Corporate profits

KY is stuck on big government thanks to escalating corporate profits

The Bluegrass state has turned bright red. A significant change from the 50s and 60s when the middle class across America represented the American dream and was bluer. The hard work paid off. The lifestyle and comforts associated with the average life once impressed other democracies. Everything was “bigger” in the United States. This comfort is no longer accessible to middle-class incomes. The quality of life has gone down.

The milieu now identifies with Rand Paul and Mitch McConnell’s effective assertion that “big government” is bad and must be eliminated. But under their rein, Kentucky has fed on the federal government for years. Rather, their policies have increased, not decreased, public spending.

  • For every dollar paid by Kentucky to the federal government in 2020, we received $3.16 without COVID relief. The highest in the country! In 2020, KY received $14,300 per capita compared to the US average of $3,900. Kentucky received a total of $64.5 billion. It’s approximately 30% of our GDP. Rockefeller Institute
  • All states have public expenditures to maintain transportation networks, roads and bridges, provide public order and safety, people in prison, monitor public health and clean water, and educate children. But Kentucky almost doubled Health care and social assistance over the past 20 years to over 250,000 employees. A hidden diabetes epidemic, respiratory and cardiovascular diseases, obesity and mental health weigh heavily.

After:TIF West End meeting: Big check, protesters and gentrification concerns

Democrats struggle: They have a disconnect; how did they lose the environment they built?

If you were looking for answers, you didn’t need to listen to “Meet the Press” or “Fox News” on April 29. You could go to Falls of Rough, Kentucky, where “The BluegrassRoots” held their first conference. Thomas Frank, author of “Listen Democrats” and other bestsellers, was invited as keynote speaker:

Thomas Frank: “What happened to the value we lost? The big bourgeoisie of 1965 has disappeared. At a time of rising affluence, with 6.5% GDP growth and widely shared health insurance bills. The richest owned only a billion. Thirty-five percent of workers were organized in unions, and taxes were high for those earning income.

  • Back then, in the 1950s-1960s, when the middle class was comfortable, corporate taxes were around 50% and the economy was growing at an average annual rate of 3.9%. But over the following decades, corporate taxes were lowered to 35% and the economy only grew by around 1.8% on average. Now the federal corporation tax is 21%, and in several states corporations pay no corporate income tax.
  • Following the Covid recession, companies’ profit margin on the price of a product has increased from a typical rate of 11% to 54%, according to the Economic Policy Institute. The share of workers fell from the typical 62% to 8%.

Thomas Frank: “Fast forward to 2021. Low taxes, 6% organized in unions, five times more prescription drugs, skyrocketing death of despair, 16 multi-billion dollar mega billionaires and 84% new jobs are in the service sector (health care and restaurants). It’s a dismantling of civilization and all about the welfare of the top. It is the downfall of the affluent society.

  • Today, high” are states with larger financial markets, such as Connecticut and New Jersey, or the many more educated metropolitan areas where wealth tends to concentrate. It is also the sectors that inject revenue into the federal government that help us pay the bills. This is mostly blue territory.
  • Kentucky is one of the biggest net recipients of federal funds because our income tax and Social Security revenues are far too low to cover our bills. Corporate tax revenue is negligible.

Thomas Frank: “Republicans who worshiped the corporate sector made it easier to travel abroad, with this severe loss of domestic jobs and more tax cuts. Long summer of corporate love. Suddenly the monopolies were harmless and the blue-collar unions dangerous. Why don’t the Democrats organize their discontent?

  • the corporate well-being harms local communities. There is little return to society on their profits, destroying state and local economic balances.
  • Rand and Mitch are still advocating for coal jobs! As a doctor, Rand should create jobs that make people healthy, not sick, and get them on welfare. Coallands should have been left to prosperous rural communities, not impoverished and depressed.

For subscribers:‘Absolutely unsustainable’: Jump in Louisville home values ​​may be a sign of things to come

“The Democrats have distanced themselves from those they represent. Bill Clinton, the flower of meritocracy: what you earn depends on what you learn. You get what you deserve, what you did in school The Democrats have become the class party, not the United States!

  • Most democracies will show that education contributes to a better bottom line for all. This is how you create comfort and confidence and build better health, a long-term process. But society must include everyone.

Thomas Frank: “How to build a liberal movement? It is about addition, not substitution, about economic development to appeal to the economic interest of the working class and mobilize the CEO. For whom does America exist? Billionaires, technocrats. Blue collar workers are not visible. The opportunities are limitless. Kentucky needs to wean itself off federal funds and require big business to invest in rural communities. Blue collar work must be recognized again and hard work must be rewarded. The truth is rough, and Falls of Rough was a great place to digest it. The BluegrassRoots was an initiative to declare: We are all one nation under GOD. Finding common ground must be the solution.

Kris O’Daniel is from Denmark and has a master’s degree in dairy science and engineering.

Her first job was as an associate expert with the Food and Agriculture Organization of the United Nations (FAO) stationed in Chiang Mai, Thailand, where she conducted training courses in the Far East.

Kris and her husband own Zelma Farm, a cow-calf operation producing beef cattle with improved genetics. Kris is passionate about the environment. In her spare time, she works with wood.