One of the big undermining mechanisms has to do with the free rein that the financial sector increasingly has. I’m talking about venture capital, private equity, investment banks, institutional investors like my pension fund. They’re under increasing pressure to generate big returns, sometimes because they need them to cover their risky bets. These investors acquire “troubled” companies, load them up with debt, dismember them and sell off pieces. If there’s a union, they figure out a way to crush it. Then they cash out. They have a short-term orientation, but the damage to communities is very long-term and hard to reverse. One of the insidious things about financialization is its invisibility to the people most negatively impacted by it.
DY: Can the desecration of rural communities be chalked up to technological and cultural progress, or were there choices along the way that could have spared the economies of sparsely populated places without sacrificing economic growth?
ME: There’s a lot of questioning of economic growth these days, mostly because people understand that the obsession with growth is one element that fuels the climate catastrophe and is killing the planet. But even if we imagine an economy that optimizes, say, people’s wellbeing rather than corporate or individual profits, or happiness, or some other desirable outcome, we can see that along the way other choices would have helped.
Progressives often bemoan the policies of the Reagan administration, which are rightly seen as unleashing neoliberalism in the United States. But Bill Clinton’s administration also has a historic responsibility for policies that contributed to rural decline. NAFTA (North American Free Trade Agreement) sent many jobs to Mexico and created a perception that the Democratic Party didn’t care about rural people or the working class. It gave corporations rights to sue in dispute panels, alleging that environmental, labor and health standards were unfair, non-tariff barriers to trade.
The repeal of the New Deal-era Glass-Steagall ban on investment banks offering everyday financial services spurred speculation and consolidation and led to the disappearance of many local savings banks that had lent to nearby businesses and kept wealth circulating in their communities. Banking deregulation led private equity and other investors to play games with leveraged buyouts that accelerated deindustrialization and with mortgage-based derivatives that ultimately produced a major economic crisis and millions of housing foreclosures. The 1996 Farm Bill ended most supply management and crop price floors, generating gluts that undermined farmers and constituted a handout to giant commodities brokers like Cargill and ADM.
Many other policy choices reflected the interests of powerful actors. Industrial agriculture is propped up with numerous upstream and downstream, direct and indirect subsidies. We taxpayers are covering that, and the externalized costs of industrial ag show up in our cancer rates, drinking water, novel zoonotic diseases, and myriad other negative effects. Much of the corn grown in the United States is for biofuel to “feed” vehicles. The productivist “we must feed a hungry world” narrative is mistaken and myopic, but Big Ag lobbies have deep pockets for promoting it and politicians know this, whether they buy the discourse or not.
It was a choice, or really many interlinked choices, to favor large-scale monocropping over the diversified small farm, with its synergies between livestock and crop production. It was a choice to favor investment banks over credit unions and mutual savings banks. The productivist approach has become so much a part of our common sense that it requires real imagination to conceive of alternatives and political will to implement them. With an unfolding climate catastrophe and the imperative of reducing greenhouse gas emissions, those alternatives become ever more urgent.
DY: Is the main argument against the geographic sacrifice you describe the fact that it creates a noxious political culture, or is greater geographic equality virtuous in itself?
ME: Today’s noxious political culture is in part the result of sacrificing rural people and communities on the altar of capital. But it’s also important to recognize that many of those noxious aspects — violent nationalism, white supremacy, anti-immigrant sentiment, misogyny, anti-democratic ideologies — have deep historical roots and multiple causes.
Uneven development, whether that’s across social classes or regions, is inherently destabilizing. One of the weirdest aspects of contemporary U.S. uneven development is that it is precisely those regions where hatred for the federal government and exaggerated fantasies about self-sufficiency are most widespread which receive vastly more in federal support than they pay in taxes. But like invisible financialization, this federal support — Medicaid, Medicare, unemployment insurance, disability, social security for aging populations, childcare tax credits, SNAP, agricultural subsidies, highway and education programs, and so on — is mostly below people’s radar and isn’t appreciated.
Uneven development always implies an immense loss of human potential. Groups and individuals that suffer social exclusion — whether based on class, race, gender, or geography — can’t realize their full potential. This sacrifice has immense costs for any society — in scientific discoveries that don’t get made, in beautiful books that don’t get written, and so on. That’s one rather instrumental reason why greater equality is an ethical imperative. There are also, of course, rights-based arguments that are even more compelling.
DY: Placing the blame for rural decline at such a high level as the structure of the economy feels to me — someone from a struggling southern Illinois coal town — both vindicating and hopeless. What are the prospects for local, grassroots change if the forces which shrunk the high school and shuttered the churches are global and technocratic in nature?
ME: When we think about rural decline and sacrifice zones one of the biggest problems is the way multiple forces have drained wealth out of communities. The institutions that once facilitated wealth circulation within and around communities — producers’, consumers’ and service providers’ cooperatives, credit unions, mutual savings banks, locally owned businesses — have weakened over the years. People can organize to take back value-added that now gets taken away by far-off investors, though this requires a kind of local-level solidarity that isn’t always easy to muster. It’s the ongoing struggle of society against the market and it’s happening in a lot of places. Scaling up successful efforts and resisting pushback by self-interested powerful actors are among the most formidable challenges.
See guys? We're FBA (Funky Blonde Aryan Americans) too!!!
inthesetimes.com
DY: Can the desecration of rural communities be chalked up to technological and cultural progress, or were there choices along the way that could have spared the economies of sparsely populated places without sacrificing economic growth?
ME: There’s a lot of questioning of economic growth these days, mostly because people understand that the obsession with growth is one element that fuels the climate catastrophe and is killing the planet. But even if we imagine an economy that optimizes, say, people’s wellbeing rather than corporate or individual profits, or happiness, or some other desirable outcome, we can see that along the way other choices would have helped.
Progressives often bemoan the policies of the Reagan administration, which are rightly seen as unleashing neoliberalism in the United States. But Bill Clinton’s administration also has a historic responsibility for policies that contributed to rural decline. NAFTA (North American Free Trade Agreement) sent many jobs to Mexico and created a perception that the Democratic Party didn’t care about rural people or the working class. It gave corporations rights to sue in dispute panels, alleging that environmental, labor and health standards were unfair, non-tariff barriers to trade.
The repeal of the New Deal-era Glass-Steagall ban on investment banks offering everyday financial services spurred speculation and consolidation and led to the disappearance of many local savings banks that had lent to nearby businesses and kept wealth circulating in their communities. Banking deregulation led private equity and other investors to play games with leveraged buyouts that accelerated deindustrialization and with mortgage-based derivatives that ultimately produced a major economic crisis and millions of housing foreclosures. The 1996 Farm Bill ended most supply management and crop price floors, generating gluts that undermined farmers and constituted a handout to giant commodities brokers like Cargill and ADM.
Many other policy choices reflected the interests of powerful actors. Industrial agriculture is propped up with numerous upstream and downstream, direct and indirect subsidies. We taxpayers are covering that, and the externalized costs of industrial ag show up in our cancer rates, drinking water, novel zoonotic diseases, and myriad other negative effects. Much of the corn grown in the United States is for biofuel to “feed” vehicles. The productivist “we must feed a hungry world” narrative is mistaken and myopic, but Big Ag lobbies have deep pockets for promoting it and politicians know this, whether they buy the discourse or not.
It was a choice, or really many interlinked choices, to favor large-scale monocropping over the diversified small farm, with its synergies between livestock and crop production. It was a choice to favor investment banks over credit unions and mutual savings banks. The productivist approach has become so much a part of our common sense that it requires real imagination to conceive of alternatives and political will to implement them. With an unfolding climate catastrophe and the imperative of reducing greenhouse gas emissions, those alternatives become ever more urgent.
DY: Is the main argument against the geographic sacrifice you describe the fact that it creates a noxious political culture, or is greater geographic equality virtuous in itself?
ME: Today’s noxious political culture is in part the result of sacrificing rural people and communities on the altar of capital. But it’s also important to recognize that many of those noxious aspects — violent nationalism, white supremacy, anti-immigrant sentiment, misogyny, anti-democratic ideologies — have deep historical roots and multiple causes.
Uneven development, whether that’s across social classes or regions, is inherently destabilizing. One of the weirdest aspects of contemporary U.S. uneven development is that it is precisely those regions where hatred for the federal government and exaggerated fantasies about self-sufficiency are most widespread which receive vastly more in federal support than they pay in taxes. But like invisible financialization, this federal support — Medicaid, Medicare, unemployment insurance, disability, social security for aging populations, childcare tax credits, SNAP, agricultural subsidies, highway and education programs, and so on — is mostly below people’s radar and isn’t appreciated.
Uneven development always implies an immense loss of human potential. Groups and individuals that suffer social exclusion — whether based on class, race, gender, or geography — can’t realize their full potential. This sacrifice has immense costs for any society — in scientific discoveries that don’t get made, in beautiful books that don’t get written, and so on. That’s one rather instrumental reason why greater equality is an ethical imperative. There are also, of course, rights-based arguments that are even more compelling.
DY: Placing the blame for rural decline at such a high level as the structure of the economy feels to me — someone from a struggling southern Illinois coal town — both vindicating and hopeless. What are the prospects for local, grassroots change if the forces which shrunk the high school and shuttered the churches are global and technocratic in nature?
ME: When we think about rural decline and sacrifice zones one of the biggest problems is the way multiple forces have drained wealth out of communities. The institutions that once facilitated wealth circulation within and around communities — producers’, consumers’ and service providers’ cooperatives, credit unions, mutual savings banks, locally owned businesses — have weakened over the years. People can organize to take back value-added that now gets taken away by far-off investors, though this requires a kind of local-level solidarity that isn’t always easy to muster. It’s the ongoing struggle of society against the market and it’s happening in a lot of places. Scaling up successful efforts and resisting pushback by self-interested powerful actors are among the most formidable challenges.
See guys? We're FBA (Funky Blonde Aryan Americans) too!!!

The 40-Year Robbing of Rural America
Since the 1980s, says Professor Marc Edelman, financial capital has developed imaginative new ways to seize assets from small towns and rural areas.
