Posted tagged ‘Tim Cullen’

Abandoned Mine Ahead

November 30, 2015

A few weeks ago, The Financial Times reported that  the price of steel rebar (the reinforcing rods used in concrete construction) had plunged to a record low on the Shanghai futures market. And the price of iron ore had dropped as well, meaning that mining companies would likely cut production.

That was bad news for the Wisconsin economy. The Badger State has a substantial — but struggling — mining equipment industry in the Milwaukee area.

More to the point, the cooling of the Chinese economy is a major reason why the pipe dream of a revived iron ore mining in northern Wisconsin quickly burst. I examine the flawed thinking of the mine promoters  — notably Gov. Scott Walker and the business group Wisconsin Manufacturers & Commerce–in a piece for Isthmus.

 

Thomas Power, 75, an emeritus natural resources economist at the University of Montana, has studied mining for almost 50 years. He chuckled and said “certainly not” when I asked him in a phone interview if mining iron ore in northern Wisconsin was a good bet for producing jobs and wealth.

“Mining in the United States hasn’t been a growth center or a source of regional prosperity for at least a half century,” he says. “Just look across the country. When was the last time the Iron Range in Minnesota was prosperous? Or the last time when Butte, Montana, was prosperous? Or the Appalachian coal fields? Or the Ozark lead fields? Or the Arizona copper towns?”

The only contemporary success story he could cite was gold mining in the middle of nowhere Nevada, where the workers commute to work.

Reality is that mining operates on a recurring boom-and-bust cycle, he notes, and the bounce-backs are inevitably fueled, in part, by technological advances that reduce the workforce.

Mining jobs, as a result, has been greatly reduced. “It’s like agriculture,” Power says. “The rural Great Plains is losing people. Its not because we’re producing less and less wheat. It’s because we need almost no people to produce the wheat. It’s the same with mining.”

“It’s hard to imagine how some sort of sustainable prosperity can be built around an industry of that sort,” he adds. “That’s not badmouthing mining. That’s just the facts of the matter.”

To read more, please go here.

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When Politics Wasn’t So Nasty

September 16, 2014

I’ve written before about Gov. Pat Lucey remaking the Wisconsin Democratic Party and overhauling state government.  I jumped at the chance when WisPolitics.com asked me to cover a memorial service at the Capitol honoring Lucey’s accomplishments. Here’s a chunk of it:

…[I]t was Tommy Thompson, the state’s longest-serving governor, who seemed to capture the moment and draw the biggest applause. He started his speech by saying: “I’m a Republican.” Then pausing for dramatic effect, he added, “Pat Lucey was my friend.” 

In a booming, passionate talk, Thompson explained how he identified with Lucey because they were both Irish Catholic boys and the sons of small-town Wisconsin grocers. He said he kept Lucey’s official portrait hanging in the governor’s office, even though fellow Republicans were puzzled by it. 

“I kept the picture there, because I believed in the man. I wanted to show people the value of bipartisanship,” he said. 

Thompson, like Lucey, achieved some of his most important legislation through a politically divided Legislature. 

“It was the government of a different time, and it accomplished so much,” he said of the Lucey years. “These were civilized days when you could have friends on the other side of the aisle.” 

Democrats and Republicans could battle all day over a legislative proposal, he said, “but then we would go out for a steak and a beer.” 

The Capitol today is marked by “the politics of destruction,” Thompson said, “Pat Lucey never believed in that, nor did I.”

To read more, please go here. 


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