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Kansas and Wichita quick takes: Thursday May 19, 2011

Kansas growth clusters. H. Edward Flentje, Professor at the Hugo Wall School of Urban and Public Affairs at Wichita State University: “For starters, the Brownback economic plan sends a mixed message; it argues against state policies that target incentives to the lucky few but then proceeds to target individuals moving to ‘rural opportunity zones’ for special income-tax breaks and payoffs of student loans.” The hope of the governor is that counties that have been losing population can be revived. But Flentje tells of the difficulties these rural counties face: “Rural Kansas relies much more heavily on state and federal assistance, and the cost of delivering essential public services to sparsely populated areas is substantially higher. Brownback’s preferred counties will be hammered disproportionately by his reductions in school finance and social services, and the limited amenities available in these areas will be further diminished by his cuts in public broadcasting and the arts, among other programs.” … The nostalgia for the glory days of small-town Kansas may not be in our best interests. In his paper Embracing Dynamism: The Next Phase in Kansas Economic Development Policy, which has influenced Governor Brownback’s economic policy, Dr. Art Hall wrote that productivity, which should be our ultimate goal, is related to population density: “Productivity growth is the ultimate goal of economic development. Productivity growth — the volume and value of output per worker — drives the growth of wages and wealth. Productivity growth results from a risky trial and error process on the front lines of individual businesses, which is why Kansas economic development strategy should focus on embracing dynamism — a focus virtually indistinguishable from widespread business investment and risk-taking. Productivity growth tends to happen in geographic areas characterized by density. This pattern shows up in Kansas. The dense population centers demonstrate superior productivity growth.”

Obamacare waivers go to Pelosi district. From Daily Caller: “Of the 204 new Obamacare waivers President Barack Obama’s administration approved in April, 38 are for fancy eateries, hip nightclubs and decadent hotels in House Minority Leader Nancy Pelosi’s Northern California district. … Pelosi’s district secured almost 20 percent of the latest issuance of waivers nationwide, and the companies that won them didn’t have much in common with companies throughout the rest of the country that have received Obamacare waivers.”

SRS chief to speak in Wichita. This Friday (May 20) the Wichita Pachyderm Club features Robert Siedlecki, who is Secretary of Kansas Social and Rehabilitation Services (SRS). His topic will be “The SRS and Initiatives.” The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club. … Upcoming speakers: On May 27, Todd Tiahrt, Former 4th District Congressman, on the topic “Outsourcing our National Security — How the Pentagon is Working Against Us.”

Kansas welfare money gets around. From NBC Action News: “At a time when the number of people relying on public assistance continues to grow, millions of dollars worth of Missouri and Kansas welfare money is being spent all over the country, including states like California and Florida, and even as far away as Hawaii and Alaska.” Kansas funds were withdrawn from ATM machines on and near the Las Vegas gambling district, and there were “back-to-back withdrawals totaling $363 at a Disney World gift shop.” Kansas Watchdog’s Earl Glynn contributed to the NBC story, and offers his own reporting at Kansas out-of-state Electronic Benefit Transfer payments .

Kansas Bioscience Authority contract. Kansas Watchdog: “Tom Thornton’s contract as president of the Kansas Bioscience Authority shows a total pay, bonus and benefit package potentially worth more than $463,200 for fiscal year 2010. That’s more than four times Governor Sam Brownback’s $99,636 salary and $63,200 more than President Barack Obama’s salary. Media reports pegged Thornton’s pay and bonus at about $365,000, but a copy of his contract obtained through multiple sources by KansasWatchdog shows several incentive opportunities and a full breakdown of benefits.” … Thornton resigned from his position in April under criticism from legislators, and the local district attorney is conducting an investigation into unspecified matters. The legislature passed a bill divorcing funding of a federal project in Kansas from the KBA, so that questions about the KBA’s activities don’t jeopardize this funding.

Medicare reform explained. A video from Center for Freedom and Prosperity Foundation features Dan Mitchell explaining the necessity for reform of Medicare, and how it should proceed. Reform of Medicare is necessary, and it can go one of two ways: “Obama’s bureaucrats decide whether you get care” or we can put seniors in charge of their care and let markets — not government — lead reform. A market-based solution, as advanced by Paul Ryan, would let seniors select their own insurance, paid for by a voucher from the government. “Programs like Medicare are akin to a all-you-can-eat restaurant with someone else picking up the tab.” That’s a recipe for disaster, says Mitchell. Competition through markets — capitalism, in other words — can provide an increasing array of services of all kinds at lower prices, including health care for all. But capitalism is not allowed to flourish in health care markets, especially for seniors. … The voucher program for seniors has been characterized by liberals as “killing Medicare.” The present system will kill itself, as even President Obama acknowledges. The end of Medicare is not the end of health care for seniors, contrary to the lies of liberals. The benefit of market competition for seniors’ health care business promises better outcomes. For Wichita, which is betting on economic development through industry using composites to create products such as replacement hip joints, it is essential that such surgeries remain affordable enough that they are commonplace. The future of Obamacare, which is rationing, is not favorable for these prospects.

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