All those rabid LSU fans who find themselves in the unusual position of backing a team virtually buried in the 19th position among AP’s football elite can take heart; at least the Tigers aren’t 44th.
And those equally insane ‘Bama fans looking to secure another crystal football for their school’s trophy case can be glad the Tide isn’t ranked 46th.
As both teams head into their respective post-season games, 24/7 Wall St., a research firm that publishes some 30 ARTICLES per day on economy, finances, and government, has come out with its rankings of the best- and worst-run states in the country.
And it ain’t pretty.
Alabama is no. 46 out of 50 states but that’s okay. Never mind that it is one of the poorest states in the nation with 18.5 (5th highest) of its citizens living in poverty). The Tide is in the playoffs for the national championship.
Don’t worry about the state’s unemployment rate of 6.1 percent, which is tied for 8th highest in the country. Alabama, which proclaims itself to be the Heart of Dixie, pays the coaches of its two major college football teams, ‘Bama and Auburn, combined SALARIES of $11.67 million—$4.73 for Auburn’s Gus Malzahn and $6.94 million for ol’ Nicky Boy.
(Les Miles, before being unceremoniously cut loose by LSU’s Athletic Director Joe Alleva, himself the possessor of somewhat dubious talent, was pulling down a cool $4.3 million per annum. But all of these salaries pale in comparison to Jim Harbaugh’s $9.004 million salary at Michigan.)
LSU, meanwhile, is headed to this Friday’s Citrus Bowl in Orlando to take on the juggernaut Cardinals of Louisville—without the services of Leonard Fournette who has played his last game for the Tigers. (On that note, now that Fournette has declared himself draft eligible, retained an agent and opted not to participate in Friday’s game, has he, or any other player deciding to go pro, also opted out of attending classes for the remainder of the semester as well? If not, are any of them continuing to reside in free housing, enjoying free meals or using school training equipment for workouts? Just a thought.)
Meanwhile, back home, Louisiana ranks as the 44th best-run (or the seventh worst-run) state, just two notches ahead of Alabama. The two are sandwiched around Kentucky in the rankings while the state geographically wedged between them, Mississippi, is ranked 47th best, or fourth-worst with the fifth-highest unemployment rate at 6.5 percent and the highest poverty rate at 22.0 percent.
Louisiana’s unemployment rate of 6.3 percent (sixth-highest, right behind Mississippi) and its third-highest poverty rate of 19.6 percent (New Mexico’s 20.4 percent is second-highest) are nothing to brag about. Nor is its $4,067 debt per capital (16th highest).
The question, at least in Louisiana’s case, is: Why?
- Louisiana has some of the highest crude oil and natural gas reserves in the nations;
- Louisiana is one of the top crude oil producers in the country;
- More crude oil is shipped to the Louisiana Offshore Oil Port (LOOP) than to any other U.S. port;
- Louisiana has several of the nation’s largest ports with exports totaling $10,530 per capita in 2015, second highest of all states, behind only Washington;
So with this abundance of natural resources, why is it that Louisiana continues to struggle with high poverty, low educational attainment and high violent crime.
Well, for starters, you can tie the first two of those to the third: high poverty and low education rates equal high crime. Every time.
All that notwithstanding, however, the overriding question is how can a state with such an abundance of the world’s most valuable commodity fail to profit?
Market news has been replete with stories lately about how the poor oil companies are taking hits with some reporting net profits down by as much as 37 percent. Still, even with lower earnings, some, like SHELL, reported net profits of a paltry $2.24 billion for the second quarter of 2016. That’s three months’ profits, folk. Three months.
Yet, Louisiana continues to give away the store to big oil through more than generous tax breaks while allowing them to walk away from the ravages they have inflicted on our coastal marshes.
With so much revenue derived by the oil and chemical industries through these tax breaks, there is no reason why this state’s citizenry continues to wallow in the depths of financial despair and desperation.
With a more reasonable tax structure in which big oil, big chemical plants, and their related industries (ports, trucking, and rail) could be asked to bear more responsibility for wrecking our coastline, polluting our air and water, and tearing up our highways, Louisiana could forge ahead of most of those states ranked ahead of them.
Yet we continue to place the greatest burden on the backs of those who can least afford it: the middle and low income groups through the most inequitable form of taxes. Louisiana has the third-highest average (9.01 percent) in state and local SALES TAXES in the nation.
Ever wonder why that is? For starters, the average taxpayer doesn’t have the time or resources or a PAC to generate organized opposition to this rigged tax structure or to purchase legislators’ votes. Big oil, Big Pharma, and Big Banks do.
Do you think it was sheer coincidence that former State Sen. Robert Adley was appointed by Gov. John Bel Edwards as Executive Director, Louisiana Offshore Terminal Authority? http://gov.louisiana.gov/news/governorelect-edwards-announces-cabinet-executive-staff-bese-board-appointments
Think again. Here is LouisianaVoice’s overview on why Big Oil has the influence it exercises in this state: https://louisianavoice.com/2016/08/28/ag-jeff-landry-joins-jindal-legislators-in-protecting-big-oil-from-cleanup-responsibility-follow-the-money-for-motives/
(Be sure to click on Copy of Campaign Contributions)
But at least the NCAA playoffs and the Citrus Bowl—and national signing day—will keep the natives content for a while longer.
Louisiana Voice 
I have always been stunned by how ironic it is for a state with so much potential, so much natural beauty and a wealth of natural resources to have such high poverty levels. Our over burdened public education system is being so actively destroyed by people with no educational background or understanding of what it takes to actually educate a child to become an active citizen capable of intelligently participating in their community and the world. I can’t help but see the similarity between the behaviors of the current powers that be and one of the principals taught in military classes on strategy; destroy the intelligentsia, the artists and thinkers. Remove access to the development of an educated populace able to think for itself. Create a society that is suspicious of those who propaganda can create as “the ones” at fault. Control the media so that they present only the information desired by those in power. I find myself actually more than concerned about our state and to the future of America as the most diverse and welcoming country in the world. I see science, religions other than “Christian” and diversity under attack. It is hard not to give up. I can fight back in what I am sure seem small acts to others at the front, but in this climate of blame, some of us risk our jobs and our place in the community even with these small rebellions. Online communities can be relentless and evil in their attacks on those they perceive as “the ones”. Thank you Tom for not giving up! I won’t either!
Sadly, as you frequently document, little appears to have changed in the Louisiana zeitgeist since my wife and I decamped the Bayou State three decades ago.
Fortunately, your gimlet eye remains ever vigilant. Cultural critic, H.L. Mencken, the “Sage of Baltimore,” would be heartened by your tireless crusade on behalf of your fellow Louisianans. I certainly am.
I’m sure our new Secretary of State and POTUS-elect will help us out by putting an ExxonMobil tiger in our collective tank in return for our continuing generous treatment. Who needs a stinkin’ coastal environment, anyhow? We’re obviously better off without the bottom part of our state and, once its gone, the non-losers can move to their upcountry estates and buy beachfront property in Baton Rouge..
Fascinating comment, Mr. Winham. When I served in public information at the LA Dept. of Environmental Quality starting in 1989, the agency head, who lived not far from my Port Hudson/Zachary home, joked that we were the smart ones, as we would own beachfront property within a few decades. Environmental scientists were well aware of climate change back then, but had to battle Big Oil, because they knew about it, too.
Paul Templet, then secretary of DEQ, actually cared about protecting the environment and, yes, he had the same battles we have today, but at least he fought them.
@earthmother and Stephen:
Actually I believe y’all are being overly optimistic that we or our children/grandchildren will actually live to see that waterfront property near B.R.
With our soon-to-be President’s desire for more, bigger, better nukes. I wonder how long it will take before the button is pushed.
Here’s an interesting link where you can put in your favorite city and choose your kilotons or megatons for what happens when “the bomb” goes off near you. I put in Baton Rouge and it seems like ground zero is within spitting distance of the Exxon refinery. This also lets you set variables for things like maximum radii for overpressure rings, ionizing radiation rings, thermal radiation rings…all kinds of goodies. Check it out:
http://nuclearsecrecy.com/nukemap/
@Fredster: I live very near the Riverbend Nuclear Station and Exxon is the first thing I come to when I go to Baton Rouge. The best hope for me and mine is to be basically flash incinerated if the nukes fly. Once they start I don’t see them stopping until we’re all gone or certainly until our civilization is.
Thanks, Fredster, for the interesting website and the fun but sobering reality check. You brought back fond memories of working to create a state/federal government plan for nuclear war, that ended with the idea that all Americans should just sit tight and wait for the big bang, because there was no place to run and hide, and no way to survive after nationwide strikes. (I’d be happy to share that fascinating story sometime.)
We live not far from the Riverbend nuclear power plant, and the monthly test of the air raid-type warning siren makes the blood run cold. We are also 15 or so miles upriver from the Exxon refinery. In 1989, a huge explosion at Exxon rocked our house and damaged buildings in a 20 mile radius from the plant. A nuclear bomb strike would be unsurvivable, as Mr. Winham noted. Those of us old enough to remember the scary days when the nation feared nuclear war are rightly concerned with trump’s bluster about nukes.
I wonder if his first executive order will be to teach school children to duck and cover under their desks with their hands clasped behind their necks when they hear the sirens. That’ll save ‘em from the bomb for sure.
@Fredster – I’m holding out for the Rapture, myself. I don’t expect that I’ll be one of the chosen. I’m just hoping that there are still enough resources to rebuild after the good people have moved on.
Right on all counts, Mr. Winham. Dr. Templet was a visionary whose work was nationally known. Sad that three decades on, we have made so little progress.
Why was it that Alaska was able to negotiate with Big Oil terms that not only do not give tax breaks to the Oil companies but extract from them sufficient revenues to allow for every citizen of Alaska to be PAID and not taxed by the state? Because like bank robber Willie Sutton said when asked why he robbed banks responded by saying “Because that’s where the money is.” Thus, if we have the oil and Big oil wants/needs it, then make them pay for it. Somehow Big Oil negotiated laws and regulations with our legislators and bureaucrats to have us pay them to “steal” our oil. Well, this gravy train for big Oil needs to come to a stop and reverse course. Therefore, until such occurs, I will oppose any tax, fee, charge of any kind that the legislature proposes (including renewals). I hope I’m not alone in this stance.
If I thought that would work, I would be right there with you, John. Unfortunately, I don’t think our elected officials would get the message – They are essentially paid not to and how do we stop that?
As I sit here and read all the doom and gloom predictions of you people who supposedly know better, I want to stick my finger down my throat and gag at some of the things I read above. Some of your comments show a complete and total lack of reality and understanding.
First of all, the LSU and Bama football coaches are NOT paid with public funds! Their salaries are funded through their athletic departments [which operate totally by self-generated funds from fans], NONE of which comes from public taxes or funds! When teams win, their fans do more to support them which is why football coaches in the SEC are well-paid and expected to win. Winning brings increased self-generated revenues to the athletic department.
Secondly, regardless as to the size of our ‘reserves’, the ‘high point’ of oil ‘production’ in Louisiana was in the 1980’s! Since then production has steadily declined. Revenues did not decline initially because the State changed the way it was taxing oil and natural gas. It had nothing to do with an increase in production. If you don’t believe me, just ask the State Department of Natural Resources.
Thirdly, this idiotic fixation with the belief Donald Trump will start a nuclear war is the most insane BS I have ever read! You people ‘drank the kool-aid’ given to you by liberals, elitists, and the Democratic Party because you show no ability to think for yourself. The fact Donald Trump wants to rebuild our military does not make him a warmonger but, rather, the opposite. In 370AD Publius Renatus of Rome said, “If you wish to have peace you must be prepared for war”. Powerful nations are never victimized by other nations. It is only when a nation becomes weak it is preyed upon by others. When the US was attacked by Japan in 1941, we had the 26th strongest military in the world–even Romania had a larger military than the US.
I served with James ‘Mad Dog’ Mattis, the nominee for SecDef and I know he would never sanction the kind of nuclear war some of you hint at above. Trump has already shown he trusts Mattis because he has softened his tough talk as a result of Mattis’ advice. Only people who have never served in the military would fail to understand members of the military are the last ones who want war. After 35 years in the US Marine Corps I can honestly say I did my duty but I never wanted to go to war. I served in the hope I would never be needed for a war.
As for Riverbend, I have a friend who was security there for 30 years and he said he would have no problem living next to Riverbend. I have another friend who has a background in nuclear engineering and he told me he would not hesitate to live next to Riverbend.
Regarding the unemployment rates some of you have referenced, you should ask our incumbent President about that. Barack Obama and the EPA [and its regulations] have done more to destroy the economy of Louisiana [which is heavily dependent on oil and natural gas industries] than any other factor some of you have mentioned above.
Mr. Garidel, with all due respect, I don’t think the source of coaches’ pay was the issue here. You have certainly done one of the better jobs I’ve seen anybody do defending our POTUS-elect. To say the rest of us suffer from “a complete and total lack of reality and understanding” is beneath you.
I have no problem living near Riverbend and hope I made clear my hope it is a target if we are ever under nuclear attack and why. You are in a far better position than I to judge what General Mattis would sanction, but some of us fear all bets will be off once the first bomb lands.
As to your final statement, the effectiveness of the EPA has eroded over time as has that of our own DEQ. No one can argue protecting the environment is without costs, but many of us believe those costs should be borne by those causing it.
Thank you for your thoughtful post. I just wish you hadn’t resorted to basically calling the rest of us idiots for beliefs we closely hold based on our own experiences and, believe it or not, ability to think for ourselves.
Regardless of which side of the fence you reside on, nothing in this state will change until we get rid of the career politicians in Baton Rouge. And that’s both parties folks.
Wow! If one wakes up with an optimistic spirit, merely reading the comments above will certainly bring one’s spirits down in a hurry.
I hate to stick out like a sore thumb, but I’m more optimistic than I have been in a long, long time.
I’m VERY, VERY encouraged by the arrival of Jeffrey Sallet as New Orleans FBI Head because, as a forensic accountant, he is uniquely qualified to hone in on corrupt politicians and public figures in this state. His credentials are impeccable: https://www.fbi.gov/contact-us/field-offices/neworleans/news/press-releases/jeffrey-s.-sallet-named-special-agent-in-charge-of-new-orleans-division. I just wish he’d arrived about nine years ago, but as the old saying goes, “better late (he was named head of the NO Office just over a year ago) than never.” Look for significant developments to arise from the raid of about.two weeks ago and for further such actions entailing other matters.
I’m also very happy with Attorney General Jeff Landry’s first year in office. I think we can all get ready for several announcements entailing prosecuting public corruption to originate from his office during 2017. No such legitimate announcements transpired under Caldwell but instead only witch-hunt prosecutions such as Greenstein which was, in reality, a desperate attempt to find a defense to the civil litigation initiated by CNSI after Caldwell improperly convinced Jindal to terminate the company’s contract. I FIRMLY believe Caldwell’s motivations for doing so need to be the focus of a criminal investigation themselves.
My final reason for optimism goes back to when I was eight years old, and my dad explained to me that people own the companies that provide our services. Intriguided, I asked if I could own part of one, and he said, “Sure, but you have to save to be able to buy shares.” I started saving my $2/week allowance in the hope that I could buy a few shares of some company. My dad saw my dedication, and he said if I was serious and would make saving a life-long commitment, he would “assist” me by proving the funds I needed to buy a “round lot” (100 shares) of Gulf States Utilities (the company which built River Bend that apparently invokes such fear). It traded then for $8/share, and it was the first stock I ever owned. As many readers will know, River Bend came very close to bankrupting GSU, but my father explained to me when I first bought the stock that “utilities are safe but ANYTHING can happen when you invest, including losing your entire investment.”
That was 45 years ago, and I’ve learned tons since then about the stock market and derivatives thereof like put and call options. The one thing I’ve found to be a constant is that market participants (investors – the people), far more times than not (but, yes, there are exceptions) accurately predict the future of the economy for the next two years by the stock market’s performance. On the eve of Trump’s assuming office, the DJIA is brushing up against 20,000, and THAT, I firmly be.ieve, is a MAJOR reason for optimism.
I hope everyone’s New Year gets off to a great start!!
What do you call the person who graduated last in medical school?
Answer: Doctor.
What do you call that point just before the crash?
Answer: Peak.