Roland Machinery is a Springfield success story. Starting over half a century ago, the company has spread to more than dozen locations across the Midwest. Roland deals in heavy machinery, and works with firms from around the world. Their contribution to the local economy, as well as global ties, made them a fitting place for Congressmen Rodney Davis’ (R-13) to talk about the pressing economic issues of the day.
The booming economy has been good for Roland. The combination of tax cuts, falling unemployment, and increased consumer confidence have driven growth for the company. They are doing more business, and are able to reinvest more because of the strong economy.
But the growing trade conflict with China and others poses some risks to their continued growth. Rising steel prices has impacted some of the attachments to the larger machines. Digging buckets are solid steel. When the price of steel goes up, so does the cost of the buckets. Such attachments are often only a small percentage of the total price of a system; but when the price jumps by 20 to 50 percent, it becomes far more noticeable. And because there are in a global supply chain, trade disruptions can pose unforeseen risks. However, Roland is confident that as long as the economy stays strong, they can manage any new costs.
The tariff balancing act
Rodney Davis then spoke about the current tariffs and their impact on Illinois farmers. Although not explicitly aimed at Illinois, any tariff on soybeans is going to heavily impact Illinois. Chinese tariffs on soybeans alone may end up costing American farmers billions. But soybeans are not the only trade issue from Davis’ district. The American steel industry, including in plant in Granite City, suffered from Chinese trade policy. Protecting American businesses from unfair Chinese practices is part of what has contributed to the current trade conflict.
The farmers’ unexpected politics help simplify Davis’ dilemma. Many of the farmers who stand to be most affected by the tariffs supported President Trump during the election. And they supported Trump in part because of his stance on trade, rather than in spite of it. Davis said that the farmers who have spoken to him say they still trust in Trump’s ability to handle the trade situation, and that Davis should as well. Davis said he is willing to work with the president, but, “If the President asks us personally to trust him on these issues, then we need to see results.”
America’s newspapers are vanishing, with Illinois losing more than most
When a newspaper closes or stops providing local content, it’s bad news for the local community, according to an updated report.
Since 2004, hundreds of local newspapers have closed up shop. The author of a report on this trend said areas without a local paper suffer in a variety of ways.
A study by the Center for Innovation and Sustainability in Media at the University of North Carolina says newspapers have shuttered at a high rate since 2004, many of which happened shortly after the recession in 2008.
“In total, the United States has lost almost 1,800 papers since 2004, including more than 60 dailies and 1,700 weeklies,” the report found. “Roughly half of the remaining 7,112 papers in the country – 1,283 dailies and 5,829 weeklies – are located in small and rural communities. The vast majority – around 5,500 – have circulations under 15,000.”
Illinois lost 157 weekly papers since 2004, most located in suburban Chicago as many merged with larger daily publications like the Chicago Tribune. This is among the highest number of closings in the country.
“Illinois has lost a tremendous number of newspapers,” said professor Penelope Muse-Abernathy, Knight Chair in Journalism and Digital Media Economics at the University of North Carolina and author of the study. “Newspapers have been the prime, if not sole, source of grassroots coverage of events that affect the quality of life for people in a community.”
The study was updated recently from an initial publication in 2016.
Behind a lack of revenue to support the local publications are decades of declining readership. According to the Pew Research Center, U.S. daily newspaper readership fell by 11 percent in 2017.
Muse-Abernathy said local newspapers have three main benefits to the area they serve: Coverage and oversight of local government; encouragement of regional economic growth and development; and social cohesion.
Often, smaller newspapers will merge with a larger one nearby and then reduce coverage of the area to cut costs, something the report dubs “ghost papers.” Ghost papers offer little to no local content.
“What you have is a paper that was a standalone newspaper in 2004 that has been gradually merged with a parent, usually a large metro daily,” she said. “They first become zoned editions and then tend to morph into an online-only presence with greatly-diminished resources.”
Studies have shown cities without local investigative journalists are more likely to raise taxes and become more inefficient.
The “news deserts” can be found in urban, rural and suburban areas across the nation, but most have one common trait: Poverty.
The report found that locations that had no local newspaper presence had a poverty rate of 18 percent, higher than the 13 percent average nationwide. Residents were also typically older and less educated.
The reason, according to Stanford University economist James Hamilton, is that residents of low-income areas tend to be overlooked by advertisers because they’re less likely to buy subscriptions and have less access to digital media offerings.
Article by Cole Lauterbach with Illinois News Network. For more INN News visit ILnews.org
Illinois Secretary of State warns about marijuana investment scams
Pot is a growing business in Illinois and other states.
And that means marijuana investment scams are becoming a growing problem.
Illinois Secretary of State Jesse White issued a warning about investment scams last week. Canada became the second country to legalize recreational marijuana use. Sales there started last week. In the U.S., nine states and Washington D.C. allow for recreational use of marijuana while many other states allow for medical use. The drug remains illegal under federal law.
“Whenever something is in the news, people who are on the wrong side of the ledger, want to line their pockets,” White said. “They come up with the various schemes to take your hard earned money. And we want to do all that we can to keep these people out of your pocket, so to speak.”
White said people need to do their research before investing in anything, especially the new marketplace of marijuana.
“The company must be registered with the state of Illinois,” White said. “If you have any questions about it, you can go to the website AvoidTheScam.net.”
White said the North American Securities Administrators Association has information on scammers and other flagged-businesses.
If you have been scammed, White said the securities department inside the Secretary of State’s office needs to know.
Article by Benjamin Yount, Illinois News Network. For more INN News visit ILnews.org
Illinois manufacturers, farmers eager for new trilateral trade deal
Illinois’ manufacturing and farming communities are excited about the new trilateral trade agreement President Donald Trump announced between the U.S, Mexico and Canada. But the state’s leading manufacturers’ group says Illinois must address its poor business climate and farmers say the U.S. must continue making deals with other countries in the face of a trade war with China.
After months of trade uncertainty, Trump said Canada is now on board with Mexico to forge a new trade deal with the United States. He decried the North American Free Trade Agreement signed by the U.S. in the 1990s as a horrible deal and campaigned to get rid of it. On Monday, he said he’s fulfilled that promise.
Called the United States, Mexico, Canada Agreement (USMCA), Trump said it will make North America a manufacturing powerhouse.
“That means more auto parts and more automobiles will be manufactured in the United States,” Trump said. “We will be manufacturing many more cars.”
Illinois Manufacturers’ Association’s Mark Denzler said that’s great news for the state’s automotive manufacturers that employ thousands of workers. It’s also good news for chemical, pharmaceutical and food manufacturers, he said.
But Denzler warned Illinois could miss the boat if it doesn’t address the state’s negative attributes.
“Workers’ compensation, higher taxes, we’re looking at a graduated income tax for example, higher minimum wage, all of these things add up and make it more difficult to do business in the state of Illinois,” Denzler said.
Illinois has the highest workers’ compensation costs in the Midwest, and seventh highest in the nation. The state’s property taxes are also among the highest in the country.
For farmers, Trump said the USMCA opens up the North American marketplace to make things more fair and reciprocal.
“The deal includes a substantial increase in our farmer’s opportunities to explore American wheat, poultry, eggs and diary, including milk, butter, cheese, yogurt and ice cream,” Trump said.
Trump had long blasted Canada for having a nearly 300 percent tariff on U.S. dairy products.
While Illinois dairy products may take a backseat to dairy products from states bordering Canada, Illinois Farm Bureau President Richard Guebert said the trade deal is still great news. He said trade negotiations must now continue elsewhere.
“Let’s work on the other countries as well, the [European Union], Japan and build those markets knowing that China is going to be a little ways down the road,” Guebert said.
In an effort to curb what he called unfair trade practices and intellectual property theft, Trump has imposed tariffs on all kinds of Chinese products. China has responded in kind with no end in sight.
The USMCA trade pact must still be ratified by all three countries before it replaces the NAFTA agreement.
Article by Greg Bishop, Illinois News Network. For more INN News visit ILnews.org
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