Category Archives: Poverty & income gap

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 Perils of Gas Fracking

By Peter Galuszka

More media accounts are showing up now that 84,000 acres of lands south and east of Fredericksburg have been leased for possible hydraulic fracturing drilling for natural gas.

This Sunday’s Richmond Times-Dispatch published a map showing the leased area covering big swaths of land from the Fort A.P. Hill military area east across the Rappahanock River on  into the historic Northern Neck. These are some of the loveliest parts of the Old Dominion, featuring  sloping valleys, rich bottom lands and meandering creeks and rivers that are filled with wildlife, not to mention farms and homes.

The newspaper quoted Mike Ward, executive director of the Virginia Petroleum Council proclaiming fracking as being safe and that the construction activity to place wells only takes a few months. “It’s like a construction site,” Ward said. “As it’s being done, there is going to be truck traffic. There’s going to be noise. There’s going to be some dust in the air. There’s going to be mud around the area. But that’s short-lived.”

Really? To be a better idea, I started surfing YouTube to see what the local impact of constructing fracking wells is really like. I happened upon several films from rural Harrison County, W.Va., an area where I lived as a child from 1962 to 1969.

The videos show an area in western Harrison County near the college town of Salem in landscape surrounded by rolling hills and dairy farms. There has been coal mining in the area and natural gas has been around for decades, but fracking wells are something new.

The videos depict an ongoing nightmare for neighbors who have found their quiet, bucolic existence interrupted 24/7 by the roaring of diesel generators, huge floodlights, and many, many trucks. One woman says that the well site across her road starts up around 4 a.m. and she can’t get back to sleep so she’s constantly tired when she goes to work.

Water and construction trucks, many 18-wheelers, are a big problem. They sideswipe cars on rural, two-lane roads or block traffic for a half an hour after they get stuck trying to turn around. The heavy trucks crumble pavement on country roads. Some local ones have had to be repaved four times since drill site preparation began a couple of years ago when the fracking craze began.

It seems likely that areas near Fredericksburg and on the Northern Neck and Middle Peninsula will taste some of the same problems if fracking begins. The Taylorsville Basin in the area may hold 1 trillion cubic feet of gas.

Further questions abound about the company that’s putting together leases for the area. It is an obscure company called Shore Exploration & Production Co. with offices in Dallas and Bowling Green. The plan, company officials have said, is to put buy up gas leases and then flip them to a drilling company.

The company insists it won’t use a “watery” method of fracking but can’t seem to explain its supposed substitute which is to use some form of nitrogen. In West Virginia, wells can need up to five million gallons of water that must be trucked in. Does this mean that trucks carrying nitrogen will come in instead?

Answers seem to be as fleeting as the Shore company which has two full-time employees and has no annual report or website. It has never drilled a well itself, just exploratory ones. One official told a newspaper that having an annual report and website “would provide information to competitors.”

That statement alone should give tremendous pause. What happens if you live in the country of the Northern Neck and a gas well emerges next door? What happens if your life is disrupted by 24-hour diesel generators, lights and dozens of heavy trucks? What happens if the “flow-back” ponds that contain waste, including radioactive material and methane from the drilling area below, breach?

Eastern Virginia is not used to such challenges. As a former resident of West Virginia where such challenges are common, I know well what this kind of set-up can mean, especially in Virginia that has some gas wells in its southwestern tip but has little experience with fracking.

Fracking the Mother of Presidents

fracking rigBy Peter Galuszka

Controversial hydraulic fracking appears to becoming a distinct possibility in areas south and east of Fredericksburg on land that is famed for its bucolic and watery splendors along with being the birthplaces of such historical figures as George Washington, James Monroe and Robert E. Lee.

After several years of exploring and buying up 84,000 acres worth of leases from Carolina to Westmoreland Counties, a Dallas-based company that uses a post office box as its headquarters address participated in the first-ever public discussion of what its plans may be.

According to the Free-Lance Star, the meeting was put together by King George County Supervisor Rudy Brabo to air concerns and hear plans of Shore Exploration and Production Co., which is based in Dallas and has offices in Bowling Green. Its headquarters address is registered with the State Corporation Commission as P.O. Box 38101 in Dallas.

About 100 people attended the meeting April 14, but judging from the newspaper’s account, not many questions were answered. Participants repeatedly asked Shore CEO Ed DeJarnette what his plans were regarding fracking and who would be responsible for damages if something went wrong.

DeJarnette responded that his firm is merely buying up leases and is looking to sell them to other gas drillers and operators. The state’s Department of Mines, Minerals and Energy issues permits one at a time and is responsible for enforcing them, he said.

Hydraulic fracking and horizontal drilling have touched off a revolution in the American energy industry in recent years, particularly in the Marcellus Shale gas formations that stretch in the Appalachians from New York State to southwest Virginia. The methods have also been used to reach rich shale oil deposits in North Dakota and other western states.

Fracking has been used as a drilling process for years according to media accounts and authors such as Gregory Zuckerman whose recent book “The Frackers” covers the process’s increasingly widespread use in the past several years.

Among concerns are that the toxic chemicals mixed with water and then pumped hundreds of feet underground could eventually ruin groundwater serving streams and wells. Other concerns are that the inevitable “flowback” in drilling will require surface ponds to handle toxic waste. In places such as Pennsylvania and West Virginia where fracking is permitted, quiet country areas are badly disturbed by the roar of diesel generators at drilling sites and from trucks that are constantly delivering drilling supplies. Methane can leak from drilling rigs, further complicating global warming issues, and flash fires can be problems. Fracking can also consume great amounts of water which often has to be trucked in.

On the plus side, holders of mineral leases can receive great sums in royalties and various taxes and other payments can boost local tax coffers. Natural gas is cleaner and less deadly source of energy than coal, plays a big role in electricity power generation in the Mid-Atlantic.

At the King George meeting, DeJarnette told the audience that he preferred using nitrogen as an element in fracking rather than water, but there were few details in the newspaper story.

While providing scarce details on who would actually handle the drilling, how it would be done and who would be responsible for damages, DeJarnette repeatedly emphasized the monetary benefits and jobs fracking would bring.

If it proceeds, fracking in the Taylorsville Basin would likely be confined to Virginia, which is more business-friendly than Maryland where the basin also extends. The field stretches across the Potomac River into Charles, St. Mary’s, Calvert and Anne Arundel Counties but Maryland has a moratorium on fracking until it can be studied further.

DeJarnette says he wants drilling to start by late this year or in 2015. Major oil firms explored the Northern Neck area and found some evidence of oil and gas deposits there in the 1980s.

The City of Great Places

Belden Street

Belden Street

So, here we are in San Francisco, in the heart of the land of fruits and nuts. We’re  planning to do a lot of the usual tourista things — take the boat to Alcatraz, bike to Sausalito, visit the Exploratorium — but your roving correspondent also will be applying a keen eye to the human settlements patterns of one of the United States’ most remarkable urban experiments.

San Francisco and nearby Silicon Valley comprise the most economically productive region in the U.S. (with the possible exception of Manhattan, although I regard the New York financial industry as a monstrous parasite that, due to Quantitative Easing, prospers at the expense of the rest of the country). San Francisco and San Jose (and environs in between) also happen to have the most expensive real estate prices (outside, perhaps, Manhattan) and the greatest income inequality in the country. Yet there is a remarkable divergence between Frisco and Silicon Valley. San Francisco hews to the Smart Growth ideals of higher density, mixed-use, walkable and transit-oriented human settlement patterns while Silicon Valley epitomizes sprawl. San Francisco is a tourist destination; Silicon Valley is not. I don’t know what all that adds up to but it is my framework for writing whatever I write about.

First observations: Arriving Saturday evening fatigued from a long trip, the Bacon farrow (farrow? Look it up.) checked into its hotel and set out to grab a meal before hitting the sack. There is a delightful little street near our hotel — Belden Street on the edge of Chinatown (see photo above). It really isn’t even a street, it’s more of an alleyway, too narrow for cars, that is lined with seven or eight restaurants. There is nothing exceptional about the street; it’s just one small example of the place-making that inspires love of this city. The alleyway is a visual surprise in that is represents a departure from the dominant street grid. Cozy and intimate in its human scale, it is a delight to stroll through.

Multiply Belden Street hundreds of times across the region and you get a place where people love to live and are fiercely loyal to.

– JAB 

Blaming the Innocent and Exonerating the Guilty

Scuzzy girls' locker room in   Armstrong High. Who's responsible for inadequate maintenance?

Scuzzy girls’ locker room in Armstrong High. Who’s responsible for inadequate maintenance? (Photo credit: Style Weekly.)

by James A. Bacon

In the previous post, PeterG questioned the priority of “Richmond’s elite” of building a new baseball stadium for the Flying Squirrels over patching the city’s scandalously decrepit public schools. I share his skepticism that what the city really needs right now is a new stadium. However, I disagree with a core premise of his post, that “Richmond’s elite has done little for its public schools.”

In FY 2009 the City of Richmond schools spent $13,601 per pupil. Henrico County spent $9,369. Chesterfield and Hanover spent slightly more per capita. In other words, “Richmond’s elite” spent 45% more per pupil on Richmond city students than on students in “affluent” Henrico County. (I rely upon outdated statistics because I simply did not have time this morning to search for more recent ones. The per-pupil spending gap has not changed significantly since then.)

A better question is why “Richmond’s elite” tolerates suburban schools receiving so few tax dollars compared to their city counterparts.

An unspoken assumption embedded in PeterG’s commentary is that the problem in Richmond schools is insufficient funds as opposed to a misallocation or mismanagement of  funds. Is the failure to budget sufficiently for basic maintenance in a school system that spent $13,600 per pupil in 2009 (and more today) the fault of “Richmond’s elite”… or the school administration?

One last thing: PeterG fails to take into account the considerable resources raised by Richmond-area philanthropists to supplement public dollars spent in the schools. The Communities in Schools program, for instance, locates resources from city social services and non-profit programs to help students coping with the dysfunctions of poverty — lining up  food, clothing, tutors, mental health counselors, health care, transportation, and occasionally even furniture for children’s homes. “Richmond’s elite” is actually very involved in helping poor, inner-city minority kids.

I’m not persuaded that gallivanting off to Tampa in search of the great Tiki bar will help Richmond junketeers discover anything terribly useful for Richmond — I do agree with Peter on that. The Chamber of Commerce’s annual visits seem to lack focus and rarely come back with insights that can be applied locally. Instead of visiting Tampa, perhaps the group should have traveled to New York City to see what difference the charter schools movement there is making for minority kids and assess the applicability of charter schools to Richmond. That’s the kind of bold, non-incremental thinking the city needs.

The region’s political and civic leaders probably do need a cattle prod to think more creatively about the region’s challenges. But blaming them for the sorry condition of city schools is really too much.

“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.

Income Inequality and Party Representation

income_inequality
by James A. Bacon

As a follow-up to my previous post, yes, honest liberals do exist. One of them is Michael Zuckerman writing in Atlantic Cities, who squarely confronts the reality that Democratic congressional districts experience far more income inequality overall than Republican congressional districts. He compiled the chart above which shows the Gini coefficient, a measure of income inequality, for all 435 seats in the House of Representatives. Concludes Zuckerman: “As the data show, Democrats have a lock not only on the country’s richest districts but also on the districts with the highest in-district income inequality.”

He then advances an interesting hypothesis: “Considered alongside these well-established trends, the fact that Democrats represent districts that are (on average) more unequal than Republican districts suggests that the parties may have such divergent views on income inequality in part because their members (and constituents) have divergent experiences of income inequality.”

In a way, that’s a breakthrough concept because it attributes Republicans’ policy views not toward callous, unfeeling attitudes towards the poor or to racism — the main rhetorical thrust of the national Democratic Party rhetoric and its media allies these days — but to their different life experiences. Democrats are more sensitive to income inequality because they experience it more glaringly in their daily lives; Republicans are less sensitive because they see less of it.

There is, of course, one other possible explanation: Income inequality is worse in Democratic districts because Democratic districts tend to be governed at the state and local level by… Democrats. And, just as I argued in the previous post that Democratic policies lead to increased segregation as an unintended consequence, they also lead to more income inequality as an unintended consequence. Food for thought.

There is good news for Democrats — Virginia Democrats, at least — in Zuckerman’s data. The national trend aligning Democrats with inequality does not hold true in Virginia — the average Gini for three Dem districts, .429, is a hair lower than that for the eight GOP districts, .434. Indeed, the fifth most income-egalitarian district in the country is Virginia’s 11th, represented by Democrat Rep. Gerald Connolly!

income_inequality_va

Trickle-Down Economics Revealed

Who's laughing now?

Who’s laughing now?

by James A. Bacon

A generation ago, liberals mocked the so-called “trickle-down economics” of the Reagan administration, the idea that creating wealth for the rich would trickle down to the less affluent by way of expanded economic activity. While Reagan himself never used that term, his economic philosophy of tax cuts, tax-code reform and restrained federal spending did work as advertised. The 1980s were a period of great prosperity in which all income groups and ethnicities shared. The irony is that the trickle-down economics is a label more aptly applied to the policies of President Barack Obama. During O’s five years in office, the rich have gotten richer while the poor have fed on scraps. But you’ll never hear the term “trickle down” applied to Obama’s monetary policies.

There are many winners from the low interest rate policy implemented by the Federal Reserve Board with the full support of the Obama administration — most of them wealthy. One group is the “millionaires and billionaires” who benefit from rising stock and bond prices. Another is the owners of mortgages who have refinanced their debt at lower interest rates, in many cases saving hundreds of dollars a month. Needless to say, those with the highest incomes who can afford the most expensive houses benefit the most. The biggest beneficiary, of course, is the federal government, the world’s largest debtor, which saves on the order of $200 billion to $300 billion a year in interest payments on its $17 trillion debt. Finally, there is a modest trickle-down effect in the form of job creation in interest rate-sensitive industries like construction.

Of course, there are many losers, too — a mega-narrative that has gone largely unreported by the mainstream media. One group of losers is small business, which finds it more difficult to gain access to capital (it’s easier for banks to lend to the government). Another group consists of state and local governments whose retirement funds no longer generate the returns they were several years ago and now face chronic fiscal stress as they struggle to make up the difference. Fifteen years ago, for example, the Virginia pension system was fully funded. Today, even after major structural reforms, Virginia and its local governments still owe billions.

Then there are the little guys, especially the Baby Boomers who accumulated modest nest eggs to help support them in retirement. I have fulminated on this topic on and off since writing “Boomergeddon,” frustrated that the issue has drawn so little attention. But a Bloomberg News article published today in the Times-Dispatch (sorry, can’t find the link) shows the full dimension of the problem. Some key points:

A 65-year-old who wanted to pay for retirement with annuities tied to bonds needed 24% more wealth in 2013 than in 2005. National Bureau of economic Research President James Potera calculated in a research paper released in February. …

U.S. Treasury yields are at least 2 percentage points less than what they would be otherwise because of the Fed’s low-rate policies and stimulus programs, said William Ford, former Atlanta Fed president who wrote a 2011 paper estimating the impact on savers of monetary easing. That reduces their income by at least $280 billion annually, his analysis shows.

“The cost of low interest rates are being ignored,” Ford said. “It is killing savers, elderly savers who are living on life savings that have been conservatively invested.”

The Fed is engineering one of the greatest wealth transfers in American history — from the working-class and middle-class to the rich. The stock market has never been higher. Wall Street is doing better than ever. Bankers are still getting their big bonuses. And the little guys with meager savings are watching their pathetic little nest eggs lose value as inflation exceeds the income they can generate.

The extraordinary thing is that Obama then turns around and castigates the economic system for inequalities in wealth — the very same inequalities that he and former Fed Chairman Ben Bernanke (it’s too early to pin any blame on Janet Yellen yet) did to aggravate. Rather than undo the harm he has inflicted, Obama ask Americans to entrust him with even more power to “help” the poor and downtrodden. What I find mind-boggling is that this is not the delusion of a single man — it’s that liberals and leftists have so uniformly and gullibly bought into the delusion. They have become apologists for the very evil, income inequality, that they decry.

I suppose that’s inevitable. The political class always gravitates to “solutions” that entail the accumulation of more power for the political class. In Virginia, liberals’ idea is to expand the Medicaid entitlement, paid for the federal government with borrowed money. Why not? It’s “free” money. But it’s really not. Every billion dollars borrowed by the federal government requires more financial repression and more wealth transfer from savers to favored classes of borrowers, the foremost of which is the U.S. government. The favored classes do not include the poor and middle-class who rack up credit card debt, typically charges around 13% to 15%.

Liberals prattle about “social justice” and lobby for distractions like a higher minimum wage (which raises pay for some and destroys jobs for others) while aiding and abetting the trickle-down economics that leaves America’s less well-off with crumbs. The hypocrisy is almost too much to bear.

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.).