Category Archives: economy

Ohio Transportation and Energy ; Federal Reserve Beige Book of Economic Conditions

Posted on January 19, 2011 by | Leave a comment

The Federal Reserve published its recent Beige Book Report covering economic conditions of each banking district. During the past two days, the retail and manufacturing sectors of Cleveland Federal Reserve report were posted. Today, the following post covers economic conditions of Ohio freight transportation and energy industries.

Freight transport executives reported that shipping volume was stable during the past six weeks. Looking ahead to 2011, most carriers expect growth to be somewhat stronger than they experienced in 2010. They also expect that activity will be more in line with normal seasonal patterns. Almost all of our contacts reported rising prices for diesel fuel, some of which are being passed through to customers via a surcharge. Capital outlays remain at relatively low levels. Spending in 2011 is expected to rise modestly as freight carriers are forced to replace aging equipment. However, some carriers are considering leasing new equipment versus buying, as rising prices for new tractors constrain purchases. Hiring is for replacement only. Two of our contacts noted that they would like to begin hiring additional drivers, but it is difficult to find qualified applicants. Wage pressures are beginning to emerge due to a growing problem with driver turnover and a tightening of the driver pool.

Although energy production is more in-line with manufacturing process, energy is consists of modes of transportation and distribution, which utilizes the Ohio trucking sector. That is why the report on energy continues below.

Reports indicate that oil and gas output from conventional wells was fairly steady during the past six weeks. A small increase in gas production is expected if very cold weather persists. Production from Marcellus shale was somewhat higher and is expected to continue to increase. Spot prices for natural gas have increased slightly with the onset of winter, while wellhead prices paid to independent oil producers were fairly stable. Coal production has been steady since our last report, with little change anticipated in the near term. Spot and contract prices for coal were generally stable; however, the price of metallurgical coal increased slightly. Other than a rise in diesel fuel prices, equipment and material costs have been flat. Staffing has not changed, and it is expected to remain at current levels for the near term.

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Ohio Manufacturing; Federal Reserve Beige Book of Economic Conditions

Posted on January 18, 2011 by | Leave a comment

The Federal Reserve published its recent Beige Book Report covering economic conditions of each banking district. Yesterday, the retail sector report of the Cleveland Federal Reserve was posted. Today, the following post covers economic conditions of Ohio manufacturing.

Reports from District factories indicate that demand was stable or rising during the past six weeks. Compared to year-ago levels, production was higher, with many contacts experiencing low double-digit increases. Several manufacturers noted that while their production levels declined recently–following seasonal trends–orders were above expectations. In general, manufacturers are fairly optimistic and expect at least modest growth during 2011. A few noted that lead times for the delivery of raw materials were getting longer, which they attributed to rising demand across industry sectors. Steel producers and service centers all reported that shipping volume had increased since our last survey, with shipments being driven by energy-related, transportation, and heavy equipment industries. Steel executives we spoke with have heightened expectations for business growth during 2011. District auto production showed a slight decline during November on a month-over-month basis. Compared to a year ago, domestic auto makers showed a substantial rise in production, while foreign nameplates posted a modest decline.

Capacity utilization continues to trend higher, approaching what many of our respondents consider to be more normal rates. Inventories are close to targeted levels. Capital spending plans are conservative, with only a few of our contacts expecting to increase capital budgets for 2011. Outlays are aimed primarily at maintenance, equipment upgrades, and increasing production efficiencies. Prices for agricultural and metal commodities, steel, and scrap remain elevated, while the prices of most other raw materials have been stable. Several producers announced selective product price increases to reflect a rise in the cost of steel and agricultural commodities. Most contacts told us that they have expanded their permanent, full-time payrolls slightly since our last survey, and they will continue hiring at the same pace during 2011. Permanent new hires were largely salaried. To meet rising demand, employers are extending production hours or bringing in temporary hourly workers. Wage pressures are contained. Companies are continuing to restore merit increases and payments to 401K plans.

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Ohio Retail Business; Federal Reserve Beige Book of Economic Conditions

Posted on January 17, 2011 by | Leave a comment

The Federal Reserve published its recent Beige Book Report covering economic conditions of each banking district. Each day this week, one sector of the Cleveland Federal Reserve report will be posted. Today, the following covers economic activity of Ohio’s retail sector.

Reports from retailers on the holiday shopping season were generally positive. General merchandise stores had the strongest results, while activity at small specialty outlets was mixed. Almost all of our contacts said that sales increased in the low to mid-single digits when compared to year-ago levels. Some retailers noted that consumers are becoming more confident, and it is beginning to show in their buying patterns. Nonetheless, we still heard mixed reports on purchases of discretionary items. Looking forward to the first quarter of 2011, retailers generally expect transactions to rise in the low to mid-single digits on a year-over-year basis, and they believe that rising sales will include more discretionary items. Vendor pricing was generally stable. Most retailers plan a modest increase in capital spending during 2011 for remodeling, expansion, and e-business. Hiring was limited to temporary holiday workers and no pickup is expected in the new year.

Auto dealers reported new vehicle sales during November were steady to up slightly on a month-over-month basis. When compared to year-ago levels, sales were generally higher. A few of our contacts also noted an increase in leasing activity. Looking forward, dealers expect sales to follow seasonal trends through the winter months. However, they anticipate that sales will be slightly higher than the prior year’s level. New car inventories are in line with demand. Reports on used vehicle purchases were mixed. Little change was seen in credit availability. Buyers with high credit scores can readily obtain financing. Dealers’ spending on showroom upgrades to comply with factory mandates remains modest. More aggressive capital outlays are dependent on sustainable demand.

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111th Congress Wrap-Up

Posted on January 11, 2011 by | Leave a comment

By Rep. Steve Austria

As we embark on a new year, it is important to reflect on the many challenges our nation has faced and the lessons we can apply from the past year. Recently, the U.S. House of Representatives concluded its legislative business for the year with the passage of a two year extension of the Bush tax cuts and a continuing appropriations resolution to keep the government funded through March.

I continue to have serious concerns about the outrageous amount of government spending and look forward to the new Congress and the opportunity to begin addressing our fiscal and economic challenges. Below is a brief summary of the major legislative and policy issues that came before the 111th Congress.

Spending and Debt

Last year, our nation witnessed the passage of several pieces of sweeping and costly legislation that I opposed, including the $791 stimulus, the second half of the $700 “bailout” bill, and a $400 billion omnibus bill that included over 10,000 earmark projects. The runaway spending we witnessed last year, and that has continued this year with the passage of the $1 trillion government health care reform bill, is simply unsustainable. The national debt is now approaching $14 trillion with each American’s share currently surpassing $44,000. Yet Congress adjourned the 111th legislative session with the passage of yet another nearly $1 trillion appropriations measure to keep the government operating through March of next year.

Jobs and the Economy

Despite exorbitant government spending, we continue to experience unacceptably high levels of unemployment. Just this past month, unemployment rose to 9.8 percent.

Unfortunately, the past two years there were few legislative accomplishments to improve the lagging economy and high unemployment. Instead, we witnessed the opposite – with the passage of the so-called stimulus bill, unemployment rose from 8 percent to nearly 10 percent. One of the more pervasive shortcomings was Congress’s failure to enact a budget resolution or appropriations measure this year. Legislation was once again focused on short-sighted policies, including only temporary extensions of the Bush tax cuts and Medicare reimbursement for physicians.

In the absence of any meaningful, long-term action on these issues, we continue to perpetuate a climate of uncertainty with negative implications for all Americans from small businesses to farmers to families.

The Local Economy

While the nation’s economy continues to struggle, there has been substantial progress in helping our local area get back on track with the formation of the Blue Ribbon Commission and the creation of new missions at the Springfield Air National Guard Base.

The new missions will help support both the current National Air and Space Intelligence Center mission at Wright Patterson Air Force Base in addition to the Springfield Air National Guard Base.

The Blue Ribbon commission made substantive progress with its release of recommendations on how the community can enhance regional economic opportunities through partnerships with the business community, academia and government in the Dayton area. You can learn more about the commission by visiting my web site.

Health Care

After a year-long debate and a series of backroom deals, in March Democrats were able to garner the support they needed to pass the nearly $1 trillion health care bill into law. While I agree that we must find a way to lower health care costs and improve access to physicians, this new law equates to a massive government intrusion into our health care system. Many in Congress have called for the repeal of the portions of the bill that will limit health care options and increase pressure on financially strapped states.

What Lies Ahead

The conclusion of the 111th Congress, brings with it a new opportunity to curb the unprecedented spending that is endangering the future economic growth and prosperity of our nation. In 2011, we must be focused on less Washington spending, reducing our nation’s debt and most importantly, creating economic growth with new jobs.

As a newly appointed member of the House Appropriations Committee, I understand the difficult spending decisions that will need to be made as we seek to address these important issues. I look forward to addressing the challenges that lie ahead in the New Year.

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Rep. Austria On Economic Policies of Lame Duck Congress

Posted on December 22, 2010 by | Leave a comment

By Rep. Steve Austria

Last Thursday, the House approved an agreement reached between President Obama and Congressional Republican leadership to extend the Bush-era tax cuts. The tax package ensures that those tax rates will not increase on January 1, 2011 and is extended for two years. It also includes a cut in the pay roll tax, establishes an estate tax rate of 35 percent and provides for a 13 month extension of unemployment benefits.

Many in Congress, like myself, would have preferred a permanent extension bringing more certainty to the financial and business markets but this may be the best opportunity we had to ensure that there would not be a tax increase. If we hadn’t taken action before the end of the year we would have seen significant tax hikes on small businesses and hard-working families.

This bill will help bring some certainty to the markets, which is needed now to grow the economy and create new jobs. When Speaker Boehner and House Republicans take over in January, our immediate focus will be to eliminate wasteful Washington spending and reduce the debt.

Appropriations

This year, Congress failed to enact any of the 12 appropriations measures or pass a budget to set spending levels. Instead, Congress has relied on short-term funding bills to keep the government running as they debated whether to punt the issue to the next Congress or consider a comprehensive appropriations measure, or omnibus. Late last week, Senate Democrats attempted to push a massive, $1.1 trillion omnibus spending bill that included additional funding for a controversial health care bill and funding for more than 6,000 earmarks. The bill was pulled from consideration due to strong opposition to its cost.

Last night, the House agreed to a continuing resolution measure to keep the government operating until March of next year.

Blogger Note: As U.S. Representative Austria mentioned above, a Pelosi-Reid led Congress hasn’t passed a national budget since entering office. They seemed more interested in ramming their special interest projects like socialist health care policy and gay rights through the legislative process than mundane national interests like national budget. Socialist and humanist agendas cannot be funded by something as restrictive as a budget or a balanced budget.

More important for us “little stinky people,” whose odor liberals like Sen. Reed cannot stand, was their failure to make tax cuts permanent. The only reason this is important is the fact that all previous temporary tax cuts have failed to stimulate the economy as claimed. During economic downturns (not to mention great recessions), people hold on to the extra cash while waiting for the economy to rebound. Surely the snooty liberals like Pelosi and Reid known this. According to some economists, Americans only spend the extra cash gained from tax cuts when those cuts are permanent. Now that millions are out of work, out of their homes, and out of cash thanks in part to ACORN supporting Democrats, I suspect the economists may see a slight exception to the rule.

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Dayton Development Coalition Scam May Be Coming To An end

Posted on December 20, 2010 by | Leave a comment

By John Mitchel

RE: “Officials to review coalition’s funding”, Dayton Daily News, December 18, 2010: For years
our public servants have been writing blank checks to the Dayton Development Coalition on the
pretense that they and they alone are responsible for “saving” jobs at Wright Patterson. Rarely, if ever
do the Coalition or the politicians give credit to Wright Patt leadership or the folks that actually do the
work that has established Wright Patterson as a national treasure.

Instead they heap credit on themselves and the Coalition’s President and CEO who was paid $285,000
in 2005 — that’s about double what the Governor of Ohio earns and more than the Vice-president of the
United States. And don’t believe the lie that those exorbitant salaries and bonuses are not funded with
taxpayer dollars. You see, a basic principal of finance and economics teaches us that money is “fungible,”
or is universally exchangeable between two obligations, in this case between public corruption and national
defense or local infrastructure. Unfortunately the corrupt politicians and their insider sycophants at the
Coalition are the big winners here.

However it looks as though enough is enough and at least some elected officials are demanding transparency
at the Coalition and elsewhere. It’s time to clean out the barn and shutting down the Dayton Development
Coalition would be a good place to start.

Other commentary and analysis by John Mitchel may read at www.reformcongress.com.

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“End-of-Life Consultation” Provision Being Implemented By U.S. Health & Human Services

Posted on December 15, 2010 by | Leave a comment

By Daniel Downs

The LifeTree organization recently reported the U.S. Department of Health was implementing “death panels” measures under then newly passed Obamacare. The infamous Section 1233 of HR 3200 would have federalized voluntary end-of-life consultations, but the section was eventually dropped.

On 29 November, however, the Federal Register (page 73406) published a funding new rule for “voluntary” advance care planning consultations for Medicare and Medicaid patients.

A very enlightening analogy is LifeTree’s equivalence of the new regulation to so-called voluntary TSA pat-downs and full-body scans. It is like a thief asking you for money while pointing a gun at your head.

Some are trouble by the media’s failure to report the new ruling. However, silence of the part of the media is probably due to it similarity to current policy.

When my parent was in hospital, we were asked about living will. We were given information about making plans for emergencies and end-of-lie decisions.

LifeTree researchers are more concerned about the implementation of the other part of the original end-of-life consultation legislation that is already making its ways through Congress. The bill is called the “Advance Planning and Compassionate Care Act of 2009.” It was introduced by Democrats Earl Blaumer (OR) and David Rockefeller (WV) both proponents of assisted suicide. Blaumer is also an advocate of the health care rationing groups and process known as “Physician’s Orders for Life Sustaining Treatment” (POLST).

As explained by Ione Whitlock, POLST is similar to the current document based directive (living will) through which a person’s medical treatment preferences are stated and honored. Under POLST, the document serves the medical process of repetitive questioning by various health care givers. The process is rigged to pressure the patient and/or family toward accepting medical ethics committees’ goals. Those goals advance their policy about advanced illness and conditions as well as reducing inappropriate treatments (often life sustaining treatments).

Recent experience with my parent’s medical care seemed a lot like POLST. The seemingly endless questionnaires by all kinds of nurses, doctors, therapists, and other specialists were numbing. Each new treatment by a different specialist and each new place of care (even in the same hospital) were met with the same series of questions. The same things were asked over and over. What I’m not certain of is whether the goal was get us to accept a predetermined series of treatments–maybe in part. Maybe, it is a conditioning process for greater acceptance of the POLST legislation.

The bioethicists who devised the POLST Paradigm hyped the documents’ use as tools for dignity and autonomy. The documents do leave the door wide open to an “autonomous” decision to hasten death. Yet, POLST owes its existence more to Oregon’s experiment with health care rationing than it does to the state’s assisted suicide experiment, according to Whitlock.

Do you remember how Terri Shiavo’s life was ended by removing her feeding tube? That is the ultimate health care rationing measure under POLST.

The bottom-line is POLST facilitates not only assisted suicide but also imposed death. “It is also an effective cost containment device. It creates an illusion of ‘self-determination’ while fostering consensus ethics. In short, the POLST process rigs the system in favor of pressuring the patient and family [to choose death].”

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Americans Still Strongly Favor Audit of the Fed

Posted on December 14, 2010 by | Leave a comment

Looks like the Republicans want the fox watching the henhouse. Ron Paul, one of Congress’ sharpest critics of the Federal Reserve, has been chosen to lead the House subcommittee that monitors the Fed’s activities, and he promises to push again for a full audit of the nation’s central bank.

A new Rasmussen Reports national telephone survey finds that Americans remain overwhelmingly in favor of auditing the Fed: 74% of Adults think it’s a good idea, and just 10% are opposed. Sixteen percent (16%) are not sure.

This is consistent with previous surveys and matches support for an audit found in July of last year when Paul’s audit proposal first began gaining attention in the House. Support has risen as high as 80% since then.

Fed Chairman Ben Bernanke opposes a public audit of the Fed’s monetary policies, but just 29% of Americans hold a favorable opinion of Bernanke. Only 36% of Adults now are at least somewhat confident in those who advise President Obama on economic policy.

Source: Ramussen Reports, December 10, 2010

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Small Business Lending Fund Update

Posted on December 13, 2010 by | Leave a comment

The U.S. Department of the Treasury (Treasury) is expected to soon release the criteria small banks must meet in order to participate in the $30 billion Small Business Lending Fund (SBLF) created by the NSBA-supported Small Business Jobs and Credit Act.

Meanwhile, Sens. Mary L. Landrieu (D-La..), chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and George LeMieux (R-Fla.) recently sent a letter to Treasury Secretary Timothy Geithner, urging swift implementation of the SBLF and the State Small Business Credit Initiative, which was created by the same legislation.

NSBA echoes this call for immediate implementation. The SBLF has been on the drawing board for long enough. It is high time that it be deployed. America’s small businesses still are struggling through a destructive credit crunch and the realization of the SBLF stands to help the situation.

According to an internal poll conducted by the Independent Community Bankers of America (ICBA), nearly a quarter (24 percent) of their 5,000 community-banks members planned to utilize the SBLF. This means 1200 community banks stand poised to increase their small-business lending.

NSBA joins Landrieu and LeMeiux in urging Treasury to expedite the realization of the SBLF and State Small Business Credit Initiative.

Source: NSBA, December 7, 2010

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Why Ending Bush Tax Cuts Of Americans Making Over $250,000 Is Not A Good Idea

Posted on December 5, 2010 by | 1 comment

If the Democrat economic plan were not primarily beneficial to government coffers, I would be for it.
I serious doubt the economy will benefit greatly by merely maintaining the Bush tax cuts for the middle. Those with incomes over $250,000 may benefit more, but they also have more disposable income to spend. Spending helps maintain GDP. More importantly, it maintains tax revenues. Therefore, I have to agree with the Republicans. Raising taxes on anyone during a prolonged economic recession is not a good idea. Because the high-income group has more disposable income to spend, they are key to keeping a modicum of economic stability.

Democrats are doing a very poor job of making themselves look good. They are showing Americans that their agendas are more important than the common good.

Someone is bound to respond: Well, duh!

However, when looking at taxation and economic growth in the long-term, I think Americans with taxable incomes over $250,000 should pay considerable higher taxes.

How could that be good?

First, it’s contiguous with founding idea of economic liberty. Thomas Jefferson is representative of a large numbers early Americans who believed the rich should pay for government services to the poor. They believed it was immoral for rich Americans to have much while poor Americans lacked. Thomas Jefferson was no welfare socialists either. Like many others, he opposed low paying wage labor because it was a form of slavery.

Second, the rich paying for welfare to the poor should inspire them to change the political economy engendering poverty and welfare. Jefferson seemed to think making the rich pay to help the poor would motivate the wealthy to devise programs to ensure the poor actually gained skills by which to earn high incomes in order to live independent of rich charity or tax funded government services. I suspect Jefferson would have favored living wage standards as opposed to minimum wages.

Lastly, it seems unjust for the working poor and the middle class to pay for problems created by the wealthy and societal institutions. The Courts didn’t have to encourage the working poor to adopt socialism in order establish economic rights against big manufacturing firms. The Courts could have forced Congress to deal with the issue of low wage slavery. Against the ready argument that freedom of contract and market value would be violated, the Courts and other authorities could have applied Adam Smith’s capitalistic view that large manufacturing corporations were quasi-government institutions requiring regulation, i.e., regulation to prevent low wage slavery. It was the founding generation, those like Jefferson, who thought it unjust to tax all Americans (including the working poor and middle class) to cover the problems of the poor.

Remember, Jefferson wrote “all men were created equal,” which appears not to mean equal opportunity to pay taxes for welfare.

Besides all of that, the stock markets have not declined to 1990 levels, which indicate a somewhat healthy economy still exists–that is if a political economy can be regarded as such. It is healthy because those making over $250,000, like the Democrat and Republican politicians on Capitol Hill, are working to keep their stock portfolios profitable.

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