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South Dakotans Face Bankruptcy; Noem Urges Optimism

Governor Kristi Noem goes on Fox News again, this time to tell Laura Ingraham and her national audience that we all need to be less negative and more optimistic.

Easy for her to say. She’s not seeing her bank account going negative, unlike the South Dakota workers, farmers, and small businesses facing coronavirus-recession bankruptcy:

…increased rates of unemployment, reduced incomes of people at all levels of the economy and a coming debt crisis will all play a role in the anticipated bankruptcy storm that could affect a wide range of individuals and businesses, including people who long saw themselves as financially stable, said Breck Miller, community relations director for Lutheran Social Services Center for Financial Resources in Sioux Falls.

“It would not surprise me at all if we do see an increase in the number of bankruptcy filings,” Miller said. The pandemic “really put a lot of people in a financial bind, and I think it’s going to strike across the demographics. It’s not just a low-income thing” [Nick Lowrey, “Experts: Wave of Bankruptcies Likely in S.D. as Pandemic Stifles Incomes and Aid Runs Out,” South Dakota News Watch, 2020.08.05].

Preventing a wave of bankruptcies will take more than optimism. It will take concerted and costly government interventions to support families through the pandemic and the recession.

Families going bankrupt don’t need happy talk. They need money and jobs, and when the economy is hobbled, money and jobs come from government vision and action… neither of which Governor Noem demonstrates from her private video bunker on Fox TV.


  1. jerry 2020-08-06 09:36

    Meanwhile “1,186,000 unemployment claims were filed in the week ending on August 1, the Labor Department reported on Thursday.

    The report came after $600 extra weekly unemployment benefits from the federal government’s first COVID-19 relief package expired last week.

    Negotiations over the next stimulus bill have stalled as Democrats propose to extend the $600 weekly payments while Republicans push to reduce the benefits to $200 a week.”

    But the rich boys are making out like the bandits they are. Taxpayer funded Wall Street is up on this news.

  2. Owen 2020-08-06 09:43

    I wonder how many of the jobs lost will come back? I was laid off due to COVID-19 and my position was eliminated. I wasn’t the only one laid off at this company. There were many who had been with the company for 30+ years. Kind of hard to be optimistic when you lose your job, especially if your older.
    I was lucky and found a job. Doesn’t pay as much much but I’m working.
    I’l a lot less negative when Trump and his crime family are gone.

  3. Cory Allen Heidelberger Post author | 2020-08-06 12:47

    Owen, I’d speculate that operations like the one that laid you off won’t be able to restore those positions until the economy fully recovers. Everyone but Amazon is going to be gun-shy about returning to pre-coronavirus staffing levels, not to mention daring to think of adding new staff, until we know the pandemic is contained (and that means vaccine) and the recession is done… and even then, they might hesitate to hire, because they will be worried that their business won’t withstand the next big economic upheaval. Plus, they also need to wait and see how the huge psychological and sociological effects of this year’s pandemic translate into long-term changes in people’s economic behavior. Will dining out take a permanent hit? Will buffets be dead? Will big sports events and rock concerts and fairs have a smaller pool of customers (made up of a larger proportion of reckless rednecks and perhaps a lower portion of well-paid but well-educated and thus cautious professionals) producing smaller revenues?

  4. Cory Allen Heidelberger Post author | 2020-08-06 12:49

    But come on, Owen, Jerry, buck up! Quit being such Negative Nellies. Optimism will solve our problems. Kristi said so! Optimism….

  5. jerry 2020-08-06 13:12

    Yeah, no more Debbie Downer for me. From now on, just positive thinking while waiting for the end of January 2021. Then the optimism of watching Fat Nixon and his spawn head for the hoosegow.

  6. kj trailer trash 2020-08-06 13:38

    OMG, speaking of Noem farting ridiculous crap out of her piehole, here’s the absolute definition of tone-deaf: She was yapping on the local radio station’s local news today, in a story about how she’s trying to lure business from Minnesota (haven’t we beat that horse to death for decades already?), that the state government in Minnesota, with their policies, was “choking the life out of people and businesses.” I might’ve gotten an unimportant word or two wrong, but I very clearly heard her say that (Walz specifically or the state gubmint in general) was “choking the life” out of peeps and business. You dreadful scamming Trump-in-heels moron, you couldn’t have come up with stupider and more disrespectful words to describe what Walz is doing to try to AVOID having a whole bunch more people “have the life LITERALLY choked out of them.” Y’know, it’s one thing to avoid political correctness so as not to feel like a weenie; it’s another thing altogether to be so stupid that you would use those words. I for one am glad that some good folks in Minnesota are having economic troubles rather than choking to death on their own spit in the ICU. My cat’s litter box is smarter and less full of crap than Farm Welfare Barbie.

  7. kj trailer trash 2020-08-06 13:47

    I tried to google it by searching for “noem trying to lure business from minnesota” and kept getting the same AP story without the choking part, so a search for “noem says minnesota choking the life out of business” finally got me her verbal comments which did, indeed, say what I said. For a minute there I thought I was going crazier than i already am. God, she’s a moron. Apparently there’s an online ad somewhere trying to lure Minns to SD, apparently without the choking reference.

  8. Wade Brandis 2020-08-06 14:41

    Adding to the job search woes, the DLR reinstated the work search requirement this week. That means in order to keep receiving unemployment benefits, people have to perform at least two work search activities per week. This includes things like submitting employment applications and attending job interviews.

    Jobs are slowly starting to open up again in Madison, but how long will that last? Cases in Lake County have been steadily rising and as more people get sick, less people go shopping or are able to go into work. And with college students preparing to move back to town, Covid cases will rise even further. Masks may be mandatory on campus, but will the students keep the masks on while they party with friends at one of the downtown sports bars?

    On top of that, the mayor of Madison claims he can’t force local businesses and residents to wear masks. He doesn’t give a good reason as to why he can’t order a mask mandate other than the usual “it’s up to the businesses” excuse.

  9. Jenny 2020-08-06 17:21

    I haven’t heard businesses complain about the mask mandate here in MN except for some bars and restaurants. South Dakota just lucked out on a low Covid percentage because there is no big metropolitan area except for Sioux Falls, which had its share of COVID mishaps, so I wouldn’t gloat all that much Kristi. I was looking at state statistics and was actually surprised that North Dakota and Montana have lower rates of COVID-19 than South Dakota.
    The South Dakota GOP never talk about their low wages. Who cares about low taxes when the wages suck in South Dakota.

    Walz and Norm were in the house together In Congress and have known each other for a long time.
    Governor Walz is the kind of decent man that would’ve sent his regards to South Dakota had a senseless killing and riots happened there. Kristi does just the opposite, no sentiments just wants to be on her embarrassing Kristi platform again. .

  10. Debbo 2020-08-06 17:39

    Here’s what’s really going on in Minnesota and Minneapolis in particular. (Hint – no mass exodus.)

    The Minneapolis Area Realtors, a nonprofit industry association, decided somebody should probably run some numbers on that.

    To that effect, in a study released last week, the group analyzed the city’s housing activity based on four basic measures: new listings, percent of original list price received, days on the market, and showings. They sampled a “variety” of communities and compared Minneapolis’s figures to other metro cities to determine if, as social media claims, people have been fleeing.

    In a word: naw. Activity in June was pretty much stable. Sure, more houses were put up for sale in June than May, the report found, but “that increase is comparable to other cities and is still below 2019 [Minneapolis] levels.”

    Sellers were receiving and accepting offers — at an average of 100 percent of their list price — in “near-record” time. Even if a higher-than-normal amount of people were to put their homes up for sale, the report says, it’s likely “the insatiable demand” for Minneapolis property would gobble them up in a heartbeat.

    “In summary, a closer examination of the data does not support claims that the City of Minneapolis is seeing a disproportionate increase in seller activity… in the weeks following the unrest,” the report says.


  11. leslie 2020-08-06 17:56

    No worries. Certainly one unrelated person in the state can fill that vital once vacated public position immediately during this time of corona virus! Looking forward to the announcement….

  12. Scott 2020-08-06 18:25

    A study should be done to see how many of those minesota businesses are still open after 10 years of moving out of minesota. Then look at how much tax money was given to those businesses that closed up prior 10 years of businesses in SD. I would like to know if south dakotans are getting much out of this stealing of minesota businesses.

    I know there are great success stories of minesota businesses that move to SD.

    I believe thou that there have been many minesota businesses that are in trouble and believe they can get all these tax breaks and lower wages to help them survive, but still end up failing.

    Other minesota businesses use SD as a stopping off point as they move here for a few years and then move their operation to Mexico. IMO they use SD to test and perfect remote management, then if successful, they move their operations to Mexico.

  13. grudznick 2020-08-06 19:50

    grudznick is not in favor of this recruiting of the Minnesotians to come over the border, unless they all stay in Sioux Falls.

    I also fear, terribly, the demise of the breakfast buffet. It signals the beginning of the end of civilized society, where a man can have as much bacon and gravy taters as he wants for a single fair price and get a clean plate every time. Women, too, of course, can have as much from the salad bar as they want, too.

  14. Debbo 2020-08-06 20:11

    Scott, it would be interesting to know, but I doubt you will find out. The SDGOP doesn’t want that kind of info to get out.

  15. Debbo 2020-08-06 21:32

    k trailer trash, you are my hero. I adore your descriptive language for Kruel Kristi. You far surpass my weak attempts to accurately name her. I am not worthy. 🙇‍♀️

  16. Cory Allen Heidelberger Post author | 2020-08-07 06:12

    Evidence on Owen’s concern about permanent damage to hiring:

    Permanent losses have so far made up only a fraction of the jobs that have vanished since states began shutting down their economies in March, with the vast majority of unemployed workers classified as on temporary layoff. But those numbers are steadily increasing — reaching 2.9 million in June — as companies start to move from temporary layoffs to permanent cuts. The number is widely expected to rise further when the Labor Department reports July data on Friday.

    …Permanent layoffs have already begun spreading beyond industries directly affected by the pandemic. Nick Bunker, the director of economic research with the Indeed Hiring Lab, found that while permanent losses were concentrated in April in service-sector occupations that have been the hardest hit — waiters and retail salespersons, for example — they had spread by June throughout the labor market.

    …Layoffs taking place now are more likely to be permanent rather than a temporary furlough. A Goldman Sachs analysis from July 31 found that 83 percent of job losses since February had been deemed temporary. But of all new layoffs in July in California, which it used as an example, only 35 percent were temporary [Megan Cassella, “A Growing Side Effect of the Pandemic: Permanent Job Loss,” Politico, 2020.08.06].

    Not that I want Owen to be right, but his concern about layoffs becoming permanent and prolonging the rcession appears warranted.

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