Category Archives: Business and economics

Arkansas, don’t be like Great Britain

By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.

In a democracy, any discussion of “Should we do something?” should also answer “How will we do it?” Otherwise, we start looking like Great Britain does now.

That country didn’t answer both questions regarding “Brexit,” and now it’s a mess.

On June 23, 2016, British voters were asked simply, “Should the United Kingdom remain a member of the European Union or leave the European Union?” Fifty-two percent said “Leave.”

Several factors played into the result. Voters wanted to maintain British sovereignty and identity in a country that never adopted the euro. Many opposed the EU’s open borders and immigration policies. The older the voters were, the more likely they were to support Brexit.

You might say they wanted to make Britain great again. Continue reading →

With that big hog farm, it was time to fold ‘em

By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.

June 20, 2019

If you’re a red-blooded Arkansan, you know what words follow these: “You’ve got to know when to hold ‘em, know when to …”

In “The Gambler,” it’s “fold ‘em.” In politics and the legal environment, it sometimes is “settle,” as I’m sure Gov. Asa Hutchinson knows, along with the owners of C&H Farms.

Hutchinson and the farm owners realized it was time to walk away before it came time to run. So that’s what both sides did with an agreement to close that big hog farm near the Buffalo National River.

Hutchinson announced June 13 that the state would pay Richard and Phillip Campbell (the “C”) and Jason Henson (the “H”) $6.2 million to close the concentrated animal feeding operation located 6.6 miles from Big Creek, which flows into the Buffalo National River. Of that, at least $5.2 million will come from the taxpayers, with the rest coming from private donations through The Nature Conservancy. Continue reading →

Cold War’s end: No parade, but maybe a museum

By Steve Brawner

© 2019 by Steve Brawner Communications, Inc.

May 28, 2019

One of the United States’ greatest military successes came after it barely fired a shot at its enemy, and now the city of Blytheville has decided somebody ought to mark the occasion.

That success came in the Cold War, the defining conflict of my generation.

For more than 40 years, the United States and the Soviet Union stared across the oceans at each other, missiles at the ready. As a boy, I had nightmares about nuclear war.

We’ll never know how close it came. One example: In 1983, a Soviet computer system mistakenly detected a launch of five U.S. missiles. Lt. Col. Stanislav Petrov’s skepticism (Why would the Americans fire only five missiles?) may have saved the world from accidental nuclear war.

Arkansas had its own near-nuclear accidents. As reported by historian Tom Dillard in the Arkansas Democrat-Gazette, the state was home to 18 Titan II missile complexes. One complex near Pangburn burned in 1965 in an accident that killed 53 of the 55 contract maintenance workers inside. The missile remained unaffected. Continue reading →

Economy slowing but growing; debt just growing

By Steve Brawner,

© 2019 by Steve Brawner Communications, Inc.

May 21, 2019

No one can predict the future, and that includes economists. So I’m simply going to tell you what a really smart guy said, and you can do with it what you will.

The smart guy was Bob Costello, the American Trucking Associations’ chief economist. He was in Little Rock May 16 to speak to the Arkansas Trucking Association. I should tell you I do some freelance writing for publications produced by both associations.

That stuff out of the way, here’s what he said: The economy is “slowing, but we’re still growing.” Costello does not expect a recession until 2021 or later.

If he’s right – sorry, Democrats. You can still beat President Trump, but you’ll have to do so in the face of a decent economy. No one should hope for bad economic news as a way to win an election, anyway. But if you were, you wouldn’t be the first. Continue reading →

About that record low unemployment rate

Dr. Michael Pakko

Dr. Michael Pakko speaks to engineers Nov. 7 about the state’s economy.

By Steve Brawner, © 2018 by Steve Brawner Communications, Inc.

Economics has been called the “dismal science,” so leave it to an economist to offer a dose of reality regarding Arkansas’ “record low unemployment rate.”

That rate is 3.5 percent, the lowest ever measured and one that is slightly lower than the national 3.7 percent rate.

Elected officials understandably brag about those numbers because they are much better than in the recent past – particularly October 2009, when 10 percent of Americans were unemployed. The Great Recession supposedly had ended in June that year, but nobody knew it – certainly not those 10 percent.

Dr. Michael Pakko, chief economist and state economic forecaster at the University of Arkansas at Little Rock’s Institute for Economic Advancement, offered a different take during his annual economic forecast Nov. 9. I heard him speak a couple of days earlier to an engineering association.

Pakko, whose overall forecast was positive, particularly regarding the next two years, is looking at another number – the labor force participation rate.

It tells us more. The unemployment rate measures only workers with a job or looking for one. The labor force participation rate includes people who aren’t trying to find one. Continue reading →