Category Archives: Children and families

Virginia: a Bastion of Financial Literacy

Virginia is the third most financially literate state in the country, according to a new Wallethub survey that combines metrics of personal financial behavior and public policy indicators. New Hampshire and Utah rank No. 1 and No. 2, while Arkansas and Mississippi rank at the bottom.

“Financial literacy ultimately comes down to familiarity with key themes and concepts, the ability to think critically, good judgment and self-restraint,” writes Senior Writer John Kiernan.

The Old Dominion ranked 1st in the country for high school literacy, reflecting its low drop-out rate and its status as one of only four states in the country to require a stand-alone course in personal finance as a graduation requirement. Virginians also were more responsible on average in the handling of their personal finances, as measured by indicators such as the percentage of households that spent less money than they earned and the percentage that maintained rainy day funds.

I can vouch for the value of the state’s required course on personal finance. My 15-year-old son, enrolled in 10th grade, is taking the course this year. He is learning about everything from credit cards and mortgages to check accounts and 1066 federal income tax forms. I’ve maintained a savings account for him for years, which he long regarded suspiciously as a black hole that sucked up the money he received as Christmas and birthday gifts. But after learning about checking accounts, he was quite excited this year to go down to the bank with his Christmas loot, fill out the deposit slip and put the money into his savings account. He zones out when his mother and I try to teach him anything – but making it part of the school curriculum seems to confer legitimacy.

I’d classify the Economics & Personal Finance class as one of the more useful things that public schools teach in Virginia. I have no idea whether school learning actually changes peoples’ behavior — I’m a bit skeptical in that regard — but it can’t hurt. Everyone benefits when people assume responsibility for their own financial welfare and avoid making stupid and costly financial decisions.

-- JAB

A Frenchman Turns Economics Upside Down

Thomas-PikettyBy Peter Galuszka

Call it “The Anti-Baconomics.”

Thomas Piketty, a French economist, is turning conventional, conservative economic thinking on its head. Goodbye to the idea that all boats rise in capitalism. What we are seeing instead is a dangerous concentration of  21st century wealth in the hands of an ever-smaller elite.

This is Piketty’s message in his book “Capital in the Twenty-First Century” (a 700-pager on my reading list) that caught Europe by storm last year and is now a best-seller in this country.

Unlike convention wisdom, the thesis from this thinker from the Paris School of Economics is that Marx was wrong about capitalism self-destructing but so is Nobel Prize winner Simon Kuznets who posited a few decades ago that the inequality gap inevitably grows smaller with economic growth. Just the opposite, it turns out.

“One of the great divisive forces at work today,” Pinketty has said, “is what I call meritocratic extremism. This is the conflict between billionaires, whose income comes from property and assets, such as a Saudi prince, and super-managers. Neither of these categories makes or produces anything but their wealth, which is really a super-wealth that has broken away from the everyday reality of the market, which determines how most ordinary people live.”

This is why, perhaps, middle class families struggle to see declining disposable income while others who do not produce wealth but slice it and dice, like hedge fund managers or managers of huge corporations, are safe with their unsinkable portfolios. It is the same in just about any country, capitalist or no, from the U.S., to Spain, to China, to India to Russia.

If this continue continues unabated, as it probably will, you will see increasing social unrest as the 21st century wears on.

It seems interesting that Piketty who is in this 40s, came up of this relatively free from the residual Marxist thinking, or Keynesian for that matter, that did lurk in the background of many college economics intro courses. The Frenchman seems to be viewing things through a new prism of what has actually been happening over the past five decades when the middle class dream started evaporating and hard work, sacrifice and productivity simply no longer mattered.

If you read one of the books published a few years back by a prominent blogger here, you get the same-old Reaganomics of trickle down topped with a sauce of the Protestant worth ethic masquerading as agnosticism.

What’s the upshot of Piketty? It seems to be taxes, taxes and more taxes. In other words, it is time to start considering redistributing wealth from the elite back to their societies. The question seems to be “Why not? The elite didn’t really earn it anyway.”

Read meat for conservatives. The right-wing media has launched an anti-Piketty counterattack which is healthy and predictable. But he has a few things going for him. Given his youth, he represents the fresh views of up-and-coming thought leaders. And their thoughts are hardly the conventional all-boats-rise sophistry. Watch as the debate becomes stronger.

The Richmond Elite’s Bizarre Self Image

richmond-times-dispatchBy Peter Galuszka

If one wants to know one source of Richmond’s malaise, she or he need look no further than the pages of the Richmond Times Dispatch, the mouthpiece of the city’s elite. This is especially true when one reads this morning’s edition. The inadvertent revelations about the city and what is wrong with its leadership are stunning.

Some background. Last week, Style Weekly, an alternative newspaper in the city, published a hard-hitting cover story taking a ground-up view of just how awful and neglected the city’s school buildings and system are. The coverage is very much contrary to the image Richmond’s “leadership” wants to sell about the city.

As the schools are mismanaged and families are abused, the Richmond elite, and the RTD’s editors are pushing other pet projects such as building a new baseball stadium in historic Shockoe Bottom to replace a crumbling one elsewhere and a chamber of commerce trip to Tampa by 159 “leaders” to learn how another city works.

Full disclosure: I am a contributing editor at Style but had no input to the school story. I did file two blog postings about the schools story and received a number of highly insightful comments by readers. The basic problem, as several put it, is that  the schools are a mess is that the middle class has moved to the suburbs, the upper class sends its children to private schools and many of those left aren’t in a position to join the debate are have much influence. One out of every four people living in the city is poor.

The TD’s coverage today is a wonderful blueprint about exactly what is wrong with the elite’s thinking. Examples:

  • The front page features a catch-up story featuring short 125 word essays written by seven city council members and nine school board members. Three council members, Reva Trammell, Michelle R. Mosby and Cynthia Newbill – didn’t respond, perhaps wisely. The story states that judging from the responses, “momentum is building” for “substantive change.” The council, the school board and the mayor are working together. Mind you, this is not based on any real reporting—such as shoe leather in the school halls. Instead, one gets to read what the leadership responsible for the horrific problems thinks about them – sort of like interviewing the foxes after they raid the chicken coop. An added extra: the RTD claims it sent out its questionnaires before Style published its story, sort of like backdating stock options.
  • Flip to the “Commentary” section and a piece by John W. Martin, CEO and president of the “Southeastern Institute of Research in Richmond and frequent opinions contributor to the TD. His piece is basically an extended apology for proposing a new stadium in the middle of the blooded ground of the country’s second-largest slave market – standard stuff. Especially bizarre is the art. It is a cartoon drawing of what appears to be an interracial couple happily walking near what could be a combined slave memorial ballpark. The man is white, blond, wears a Richmond polo shirt and is flipping a baseball. His arm is around an African-American woman in sports togs and carrying designer shopping bags. In front is an apparently mixed-race child in a Flying Squirrels baseball cap happily holding out his glove to catch the ball from dad. The effect is downright creepy. It insults the intelligence of the readers and hits a very sensitive raw nerve, given Richmond’s sad history of race relations and the TD’s historic support of segregation five decades ago when it really mattered.
  • Let’s move to the Op-ed page where there is piece by Nancy Bagranoff, dean of the University of Richmond business school and upcoming chair of the Greater Richmond Chamber of Commerce. She was part of the chamber’s trip to Tampa to “learn” how they do it (while Richmond’s school buildings crumble). Her important takeaways seem to be that Tampa puts lights on its bridges, that it is a big port city, the region has distinctive personalities and that there are some universities there. Her conclusion: “I fell love with Tampa during out visit, but “I’m still married to Richmond.” Now that is extremely helpful.
  • Lastly, there is an impenetrable story by TD publisher Thomas A. Silvestri about several fictitious people discussing Tampa. Unsure of the point, I read the endline bio of Silvestri. It says he used to head the chamber and did not go on the Tampa trip because he’s been there before.

So, there you have it folks. Instead of real reporting, you have Richmond’s elite, some of whom are responsible for the problems, interviewing themselves. And that is a big reason why the city is in such a huge mess.

“Where Is the Closest Tiki Bar?”

tiki_barBy Peter Galuszka

Often times, blog commenters really hit the nail on the head. This is the case with “Virginiagal2” who responded to my blog post earlier this week that Richmond’s schools are decrepit and crumbling, as Style Weekly detailed in a recent cover story.

They note that Richmond’s elite has done little for its public schools while chasing higher-profile and extraneous projects such as a summer training camp for the Washington Redskins and a new baseball stadium for the Minor League AA Flying Squirrels.

Schools? What schools?

Blog posts also note that NFL football star Russell Wilson, a Richmonder, stayed at private Collegiate school after his father saw academics as more important than sports and blunted maneuvers by Richmond public schools to recruit Wilson during his school years.

Part of the problem, as Virginiagal2 notes, is that Richmond’s select and self-appointed “leadership” ignores the city’s serious problems while they embark another pointless road trip to another city, typically in the sunny South, to gather ideas on how they should proceed with their (how to describe?) “leadership.”

Just a week or so ago, about 160 of Richmond’s “leaders” were bopping around Tampa, sampling its eateries and noting the watery views. The biggest cheerleader for these junkets is The Richmond Times-Dispatch, which is very much a propaganda organ of the area’s chamber of commerce. Its publisher Thomas A. Silvestri was chamber chair a few years back yet few commented on the potential conflict of interest. On the Tampa trip, the editor of the editorial pages wrote a supposedly cute series of reports in a “postcard” (ha-ha) style about the Tampa trip. Here’s one tidbit:

“About 160 Richmonders will spend three days sipping from Tampa’s version of youth’s fabled fountain. Where oh where is the closest tiki bar?”

I couldn’t have said that better myself. Next, I’d like to copy what Virginiagal2 had to say in response to my blog. She absolutely nails it:

“The cost of sending a kid to Collegiate is beyond a lot of young families. What do you think those Richmond families value the most – a sports team that has around 5,000 people attend games, or a good safe public school for their kids? The RTD has been shilling for the stadium for months – when’s the last time the RTD advocated for money for better city schools? Do you ever remember them encouraging businesses to partner with city schools? Advocate for vouchers, yes – advocate for baseball, yes – improve the overall public schools, no.

‘nuf said.

Richmond’s Huge and Hidden Problem

The Seahawk's Wilson

The Seahawk’s Wilson

 By Peter Galuszka

There’s been plenty of image-building on this blog site in favor of what is perceived to be a “new” Richmond.

In this view, the former Capital of the Confederacy famous for its gentile white elite and, unfortunately, race politics, is being transformed to a major draw for talented young people and active retirees with plenty of diversity. Some evidence bears this out, such as the wealth of arts and culture and increasing upscale apartment rentals in the city.

The image is being pushed along by Richmond Mayor Dwight Jones who wants to anchor his downtown drive by placing a controversial baseball stadium in Shockoe Bottom. There is plenty of angst about his idea given that the city has other, more pressing concerns. They include its 26 percent poverty rate and the fact that the mostly white suburban counties seem to be moving farther from the Richmond sphere of influence.

There’s yet another big and unaddressed problem that may spell the ultimate fate of the city. Its school system is decrepit, as two recent stories in Style Weekly to which I contribute, point out.

One is a deeply reported cover story this week by Tom Nash that takes readers on a horrifying tour of several Richmond schools. Thompson Middle School has ceiling that ooze gunk. Diluted tar falls in classrooms. Fairfield Court Elementary needs a new roof. A tile fell on a student but the fix is $90,000 or one fifth of the district’s school budget for the year. Tom reveals more problems at Carver Elementary and Armstrong High, among others.

Most of Richmond’s school buildings are more than 60 years old. Dana Bedden, the system’s new superintendent, says school buildings are the worst he’s ever seen and that includes a stint in the District of Columbia. Reports say that $26 million is needed just this year to make a corrective dent in the problem.

Another Style story of note is an opinion piece by Carol A.O. Wolf, a former journalist and school board member. It was published in February, just after the Seattle Seahawks crushed the Denver Broncos in the Superbowl. The star was Seahawk quarterback Russell Wilson who grew up in Richmond.

Wilson’s dad placed him at Collegiate, a highly regarded private school in the West End. The Sporting News reported that when Wilson was a ninth grader at Collegiate, Richmond public schools started angling to recruit him to play ball for them. Dad said no. According to him, “I didn’t put Russell in Collegiate for sports, I put Russell in Collegiate to get the best education he could get.”

So much for Richmond’s public schools. It’s really too bad, as well, that the public school system is so neglected and that the mayor and other opinion makers are ignoring huge municipal problems in favor of top-down development like the new baseball stadium of questionable value.

The New West: Leaving Richmond Behind

Old Chesterfield bumper sticker mocks one from Henrico

Old Chesterfield bumper sticker mocks one from Henrico

By Peter Galuszka

This story may seem a contrarian piece when it comes to smart growth and exurban sprawl but so be it.

Back in 1969, road planners in Richmond came up with an idea for a superhighway, Route 288,  that would span the iconic James River and connect the far western suburban areas of Henrico and Chesterfield Counties, then primarily pine forests or dairy farms. The idea seemed to be to ring Richmond with a Washington-style Beltway and push growth farther away from the center city.

The scheme ran against some curious local snobbery – that of whether one lived on the north or south side of the James. The smug north side, of course, encompassed Richmond and its white ruling elite although many of them had moved to the West End or beyond to escape integration of schools.

Those living on the south side of the river were considered inferior, trailer park folk  whose uncouth views were more in synch with the Southside area of Virginia near the North Carolina border. Dixie would not mix easily with the assumed gentility of the Richmond folk, although southsiders had to drive to Richmond to see a doctor or do serious shopping.

Flash forward 45 years. Route 288 was finished about 10 years ago and despite the 2008 economic crash, it is quietly establishing its own upset of economic and cultural change and growth. It is linking Short Pump and its office parks and restaurants with upscale subdivisions in Chesterfield that boast of the highest income zip codes in the Richmond area. Capital One employees live at Foxfire. I explore this phenomenon in cover stories I wrote this month for the Chesterfield Monthly and the Henrico Monthly.

As George Hoffer, a transportation expert at the University of Richmond told me: “The West End and southwestern Chesterfield were going to grow independently. Then the highway did what public transportation can’t do. It provided links and created markets that didn’t exist before.”

And, as corporate relocations draw in more high-income workers from other areas, the old cultural biases are eroding. The newbies want convenience and could care less about Richmond’s ancient vanity about which side of the James one resides. Schools on either side of the river are comparable in quality, tests scores show. The north has more jobs and the south more houses, but that will shift over time.

Therein lies the rub. You have created a thriving exurban corridor that really doesn’t relate to the various and worthy land use ideals such as minimizing car traffic and creating bike trails. The most significant thing is that this outer corridor completely bypasses inner Richmond, its perpetual squabbling over over issues like a baseball stadium and its onerous 26 percent poverty levels. It doesn’t mean that the city is doomed to decay. Signs show more young people and retirees moving there. Unfortunately, however, low income ghettoes are stuck in a cycle of no jobs and inadequate transportation and the efforts of Richmond Mayor Dwight Jones haven’t produced many solutions.

The 288 phenomenon also is evidence that the cul-de sac ideals are not quite dead yet. Locating somewhere has long ceased being about white flight. The newcomers to the “New West”  include many people of color for whom Richmond’s racial animosities are more of an historical footnote. They may drive in to enjoy the city’s eateries and museums but choose not to live there and are hardly obsessed by what happened years ago.

So, Smart Growthers, you had better take notice. In some cases, the center city concepts you espouse are irrelevant.

An Inconvenient Obamacare Truth

SNL spoofBy Peter Galuszka

It is highly amusing to watch Obamacare detractors mock news that the Affordable Care Act has more than reached it goal by signing up 7.1 million Americans.

This inconvenient truth turns the Fox News echo chambers on its head. You also read a bit of that on this blog – there’s an unassailable assumption that Obamacare is a certain failure, the Website is a mess and that it will be rejected hands down by consumers. Therefore, it’s a given that it must be repealed or undergo massive surgery.

Obamacare deniers also link expanding Medicaid to the fray. That is why the General Assembly has not passed a budget. Hard right Republicans in the House of Delegates, led by House Speaker Bill Howell, have set up expansion along the lines of their Obamacare fight. Medicaid is DOA, they claim, and they are quite right risking shutting down state government July 1 to make their point.

Of course, they are plowing ground for November elections in which they assume (underlined) that Obamacare will be a killer topic for their allies.

Problem is, if Americans keep signing up (early problems with the Website notwithstanding), they kinda lose some of their thunder. They may have to come up with a new mule to beat.

Anyway, I caught this skit on Saturday Night Live last night and immediately thought of Bacon’s Rebellion. Enjoy!

The Koch’s Bizarre Meddling in Chesterfield

koch brothersBy Peter Galuszka

The Koch brothers are back in the bucolic suburban tracts of Chesterfield County.

This time, their national group, Americans for Prosperity, has launched a robocall campaign to oppose a proposed real estate tax hike of 4.6 cents to help pay for $304 million renovations to schools or perhaps hire more teachers to bring classroom sizes back to pre-recession levels.

It’s apparently the second time that Americans for Prosperity have been on their case in Chesterfield. Last year, the hard-right group sent out bizarre “report cards” to ordinary citizens bashing them for not registering to vote.

In one famous local case, a recipient was actually a registered and active voter and greatly resented the idea that a multi-million dollar national outfit like the Americans for Prosperity was trying to monitor his personal business.

This time, Sean Lansing, the group’s Virginia director told the Richmond Times-Dispatch, the goal is to “educate” residents on the issues, as if they are too stupid to understand local tax and classroom size problems that they probably know far better than some AEP appartchiki.

Chesterfield has caught itself in a bind because it hasn’t raised real estate taxes since 1990 despite its brisk growth rate. Voters in November voted down a 2 percent meals tax that could have raised money for schools. Henrico County voters, by contrast, narrowly approved a 4 percent meals tax and thus have no budget crisis that another tax hike is needed to resolve.

Admittedly, one of Chesterfield’s problems is bad planning. The staunchly Republican county has a long history of being very friendly to developers. Consequently, the county is in a constant service “catch up” mode. Need schools, such as Cosby High near some of the county’s largest residential developments, was already way overcrowded before it was finished a few years ago.

What is puzzling is what the Koch brothers are so interested in Chesterfield. It is hardly an election battleground. There is no strong Democratic or other opposing party. Yet with consummate arrogance, this cabal believes that residents need robocalls to “educate” them.

“Educate” them for what? If you want good schools and other services, someone has to pay for them. And as a Chesterfield resident for nearly 14 years, I can attest that taxes here are considerably lower than other places I have lived as an adult (Washington, New York, Chicago, suburban Cleveland, etc.).

The Terrible Link Between Income and Longevity

RAM in Wise County

RAM in Wise County

By Peter Galuszka

Call it a tale of two Virginias.

One is rich with military retirees, ample benefits and gated communities. The other is remote, poor and polluted, where the life expectancy for men is merely 64 years.

The former is Fairfax County at the heart of NOVA, Virginia’s economic engine, the land of federal largesse. The other is 350 miles away in McDowell County, in the coal belt of southern West Virginia just a stone’s throw from the Old Dominion border.

In one of the best and most glaring reporting of income disparity in this country, Annie Lowery of The New York Times lays out the stunning contrasts in two very different places maybe a six-hour car ride distant. The nut of her report is that higher income means longer lives thanks to better access to decent food, retirement benefits and medical care.

In Fairfax County, men live to be 82 and women 85. In McDowell County, men (as noted) live to 64 and women to 73. Even more astonishing is that this is happening in 21st century America, the supposed land of plenty. If ever there were a call to do something about health care, this is it.

Think what you will about the Affordable Care Act, the prior system of managed care with Big Insurance calling the shots just isn’t working. One also wonders, in the case of McDowell, where Medicaid and Medicare are. Where are the benefits from the coal companies that used to dominate employment in the area?

This hits home for me because I grew up partially in West Virginia when my father, a Navy doctor, decided to retire and go into practice there. I also traveled about researching a recent book on the coal industry. I spent a lot of time in Mingo County, the next one over from McDowell. I drove plenty of times through the small town of Williamson, a major rail marshaling yard, and was struck by how many elderly people I saw pacing slowly with oxygen tanks strapped to their aluminum walkers. Coal-related black lung? Too many cigarettes? Breathing air dirty from coal trains and trucks  and strip mines? Over in Fairfax, people of a similar age are more likely to be in a warm swimming pool at an aquatic aerobics class.

Back in the Appalachians, one morning my photographer Scott Elmquist and I were traveling from Kentucky back into Mingo County and I happened to see a Remote Area Medical free clinic at a high school in Pikesville. We turned in and found more than 1,000 people thronging the gymnasium floor waiting for doctors or for their turns at the more than seven dozen dental chairs for free care they couldn’t otherwise afford. Some I spoke with had been waiting there since 1:30 that morning. RAM runs a circuit that includes Wise County in Virginia, also in coal country.

So how did these people slip through the cracks? The Times notes that in McDowell, there aren’t any organic food stores or Whole Foods. The place in inundated with fast food and convenience stores that sell ready-to-go hot dogs, energy drinks and salty chips.

Another reason is the connection with the coal industry which has been so lucrative over the years that it should have provided plenty for the elderly. Instead, as coal seams play out and natural gas usurps coal’s role in electricity generation, coal firms are setting up to skedaddle. One is Patriot Coal, an offshoot of St. Louis giant Peabody, that took over its Appalachian interests so the mother firm could concentrate on richer areas in the U.S. West and Asia. Patriot was set up to fail and perhaps take retirement benefits with it. It’s an obvious scam. You spin something off to get some distance between you and having to pay pensions and health benefits.

Another factor is what they are doing with the local environment. Mountaintop removal is a powerful instrument in places around McDowell. At the blog Blue Virginia, they ran an intriguing map showing just how this highly destructive form of mining that rips up thousands of acres overlays with high poverty areas. Out of sight out of mind. It’s a shame how many in the green movement are forgetting the horrors of mountaintop to beat up on fracking which may be closer to home for them. Continue reading

No Negative Coal Poetry, Please

WV Governor's ArtsBy Peter Galuszka

Meanwhile, over in West Virginia, the long arm of King Coal reaches over to a high school poetry reading.

Grace Pitt, a Hurricane High School student, wanted to read a poem by Charleston poet Crystal Good about Richmond-based Massey Energy’s April 5, 2010, disaster at its Upper Big Branch mine that killed 29 men. The reading was to be held at the West Virginia Governor’s Arts Awards ceremony this week.

The poem describes how the disaster, the deadliest in this country in 40 years, created 29 black diamonds “in what they call a ‘mine disaster’; others ‘industrial homicide.’ (The United Mine Workers of American titled their report on Upper Big Branch as “industrial homicide.”)

According to the Charleston Gazette, before the reading, Tabitha Walter, grants coordinator for the Division of Culture and History and a sponsor of the ceremony, emailed that “I really hate to do this, but because your poem deals with coal and many state representatives will be there, our director wants you to choose a different poem.”

The email went viral and the push back was so strong that the state department backed down.

The poem will be read Thursday.

It is not unusual in the coalfields for coal companies and other energy firms to bankroll cultural events and perhaps maintain some degree of control over them. Alpha Natural Resources, the Bristol-Va.-based coal firm that bought Massey, funds “Mountain Stage,” a roots and folk music program with a national audience that is produced by West Virginia Public Broadcasting.

The public broadcasting group also recently ran a soft documentary that noted how natural gas has been drilled for years in the Mountain State. The film was an apparent propaganda effort to smooth public acceptance of using controversial “fracking” to reach Marcellus Shale gas fields.