Among the “great calls” was a respected CEO who told me that many issues in MH are so complex, it makes the eyes of lots of industry professionals glaze over. The caller asked me to keep things as simple as possible, so more ‘get it,’ and based upon improved understating, they can act properly.
To make things more visual and easy-to-use, let’s use graphics below to compliment the written commentary and make big issues more manageable.
You can find the articles relating to each of the headlined items linked below. We know MH pros, investors, public officials, not-for-profits and others follow such stories by the thousands daily.
As important as these issues are, let’s step beyond them briefly to pull some threads together with graphics. These images and facts will tell a powerful tale that – once understood and acted upon – could raise our economy and industry to new record levels.
Chart: Wikipedia
USA Facts in Graphics
America became the number #1 nation on earth in production, finance and business; due in part to very modest regulations and simple taxes.
Bill Clinton as president famously said “the era of big government is over,” and later authored a book which advocated a more “partnership” approach between government and business. During a radio interview I heard about his book, former President Clinton suggested modeling what was working between business and government in Korea.
Whatever one thinks about President Obama and his administration, what is indisputable is that during his term, the U.S. federal government’s grown bigger than ever.
We also see routine headlines of often spectacular debacles in recent years. Examples:
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The billion dollar flawed roll out of the ACA (aka ObamaCare)
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Veterans Administration (VA) scandals
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The Secret Service in turmoil
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GAO’s lavish private parties
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Choking off lending with CFPB regulations, not only of MH, but also of conventional housing, business and other lending
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IRS targeting conservative groups
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Solyndra or other green energy scandals and failed programs
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The highest percentage of Americans outside of the workforce
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More on disability and various aid programs
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High unemployment, under-employment, more low wage jobs and most Americans are worse off now than 6 years ago
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Vast government debt and groggy deficits that add to the debt
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A foreign policy we keep hearing the president say is “surprised” by events (Benghazi, ISIS, Russia/Ukraine/Crimea, US Mexican Border, etc)
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…and White House statements that President Obama reads or hears about such issues in the media instead of federal reports, his classified daily briefs, etc..
Before proceeding, as an independent speaking only for myself, let me be clear: during President George W. Bush’s term, the surplus budget created by the Gingrich/Clinton reforms of welfare and entitlements in the 1990s was lost. President Bush’s so-called “Compassionate Conservatism” created new, unpaid for entitlements and programs. We entered a war in Iraq on what we were later told was “incorrect intelligence” reports. There’s debate on the question of problems which lead to the financial collapse of 2008; could the Great Recession of 2008 have been avoided?
Certainly there are examples in every presidency of serious mistakes made, so this isn’t about partisan finger pointing.
What all this does is make a simple point! Against that backdrop of such clear facts and evidence, why do so many have such great faith in government? Why?
Stop and think! Streamlining the federal tax and regulatory system –
as any number of economic and political leaders suggest –
could create a huge economic boom.
MHProNews cartoon.
Solidarity and Subsidiarity, not anarchy or oligarchy
There is a case to be made that the bigger government gets, the more abuse, waste and foul play there is.
In November 2014 elections, IMHO we have little choice but to look at the policies and outcomes of the last 5 years, and vote “no confidence” in those who passed those policies, administer and (sometimes…) enforce them.
But beyond November’s mid-term elections?
“Crony capitalism” works hand-in-hand with big government “socialistic” policies. The irony is that the crony capitalists are robbing from their own future, as well as that of the rest of us too.
The chart doesn’t necessarily imply cronyism, but
note these individuals are in both
Democratic and Republican political camps.
Chart source: ValueWalk.
Henry Ford made it possible for more people to have good jobs that improved their lives. Ford prospered, because many others did!
For all their bluster about “the top 1%,” this Administration goes to the billionaires and millionaires for their political fundraising. The top 1%, 3% and 10% got richer, while the rest of the nation got poorer.
Who is fooling whom?
What these charts also imply is there is no need to artificially hike minimum wages, which some claim would cost 500,000 jobs. What we need instead is to restore the robust demand for workers, which economic growth routinely produces! More demand for workers leads to higher pay. More working means fewer on public programs. Everyone in the mix benefits.
Federal policies are choking off small lenders, arguably harming
small business and job creation. Chart source: Face the Facts – George Washington University
Former SBA chief in the Obama Administration, Karen Mills’ report for Harvard says Credit is
still tight for Small Businesses.
Fortune Magazine points to MA and other states creating
Public Private economic partnerships.
Energy and Construction Jobs pay more than most jobs.
Domestic energy would reduce foreign oil dependence,
and low cost energy is good for business,
the working poor, everyone.
Infographic found on the Huffington Post website.
Housing is another major engine that drives economic growth and ‘good jobs’ creation.
In an era were incomes are down, rental rates are rising and there exists affordable housing shorterages in many markets, manufactured housing and modular home building must be key elements supported – or at least not impeded – by public policies! The case can be made that subsidizing rents is far more costly for federal, state and local budgets than supporting the ownership of quality, appealing, safe, energy saving and durable manufactured homes.
Energy independence would fuel more domestic manufacturing, creating
more direct and indirect higher paying jobs. This would reduce social welfare
program spending. It also reduces dependance on oil from foreign nations.
We may never eliminate the need for some entitlements, but by creating more
high pay jobs, while reducing energy costs which harm the poor disproportionally,
the U.S. could rapidly move back to the kinds of surplus budgets enjoyed during the
bi-partisan efforts created by Gingrich-Clinton and others in the booming 1990s.
Source National Association of Manufacturers study
on economic impact and costs of regulations.
Let’s point to some commentary from Ron D’Ambra, who has said in an earlier column, that HUD regulations can and do benefit the industry, and then emphasize that what our goals should be in fair, common sense regulations
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that protects the consumer,
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does not needless drive up costs,
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does not fall too heavily on independent producers,
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and gives the consumer more confidence in our homes, knowing these quality standards exist!
Will HUD’s program under Pam Danner’s leadership advance – or at least, not harm – the cause of manufactured housing?
The CFPB may have the power to choke off potentially tens of thousands of MH loans, but only while harming millions of MH home owner values, especially those under $25,000. But do they understand that by troubling our industry and home owners, they are creating negative ripples that will cost federal, state and local budgets far more?
Wack-a-mole?!
Why are we playing federal wack-a-mole? We hit one problem, another pops up! Instead of repeating the same mistakes, lets look at how the game is played!
Let’s get to the root causes, and correct them. That’s what the charts above point to, that our economy could be roaring ahead, and we could be reducing debts and heading back to budget surpluses if we had smarter government. That requires elected and appointed leaders willing to make these a priority, knowing it rapidly benefits everyone mid to long term.
Applying the right principles is more important than party labels. Not only in MH, but other industries and professions, are essentially begging bureaucrats we pay with taxes and borrowed dollars to allow us to legally do today what was legal before! Hello?
Solidarity means to stand with others, and in unity to achieve good goals.
Subsidiarity means to make government and decision making as local as possible.
Anarchy is the opposite of big government – both are extremes!!
When we restore the private/public balance in the middle and follow smart policies, we’ll see a robust economy return. That will help manufactured housing, our customers and the nation as a whole.
Against that backdrop, here are the links to articles and commentary referenced in the headline above. We do have to keep working on these linked issues and others, but let’s not lose sight of the root causes of our problems! As these charts and graphics demonstrated, we can regrow our economy, benefiting virtually all Americans and businesses in the process. ##
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MHI’s response to the CFPB report, with CFPB Report download
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GAO report, with related info and downloads (Please note, this report seems more fair and balanced towards MH than the CFPB’s.).
