Democrat’s Senate Majority PAC heavily funded Doug Jones’ campaign
Highway 31, a mysterious super PAC that backed Democratic candidate Doug Jones and was the largest independent spender in the Alabama Senate race, spent millions attacking Roy Moore throughout the campaign season. But unlike other campaign spenders, the particular group refused to disclose who the donors were behind its multi-million ad buy until after Election Day. On Wednesday, it was revealed the PAC was heavily funded by the Democratic Senate Majority PAC, a group solely dedicated to building a Democratic majority in the U.S. Senate. Chris Hayden, spokesman for the Senate Majority PAC, told the Associated Press on Tuesday the group “predominantly funded” the Highway 31 PAC, which sent out advertising and mailings to help defeat Republican Moore. The PAC spent roughly $6 million in Alabama, according to Hayden.
Daniel Sutter: Happiness, prosperity and economic freedom
We frequently wish for a happy and prosperous New Year. As an economist, I know more about prosperity than happiness. Because economic freedom is closely related to prosperity, 2017 closed with some good news for Alabama. The Economic Freedom of North America report, published by Canada’s Fraser Institute, measures the freedom of markets in U.S., Canadian, and Mexican states and provinces. Alabama’s state freedom score in this December’s report increased slightly, from 6.9 to 7.0. Scores range from zero to ten, with larger numbers representing more freedom. Alabama ranks 24th among the states, right at the national average score. Economic freedom scores estimate how closely states or nations approximate the ideal of a free, unregulated market economy. The scores have allowed statistical testing of claims about markets, government, and prosperity. If free market economists are correct, then nations or states with more economic freedom should be more prosperous, controlling for other relevant factors. Many studies have now confirmed this relationship. Consequently, Alabama’s increase in economic freedom could boost growth. But the small increase reflects deviations in measured freedom, not the policies which state freedom scores track. Furthermore, the increase occurred in 2015, since data availability results in a two year lag. Prosperity, however, is not the only thing we care about, and is probably most important at the subsistence level. For thousands of years, human society persisted at this level, with everyone engaged in growing or gathering food for survival, and famine never far away. The developed nations long ago moved past the subsistence level. So now perhaps we should place greater emphasis on dignity, fairness, and happiness than a somewhat higher standard of living. Prosperity allows individuals to be treated with more dignity. In tribes that followed the animals they hunted, the old or infirm might have to be turned out. This cruelty was born of economic necessity: tribes struggling to survive could not afford to be slowed down or feed people unable to contribute. Economic freedom might boost prosperity, but what about fairness and happiness? Freedom also correlates with these values. Fairness means different things to different people, but one factor is whether the least well-off benefit from prosperity. Purchasing power parity adjusted measures of income provide the best international comparison of standards of living by adjusting for what income buys and not just exchange rates. The evidence is clear: the poorest are far better off in nations with more economic freedom. The Fraser Institute’s Economic Freedom of the World report sorts countries into quartiles based on their national economic freedom. The incomes of the bottom ten percent of households are ten times higher in the freest nations than the bottom quartile, and more than double the incomes of the bottom ten percent in the second freest quartile of nations. Inequality has become a contentious issue in the U.S. Whether the distribution of income or wealth should be equal is a challenging question, but the comparisons of nations’ poorest households demonstrate that poverty in the U.S. and other developed nations is relative, not absolute. Perhaps income should be more equally distributed, but America’s poor enjoy a very decent standard of living from an international perspective. Can happiness be measured? I am skeptical, but survey questions developed by psychologists seem to elicit happiness levels reasonably well. The United Nations has been measuring happiness worldwide since 2012. And the quartile of countries with the most economic freedom has significantly higher reported happiness than the other quartiles of nations. A link between economic freedom and happiness makes sense. Freedom allows people to shape the course of their lives. Although freedom does not guarantee good choices, being forced to do something you do not like seriously reduces happiness. So perhaps economists have something to say about happiness after all. Still, I do not plan to start giving out life advice. But I will wish everyone a happy and prosperous 2018! ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
Alabama experiences significant flu activity this season
If you haven’t already gotten the flu shot yet, you may want to consider going out and getting one —according to the Alabama Department of Public Health (ADPH) influenza is on the rise across the Yellowhammer State. While the flu season is just getting started in much of the country, activity is already elevated in Alabama with providers reporting 3.59 percent of outpatient visits due to influenza-like illness. Flu is a very contagious respiratory illness that usually comes on suddenly. Symptoms often include: Fever* or feeling feverish/chills Cough Sore throat Runny or stuffy nose Muscle or body aches Headaches Extreme fatigue (tiredness) Some people may have vomiting and diarrhea, though this is more common in children than adults. * Not everyone with flu will have a fever. “Providers reporting increased percentages of patients with influenza-like illness and influenza samples sent to public health provide an indication of the geographic spread of influenza in Alabama,” said Dr. Karen Landers, District Medical Officer. “This is concerning because influenza can be a serious disease for anyone, even children, pregnant women, and previously healthy young adults.” An annual influenza vaccination is recommended for everyone 6 months and older and is the best prevention against getting the flu. Physicians, pharmacists and county health departments can provide flu vaccinations for Alabamians. Request the “quadrivalent vaccine,” the one that protects against four influenza strains, because one of the strains in circulation in Alabama (Type B/Yamagata) is only included in the quadrivalent vaccine. In addition to taking the flu vaccine, other measures can reduce or prevent the spread of influenza. These include: staying at home when sick; covering the mouth and nose with a tissue/cloth when coughing or sneezing; and washing hands or using hand sanitizer frequently. “Even healthy people can get very sick from the flu and spread it to others. It’s not too late to get a flu shot to protect against this serious disease. People become protected about two weeks after receiving the vaccine,” said Dr. Landers.
Southern Research’s Prosperity Fund brings new growth approaches to Alabama’s coal region
Southern Research’s Prosperity Fund is working to create jobs and boost economic activity in Alabama’s coal region by developing big ideas while always thinking small — small business, that is. The Prosperity Fund’s efforts in Walker, Fayette, Tuscaloosa and Jefferson counties concentrates on providing support to bedrock small enterprises and aspiring business owners in communities whose fortunes have long been tied to the coalfields. As the recognized heart of the nation’s jobs engine, small business should play a larger role in economic development efforts today, according to Corey Tyree, Ph.D., a co-founder of The Prosperity Fund and a director in Southern Research’s Energy & Environment division. “For a long time, economic development has been about attracting large businesses to your region, and there was a good reason for that,” Tyree said. “But small businesses create two-thirds of U.S. jobs, and there are more things we can do to help them. “We want to help retain and grow existing small business and help create new ones,” he added. The Prosperity Fund, created with significant backing from the Appalachian Regional Commission (ARC), begins its work at a time when many Alabama coal-mining communities are showing signs of prolonged distress. Jobs lost in the coalfields aren’t being replaced quickly enough, and new businesses aren’t springing up to fully replenish the economic activity that’s slipped away. That the coal slump followed on the heels of “The Great Recession” just made matters worse. Alabama’s coal job losses have been heaviest in the four-county area, where some families have worked in mining for generations. The 2,505 coal jobs lost there between 2011 and 2016 represent 10 percent of all U.S. job losses in the sector. Challenging conditions Despite some stabilization this year, many in Alabama’s coal communities doubt the industry will ever regain its traditional role as an economic pillar and job creator in the area. “I don’t see the industry coming back to its heyday for two reasons – one is mechanization, which has reduced the need for the headcount that mines used to have, and the second is that natural gas prices are just overly competitive compared to coal,” said Paul Kennedy, president of the Walker Area Community Foundation in Jasper. Fayette County Probate Judge William Oswalt said economics are working against a comeback for coal mining. “It’s going to be hard to convince a group of investors to come in and spend $700 million or $800 million to develop a coal mine,” Oswalt said. “I’m not hopeful.” Coal mining has long played an important role in the region served by the Prosperity Fund. In 1997, Jefferson County alone produced 10.4 million tons of coal, making it one of the Top 15 coal-producing counties in the U.S., according to ARC data. Coal jobs were plentiful that year. Jefferson County had 2,052 coal miners, while Tuscaloosa County had 1,750, the ARC data says. Coal mining jobs numbered 750 in Walker County and 375 in Fayette County. The region looks a lot different today. As this year began, Jefferson County had 1,198 coal miners, a 42 percent decrease in one generation. Tuscaloosa County’s coal miners totaled 397, a decrease of 77 percent. Walker County’s total dropped slightly to 644, according to ARC data. Fayette County, meanwhile, has lost all its coal mining jobs. A mine closes The harsh blow fell on Fayette County in 2013, when Walter Energy shut down its North River Mine near Berry, saying its coal reserves were running low after 40 years of operation. Some of the 320 or so miners were able to transfer to other Walter mines in Tuscaloosa, but many of them simply saw their paychecks come to an end. “We had people who were making $60,000 or $70,000 a year digging coal, with benefits, with retirement, lose their jobs,” Oswalt said. The pain is still being felt. Today, he said, some of these miners remain out of work after decades in the mines because employers see them as too old to start a new career and unwilling to accept wages that fall short of the pay of the lost mining jobs. The closing of North River Mine also delivered a devastating blow to the finances of Fayette County, wiping out coal severance tax revenue that brought in $500,000 for the county’s general fund annually, Oswalt said. “It’s been brutal. We have absolutely no means of replacing that. Zero. We had been drawing that revenue for the last 30 years,” he said. “You wake up one morning, and it goes to nothing.” When Walter closed the North River Mine, the company planned to invest $1.2 billion in a massive new mining operation that would open by 2019 with 450 jobs in northeast Tuscaloosa County. That project died, and Walter slid into bankruptcy. Blueprint for recovery The kind of concentrated job losses affecting Fayette County have magnified the coal downturn’s negative effects in many Alabama communities, adding to challenges that were already present. For one thing, wages have been lagging in much of the four-county area. Fayette County’s per capita income in 2014 was $19,356, only slightly more than half of the U.S. average. Walker County’s figure of $25,993 was 78 percent of the national average, according to data from the Economic Innovation Group, a bipartisan public policy organization. Another challenge is that entrepreneurial activity is low through much of Alabama’s coal region, which creates a negative cycle in a struggling community. With few new businesses being formed in these communities, economic fragility increases and some residents depart for areas offering more opportunity. So the big question is: How can Alabama’s coal country bounce back from a devastating downturn that appears lasting? Tyree believes the answer lies with new approaches to help small businesses in the region become healthier. The Prosperity Fund’s focus is on helping nurture small businesses so they can grow and hire new workers, as well as lending support to get promising new ventures off the ground. It has hired a veteran entrepreneur, Steven Puckett, to work with businesses in the region. The initiative will
Steve Flowers: Year end tradition — remembering those we’ve lost
At the close of each year, my tradition is to acknowledge the passing away of significant political leaders from the political stage in our beloved state. We lost some icons this year. As I sit in my office writing this yearend column, pictures of two of my favorite friends and legends adorn my walls. The photos of GovernorAlbert Brewer and Congressman Jim Martin look down at me. Both were Christian gentlemen. Governor Brewer passed away last January in Birmingham. He was 88. We had visited over lunch only a few months earlier. Brewer grew up in Decatur, went to public schools and graduated from the University of Alabama and Alabama Law School. He came back home to Morgan County to practice law. He was quickly elected to the House of Representatives in 1954 at the age of 25. Eight years later in 1962, he was elected Speaker of the House. He was only 33-years old, the youngest Speaker in history. Four years later, he beat two state senators without a runoff to win the Lt. Governor’s office. He had been Lt. Governor for less than two years when in May 1968, Governor Lurleen Wallace succumbed to cancer and he became governor. Brewer had a low-key business-like style to the governor’s office that was dramatically different from George Wallace. He was governor for only 33 months, but he left an indelible mark in public policy, primarily in Education and Ethics. He and Wallace clashed in the 1970 governor’s race, which was one of the classic gubernatorial battles in state history. He led Wallace in the first primary, but Wallace overtly played the race card and pulled out a narrow victory in the runoff. Many scholars and historians sadly reflect that Brewer briefly was our “New South” governor. He spent the last three decades of his life teaching law at Samford’s Cumberland Law School. He molded generations of young lawyers in Alabama. My daughter, Ginny, was one of them. He was her mentor and friend up until he passed away. I first met Governor Brewer when I was a teenager. I became a page for him when he was Speaker and continued as his aide when he became Lt. Governor. We remained friends throughout the years. He was a very special gentleman. Jim Martin passed away last month. He was 99 years old. He was a lifetime resident of Gadsden. Jim was one of the fathers of the modern Republican Party in the South. He was one of five Republicans swept into Congress in the 1964 Goldwater landslide. In 1987, Martin became Commissioner of the Alabama Department of Conservation and Natural Resources. As commissioner, Martin helped create the Forever Wild Land preservation program. Jim Martin was a special gentleman. Cullman County has been home to an inordinate number of legendary Alabama political leaders and icons. One of these was Tom Drake. Tom passed away in his beloved Cullman County in February at age 86. He represented the Cullman area for 36 years in the Alabama Legislature. He served as Speaker of the House of Representatives during Wallace’s last term, 1982-1986. That was my first term in the House. I voted for and supported Tom for Speaker. He was one of George Wallace’s closest and most loyal allies. Tom was also one of Bear Bryant’s favorites. He coached for Bryant, was an All American wrestler at Alabama, and later wrestled professionally. He was a lawyer by profession and he came from the old school. If he shook your hand and gave you his word, you could take it to the bank. He was a loyal and trusted friend. Another legendary Speaker of the Alabama House of Representatives, Joe McCorquodale, died in April at age 96. Mr. McCorquodale was one of the most powerful and respected men to ever serve in the legislature in Alabama history. He served 24 yeas in the House from 1958-1982. He was Speaker of the House his last eight years, 1974-1982. He was a successful businessman. He was in the timber and insurance business. He lived his entire life in his beloved Clarke County. The Clarke County Democrat publisher, Jim Cox, a lifetime friend of Mr. McCorquodale, said he went to his office every day up until his death. McCorquodale gave current governor, Kay Ivey, her first job in state government. As Speaker, he made Kay the Reading Clerk in the House. We lost some icons this year. Happy New Year, see you next week. ••• Steve Flowers is Alabama’s leading political columnist. His weekly column appears in over 60 Alabama newspapers. He served 16 years in the state legislature. Steve may be reached at www.steveflowers.us
