Gophers season ends in NIT second-round loss to Indiana State

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The Gophers men’s basketball team made significant progress this season. The U more than doubling its win total from nine to 19, and while picked to finish last in the Big Ten Conference, they were ninth in the 14-team league and advanced in their first postseason since 2019.

But it came to an end Sunday with a 76-64 loss to top seed Indiana State in the second round of the National Invitational Tournament at Hulman Center in Terre Haute, Ind.

Gophers head coach Ben Johnson called Indiana State worthy of making the NCAA tournament, but they were passed over for an at-large berth. The Sycamores (30-6) move on to play No. 2 seed Cincinnati in the NIT quarterfinals at 8 p.m. Tuesday

“It was a great challenge,” Johnson said in KFAN postgame. “… It was a tough way to go out, but I told our guys, ‘You can’t let one game dictate how we were for the course of the year.’ I think from the very beginning when nobody had us in anything to be able to orchestrate a new crew and to figure out and understand winning. … There is more to be had. Hopefully (the players) leave here a little bit hungry but also satisfied (in) knowing they took the right step.”

Minnesota (19-15) was a 7.5-point underdog Sunday and made it interesting in the second half with an 11-0 run to cut the Sycamores lead to 52-49 with 12 minutes remaining. But Indiana State never trailed and separated from the U yet again to win comfortably.

Gophers best player Dawson Garica didn’t score until hitting a pair of free throws with 13 minutes remaining in the second half. He finished with six points as 12 rebounds.

Garcia put himself on the bench in the first half. He was called for a personal foul, his second of the game, with 10 minutes left in the first half. Then he talked trash with Xavier Bledson and both players were hit with a technical fouls. It was Dawson’s third and he sat for a long stretch.

Indiana State had been separating itself before Garcia went to the bench, but it was an onslaught afterward. The Sycamores used a 24-7 run to take a 33-15 lead.

Minnesota responded with a 12-2 run to make it 35-27. They did it without point guard Elijah Hawkins, who went to the bench with an apparent left hip injury. The teams traded baskets and Indiana State led 38-28 at the break.

“We didn’t get off to a good start and then when we started to get our rhythm, it is toward the end of the game, so you just run out of time,” Johnson said on the radio.

Hawkins returned for the second half, but he couldn’t last, sitting back down with 15 minutes remaining. He finished with 10 points and one assist in 22 minutes played.

“He tried and it just had too much pain,” Johnson told Mike Grimm. “In a game like this that is really physical, you got to have everything and got to be able to move. He just couldn’t go. Credit to him for trying.”

Indiana State is having its best season since Larry Bird starred there in the late 1970s. Indiana State won the Missouri Valley Conference regular season title, but missed out on the NCAA tournament as Drake won their conference tournament. Their bespectacled current leading scorer, Robbie Avila, has a handful of nicknames, including “Larry Nerd.”

But Avila had an off shooting afternoon and finished with 11 points on 1 of 6 from 3-point range. Ryan Connell led all scorers with 23 points.

This is the Gophers’ first NIT appearance since they won the championship in 2014; they won their first-round matchup 73-72 over Butler on Tuesday.

Johnson said he will meet with players when they return to Minnesota this week and determine how many with remaining eligibility will come back for next season. If the majority returns and other additions are made, the Gophers will be in position to take another step next season.

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Business People: Arise Community Credit Union becomes Minnesota’s first Black-led credit union

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OF NOTE

Debra Hurston

The Minnesota Department of Commerce announced it has issued a charter for Arise Community Credit Union, based in Minneapolis. It is the first new state-chartered credit union in 23 years and the state’s first Black-led credit union. Arise will be a not-for-profit cooperative owned by members, with membership open within Hennepin and Ramsey Counties. The Association for Black Economic Power, under the leadership of Executive Director Debra Hurston, has led the creation of the organization.

ADVERTISING/PUBLIC RELATIONS

Minneapolis-based digital-first media agency KOSE announced the promotion of Colin Murphy to group media director. Murphy’s career includes working with such brands as Buffalo Wild Wings, American Express, General Mills, Nestle, Purina, H&R Block and 3M. … Lime Valley Advertising, Mankato, announced it has received two Service Industry Advertising Awards for communication excellence this year: Gold Award — Minnesota Valley Lutheran High School, Building on the Rock Casebook; and Silver Award — North American Society for Trenchless Technology, No-Dig Show 2024 – Sponsor & Exhibitor Prospectus.

ARCHITECTURE/ENGINEERING

Wold Architects & Engineers, St. Paul, announced the promotion of Jacob Windschitl to the Associates Leadership Team. … Braun Intertec, a Bloomington-based engineering and environmental consulting and testing firm, announced the retirement of Chief Executive Officer and President Jon Carlson, to be succeeded by Tim Lenway. Lenway has been with Braun Intertec since 2007 and was named a corporate officer in 2018.

ATTRACTIONS

The Science Museum of Minnesota, St. Paul, announced the following new members to its board of trustees: Dr. Bret Haake, Regions Hospital; Jennifer Hellman, Goff Public; Sri Koneru, Winnebago Industries; Jennifer Lastine, Securian Financial; Timothy M. O’Brien, Ecolab; Claudine Rydstrand, Delta Air Lines; Arvind Sharma, Ameriprise Financial; Susan Rundell Singer, St. Olaf College, and May yer Thao, Hmong American Partnership.

GOVERNMENT AFFAIRS

Stateside Associates, an Arlington, Va.-based state and local government lobbying firm, announced that Kurt Daudt is joining the firm as vice president. Daudt is a former Minnesota state representative and served as Speaker of the House from 2015 to 2019 and House Republican minority leader.

MANUFACTURING

New Wave Design and Verification, an Eden Prairie-based maker of digital electronic interfaces for business, announced the appointment of Darlene Weiss as director of human resources. Weiss has held similar roles at Donaldson, Medtronic, Integra LifeSciences and Lockheed Martin.

MILESTONES

Steve’s Appliances, a Mounds View retailer, announced its 50th anniversary in business.

NONPROFITS

Operation Underground Railroad, a Salt Lake City, Utah-based organization focused on combating human trafficking that plans to expand to Minneapolis, announced that Tammy Lee has been appointed chief executive officer. Lee previously led Xena Therapies, a med-tech company based in Red Wing, Minn. In conjunction, Xena announced that Lee’s business partner and co-founder Mitch Abrahamsen becomes CEO with Lee assuming the role of board chair. … Twin Cities Habitat for Humanity announced the following new board members: Cecilia Stanton Adams, The Diversity Institute; Steve Albrecht, Shakopee Mdewakanton Sioux Community; Brian Durmaskin, North America Surgical, Ecolab; Lara Koza, Longevity Holdings; Jamie McCarty, Dorsey and Whitney; Tariq Malik, Securian Financial; Tara Norgard, Carlson Caspers; Rich Rubenstein, General Mills; Jonathan Sage-Martinson, Amplio Economic Development Corp.; Board Chair is Nash Shaikh, Blue Cross and Blue Shield of Minnesota; executive committee: Tony Barranco, Ryan Cos.; Jim Mulrooney, Bremer Bank; Keiko Sugisaka, Maslon LLP, and Paul Delahunt, community volunteer. … Woodbury Community Foundation announced the following new board members: Erich Mische, SAVE (Suicide Awareness Voices of Education), and Ross Hillukka, Thrivent. Both are residents of Woodbury.

SERVICES

St. Paul-based Ecolab, which provides businesses with sanitary protection products and services and also runs several related subsidiaries, announced it has appointed Judson Althoff to its board. Althoff is chief commercial officer at Microsoft.

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EMAIL ITEMS to businessnews@pioneerpress.com.

Murphy, Sperling: How a California climate win could end up destroying rainforests — and what to do about it

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Half the diesel fuel in California is made not from unsustainable petroleum but from renewable biomass such as waste and plant oils. Soon all our diesel will be biofuels. This is particularly good for the environment if the fuel is made from wastes and residues, but it’s much less so if it’s made from crops that use energy and land but don’t produce food.

Unfortunately, a proposed amendment to California’s Low Carbon Fuel Standard threatens to put the state, the country and the world on a course toward relying more heavily on diesel produced from crops, ensuring more widespread destruction of rainforests and diversion of farmland from food to energy production.

California pioneered the standard to support the development and use of lower-carbon fuels for transportation. It effectively encourages oil companies to subsidize low-carbon fuels and electric vehicles without bankrupting them, and the only costs to taxpayers are administrative. This innovative policy has been replicated in Oregon, Washington and Canada, while other states and Congress are considering comparable measures.

The fuel standard incentivizes the use of renewable diesel made from oil waste and crops, a major success of the policy. Renewable diesel can be used in virtually any diesel engine, reducing greenhouse gas emissions by 70% or more when it’s made from waste oils.

The environmental benefits are much less substantial, however, when the fuel is made from crop-based oils such as soybean or canola.

That’s because those crops require energy, fertilizer and land, among other environmental consequences.

Renewable diesel offers such a compelling business opportunity to oil companies that two Bay Area refineries are being converted to produce it, possibly by the end of this year. California-inspired renewable diesel is booming across the country.

As the industry grows, however, it’s having some unintended consequences.

Until recently, most renewable diesel was made from waste cooking oil, rendered beef fat and corn-ethanol byproducts. But now those domestic sources of waste oil are largely tapped out. Indeed, the U.S. has to import not only waste-based fuels but also the wastes and residues themselves to supply our processors.

That means more and more renewable diesel is likely to come from oil produced from soybeans and other food crops.

We know from experience that increasing demand for plant-based oils — whether for food, animal feed or biofuels — leads to more slashing and burning of tropical rainforests in Southeast Asia and South America to expand palm and soy oil production. This deforestation releases mass quantities of greenhouse gases by burning trees that have sequestered carbon over centuries. It also harms watersheds, disrupts Indigenous communities and causes a raft of other social and environmental problems.

If what happened in California stayed in California, we wouldn’t be so concerned. Global vegetable oil producers probably could replace California’s remaining fossil-fuel-based diesel without much additional harm.

But other jurisdictions that have adopted or are considering policies like California’s are watching the state carefully. And the Treasury Department, European Union and global airlines are about to embrace plant oils as a substitute for the fossil fuels used in aviation. What California decides about renewable diesel will therefore have far-reaching effects.

The California Air Resources Board is updating the Low Carbon Fuel Standard this year to raise its targets and make other adjustments, including expanding its scope to include jet planes operating within the state. It is not, however, proposing to rein in the use of crop-based fuels. If the board does not address this issue, it could spur extensive conversion of tropical forests and food production to energy generation.

So what should be done? We have two ideas.

The first is to update the fuel standard’s almost 10-year-old estimate of the greenhouse gas impact of increased crop production. There is considerable evidence that the current estimate greatly understates actual emissions. Crops such as soybeans would become less attractive for renewable diesel production if the standard were corrected.

It’s an elegant and seemingly simple adjustment. The problem is that there is no scientifically established method for making an estimate, even after extensive study. Picking a new number risks interminable debate and lawsuits by the oil industry and other threatened interests.

We lean toward a second idea, which is to cap the use of crops to produce fuels. Most environmental groups favor this approach, and the California Air Resources Board has considered it. But while it’s a straightforward concept, it would be complicated to implement and would have to be updated frequently to provide flexibility to companies as conditions change.

Whatever approach regulators take, they should do it quickly, before the rapid growth of renewable diesel has irreversible repercussions. Inaction risks sending one of California’s key climate policies off course in ways that will reverberate around the world.

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Colin Murphy is the deputy director of the UC Davis Policy Institute for Energy, Environment and the Economy, where he co-leads the Low Carbon Fuel Policy Research Initiative. Daniel Sperling is a professor of engineering and environmental science and policy at UC Davis and a former member of the California Air Resources Board. They wrote this column for the Los Angeles Times.

Real World Economics: How Haiti now reflects age-old economic teachings

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Edward Lotterman

Haiti, the Caribbean country with a tragic history that shares the island of Hispaniola with the Dominican Republic, between Cuba and Puerto Rico, has become a failed state in the truest sense of the word.

Government has all but collapsed. Feuding criminal gangs vie for control. The value of output, already low, is falling and health and nutrition, already bad, are worsening.

With the eyes of the world focused on acute geopolitical dangers in Ukraine and the Middle East, there has been passing attention paid to an island country with a population of 11 million, who are overwhelmingly Black. Understandable but tragic.

Haiti’s travails eventually may affect our nation slightly, but with the closest sea distance to Florida six times greater than that from Cuba, there is little chance of a small-craft armada like the 1980 Mariel boatlift that brought 125,000 Cubans to our country. The Biden administration, already tarred as having failed on immigration, studiously avoids the issue.

But going beyond the immediate foreign policy challenge, it might be good to start paying attention. Why? Because Haiti’s situation forces us to think about age-old economic questions to which we still have no clear answers: Why are some nations almost inherently more productive and prosperous than others? Why do some have more successful governments? Why do some have societies that are more cohesive and just than others?

Why, for example, is Uruguay both more prosperous, more stable politically and with better social indicators of health, nutrition and education than its otherwise similar neighbor Argentina just across an estuary? Why did 19th century Japan take off economically when no other Asian country did? Why did the republics of the Netherlands and the city-state of Geneva have such dynamic economies and intellectual ferment in the 1700s, while France, Spain and other monarchies stagnated?

And at a different level, why do Oregon and Minnesota, for example, consistently best Alabama and Mississippi in every economic and social indicator?

Sometimes we can get “new ideas from dead economists,” in a phrase Todd Buchholz used as a title for his excellent introduction to economic thought.

Eighteenth-century Scottish philosopher Adam Smith knew a little about Haiti, but his ideas sift through factors that explain its situation — vis-à-vis even its more prosperous neighbor, the Dominican Republic. A man-made line geographically divides the island. But a world divides their economies.

One may not always agree with Smith’s conclusions, but his questions and insights remain invaluable to both curious and influential minds.

In his best-known 1776 book, “An Inquiry into the Nature and the Causes of the Wealth of Nations,” Smith argued that prevailing beliefs in his day in having government take large roles in economic activity were not just wrong, but strongly counter-productive. And he railed against remaining elements of the medieval guild system that sharply limited who could do what in professions and skilled trades.

However, perhaps more importantly but less well known, Smith had written an earlier relevant book. In “The Theory of Moral Sentiments,” Smith examined how and why people, motivated in great part by self-interest, still develop empathy, a concern for others, a willingness to cooperate with others, and how this trait contributes to effective and just societies.

So one might ask what sorts of policies Haiti has followed? What sort of social ethos has developed there? And how would Smith explain this?

Generally through history, regardless of laws that remain nominally in effect, Haiti has been a kleptocracy, a political and economic system based on theft by controlling individuals or groups.

While Christopher Columbus never actually got to any of our 50 states, he landed on Hispaniola on his very first voyage. Within a few decades, virtually all of the native population died of violence, disease and brutal slavery.

Spain retained a colonial government on most of the island, with the French eventually gaining the western section, what is now Haiti. Both were repopulated by slaves violently brought from Africa by English merchants, who financed the slave ships that handled the largest part of the trade. This brought enormous wealth to Britain during Smith’s life, something he notes, but does not really examine.

Slave labor for sugar cane production in Haiti was probably the most brutal and deadly in any slave nation. There were numerous slave revolts in the 1700s, all put down with extreme cruelty and savagery. One in the 1790s eventually led to the nation’s independence in 1804.

However, France still had clout to force the Haitians pay reparations to France for property taken — including themselves as former chattel. The initial payment was five times the country’s annual budget, so interest accrued. In the 1920s, what is now Citibank took over the Haitian promissory note from France and collected payments until 1947.

Adding yet another factor of U.S. involvement, in addition to our commercial interests always having influence in Haiti’s economy and government, we sent Marines to occupy the whole country in 1914. They stayed until 1931. So Haiti was a de facto U.S. colony for nearly two decades. Moreover, after leaving, we manipulated who had power and oversaw the ascension of Francois Duvalier, who ran a brutal dictatorship for 31 years.

So U.S. hands are covered with Haitian blood. We were part of the process by which that country became dominated by a French-speaking economic and political elite that extracted wealth at the expense of the Creole-speaking masses.

De facto economic institutions and policies in Haiti have left little to market forces. Outright corruption and a bureaucratic system of licenses and permits dominate resource allocation — similar to the merchant guild system that Smith denounced. The judicial system is corrupt. Government fails to deliver even basic services.

All this tragic history means that Smith’s “moral sentiments” never had an opportunity to prosper in Haiti as they had in 1700s Amsterdam and Geneva. Nor have the “mediating structures” that sociologist Peter Berger and theologian Richard Neuhaus saw as vital to society gained a footing. All of these traits, when generally adopted by a population, become “values,” in that they bring value to a society and an economy.

Will they ever in Haiti? The U.S. occupation a century ago gave Haiti roads, water and sewer systems along with schools and clinic buildings. But it also cemented the power of the elites and established a brutal dictatorship. U.S. peacekeepers sent in 2004 restored order and made room for some political reform, but a massive earthquake in 2010 and hurricane in 2016 were harsh blows.

So Smith gave us some reference points into the knotty issues of failing governments and economies as do many more recent scholars including not only Berger but Robert Putnam on “social capital.” Robert Axelrod’s insights on “the evolution of cooperation” deals with issues parallel to Smith’s moral sentiments.

And what does this say about us? With rampant road rage, random shootings, customers throwing hot coffee back in the faces of food servers, obstreperous passengers in airplanes, brawling melees at amusement parks, malls and on cruise ships, one may wonder whether our own moral sentiments are dying, our mediating structures collapsing and our social capital melting away. Perhaps they are. We are more bitterly divided now than we have been for more than a century. Haiti offers us a lesson both about the underlying reasons, and the consequences.

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St. Paul economist and writer Edward Lotterman can be reached at stpaul@edlotterman.com.