuna Regional Medical Center of Crosby, and Lakewood Health System Hospital of Staples, all provide quality health care, are major employers and are regional economic assets.
Second, Penny states that community colleges and state universities "...are enormous regional assets. They are central to economic growth, job training and retraining in rural Minnesota." That is why we are fortunate to have Central Lakes College with campuses in Brainerd and Staples. It is a major force in education and the training so necessary to meet the economic needs of rural Minnesota in the 21st century. The challenge for state lawmakers and our next governor will be to keep strong these educational institutions vital to the future of rural Minnesota.
Finally, Penny cites tourism and recreation as a key asset in rural Minnesota. In Little Falls, the boating manufacturing comprised of Larson Boats and Crestliner, is an example of an industry that has had nationwide and international impact. Our policymakers must take pro-active steps, including writing state tax policy to preserve and expand this vital recreation industry.
But all of these potential gains for rural Minnesota cannot happen unless we make real progress in reducing the rate of growth in our national budget deficit. If allowed to continue unchecked and unchallenged, excessive U.S. debt will create double-digit inflation and higher interest rates which will kill jobs and economic growth. Equally troubling is that the United States has become a debtor nation to China.
The president and Congress must reverse the perilous economic course upon which they have set out. We need new policies restoring the economic health and vitality of our state and nation. The future economy of rural Minnesota--and of rural America - will be determined by federal policies that are fiscally responsible and provide for real budget deficit reduction.
STEVE WENZEL, Little Falls, represented Crow Wing and Morrison Counties in the Minnesota House of Representatives from 1973-2001 and served as State Director of USDA Rural Development from 2001-2009. He is an adjunct faculty member of political science at Central Lakes College and is a member of the Board of Directors for the Center on Rural Policy and Development.
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