Category Archives: economy

Free Trade Benefits Ohio

Posted on October 24, 2011 by | Leave a comment

By U.S. Representative Steve Austria

Recently, Congress came together in a bipartisan way to pass crucial free trade agreements between the United States and Panama, Colombia and South Korea. These trade agreements will help create good-paying jobs in the United States without another government spending plan. It will also boost economic growth by opening new markets for U.S. goods and services.

According to this administration, an estimated 250,000 jobs will be created, and every additional $1 billion in exports generates 25,000 new jobs in the United States. These will be long-term, sustainable jobs in the private sector – not temporary government jobs. Compared to the so-called “job-creating” stimulus spending plan that I voted against, this is a significant opportunity for agriculture, manufacturing and many other industries to competitively export their goods – creating private sector jobs in the process.

These trade agreements do not pick winners and losers, nor do they give any preferential treatment to companies in the United States – it simply levels the playing field with other countries. When given the chance to compete on the same level, American products and companies can succeed and remain leaders in the global marketplace.

Unfortunately, we are losing too many jobs and businesses to other countries. The burdensome, unnecessary government regulations that are being implemented by bureaucracies such as the EPA, combined with high tariffs on our exports, and one of the highest tax rates of any industrialized nation in the world, are driving companies out of the United States and overseas.

The free trade agreements will help shoulder that burden, by competitively pricing American exports. Furthermore, it will allow us to produce more goods in the United States without the barriers that drive up the cost of exports and make our country less competitive in the global marketplace.

In my district alone the benefits of international trade are enormous. There are approximately 89 businesses exporting more than $3 billion of products which support more than 9,700 jobs in our area.

I have always believed that when private businesses are given the opportunity to grow and succeed, they will. Take Bluegrass Farms of Ohio, a food grade soy business from my district. This small business currently employs 17 people in Jeffersonville and contracts with more than 40 local farmers to grow their products. Over 90 percent of the soy they produce is shipped to Asia, and a free trade agreement with South Korea could easily double their exports. The more we relieve the restrictions on allowing products to be exported throughout the world, the more small businesses like Bluegrass Farms can grow and hire locally right here in the district.

Similarly, these trade agreements will help American manufacturers like Ohio-based Procter & Gamble. Over 40 percent of their jobs in Ohio support their business outside of the United States in fields such as R&D, design, logistics, and marketing. They also export products like the Gillette Fusion from the United States to 92 countries. The Fusion is manufactured in two places; Boston, Massachusetts and Berlin, Germany. Both Korea and Colombia have tariffs on razors of 10 percent and 15 percent, respectively. The European Union’s FTA with Korea took effect in July, and its agreement with Colombia will follow shortly. According to Proctor and Gamble’s own analysis, had we not passed these trade agreements, the razors that are made in Germany would have been 10-15 percent cheaper to import just because their politicians were able to pass their agreement, and ours weren’t. Workers in the United States are the most productive in the world, but even the most productive who pay a 15 percent penalty, just for being from the United States, will have a hard competing in the international marketplace.

Many people have been asking for a solution to the economic downturn, and letting the markets work their will is one of the best ways to achieve it. The passage of these free trade agreements brings a host of opportunities for businesses in Ohio and around the country – and most importantly, the opportunity for more American jobs, here in America.

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Grandparents Caring for Children

Posted on September 25, 2011 by | Leave a comment

By Marian Wright Edelman

At a time in life when many are beginning to ease into retirement and enjoying a little more free time, Mr. and Mrs. B. found themselves unexpectedly starting all over again-struggling to care for their adopted daughter’s two young sons. Their daughter’s bipolar disorder was recognized very late, and though she stays involved in her sons’ lives, neither she nor their father were able to be a full-time parent. So the boys went to live with their grandparents. As in all families with children, there’s always something happening that demands attention and this family has had very serious needs. When their youngest grandson was also diagnosed with bipolar disorder, Mr. and Mrs. B. had trouble finding a good doctor to care for him. Then Mrs. B. was diagnosed with cancer. But
there are no regrets: “There’s no ‘us time,'” Mr. B says, “but I would do it again in a heartbeat.”

Their family isn’t alone. Lots of us who are grandparents are used to stepping in and caring for grandchildren from time to time. I know my husband and I have spent many evenings and weekends on “grandma and grandpa duty,” and loved every wonderful but exhausting moment! But many grandparents and other family members are going far beyond the occasional Saturday night or long weekend. Since all children deserve safe, permanent and loving families, when parents can’t care for their children-they may have died, be incarcerated, or be struggling with substance abuse or other health or mental health challenges-relatives like Mr. and Mrs. B. often end up “parenting a second time around.” They step in to give their grandchildren or nieces or nephews the love and stability they need and avoid the need for foster care with strangers.

As rampant unemployment and housing foreclosures ravage families across our nation, an increasing number of children are living in households headed by grandparents and other relatives, often three generations sharing scarce resources due to the recession. Nearly 7.8 million children live in households headed by a grandparent or other relative. More than 2.5 million grandparents report they are responsible for grandchildren living with them-a third with no parent present. Black children are twice as likely as all children to live with their grandparents or other relatives only.

These grandparents and other relatives are providing vital care, stability, and continuity to millions of America’s most vulnerable children. They are keeping children safe and families together: children raised by relatives are more likely to be placed with siblings and less likely to lose touch with their cultural traditions and community connections. But this enormous responsibility can have many effects on caregivers’ own lives and financial stability. Many are still working and many others live on fixed incomes. Twenty percent of grandparents raising grandchildren are poor and many relative caregivers need financial help and other forms of support. Often caregivers unexpectedly thrust into this role may be hesitant to share their new challenges with others, and if they do, often find it difficult to connect with networks to find programs and assistance for which they are eligible.

That’s why on September 15th grandparents and other relative caregivers from across the country gathered on the West Lawn of the U. S. Capitol to participate in the Fourth National GrandRally for Grandparents and Other Relatives Raising Children sponsored by AARP, Child Welfare League of America, Children’s Defense Fund, Generations United, GrandFamilies of America, and National Committee of Grandparents for Children’s Rights. The GrandRally saught to educate Congress about the importance of relative caregivers, the challenges they face, and the contributions they make. With scarce resources and a tumultuous economy, relatives’ critical role in keeping children safe and in stable homes will be highlighted along with the important role Social Security plays in helping caregivers assume care of related children.

The Children’s Defense Fund often gets calls from grandparents and other relative caregivers seeking sources of financial assistance. In recent months, many have called to tell us they’ve been laid off and need financial help to continue caring for their grandchildren. They are often embarrassed by their circumstances and afraid to contact public agencies for assistance, fearful their grandchildren will be taken away and placed in foster care. Grandparent caregivers often face barriers to participating in the Supplemental Nutrition Assistance Program (SNAP/Food Stamps) or qualifying their grandchildren for the National School Lunch Program. And while Social Security provides needed support for grandparents, grandchildren aren’t always eligible for benefits.

Over the last decade youth unemployment has soared, adding extra stress for grandfamilies already struggling to keep grandchildren in high school and now worrying about them finding a job if they do graduate. The percentage of youths ages 16-19 employed in 2010 was the lowest since the end of World War II. While specific data on youths with relative caregivers are unavailable, the teen employment rate dropped to 27 percent in 2010 – only one in five teens in a low income family was working. Even youths whose grandparents helped them graduate from college are likely to be employed at much lower salaries in jobs that do not use their college degrees. Nearly half of all Associate Degree holders and one-third of Bachelor Degree holders were mal-employed in 2010.

Three past GrandRallies inspired caregivers to establish support groups and create kinship navigator programs to connect children to supports for which they are eligible. Relative caregivers organized state and local coalitions, held State GrandRallies to educate local policymakers about children’s needs and conducted statewide kinship care conferences. Some were invited to return to Washington, D.C. to share their stories at Congressional briefings.

For more information about the GrandRally, visit www.grandrally.org.You can also find out more about children in your own state being raised by grandparents and other relatives on the AARP Website.

Marian Wright Edelman is President of the Children’s Defense Fund whose Leave No Child Behind® mission is to ensure every child a Healthy Start, a Head Start, a Fair Start, a Safe Start and a Moral Start in life and successful passage to adulthood with the help of caring families and communities. For more information go to www.childrensdefense.org.

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Women Continue to Lose Jobs in the Public Sector

Posted on September 16, 2011 by | Leave a comment

(Washington, DC) A new analysis by the Institute for Women’s Policy Research (IWPR), finds that women employees lost 81 percent (473,000) of the 581,000 jobs lost in the public sector since December 2008. Many of these jobs were lost at the local and state level where women in the public sector are most likely to be employed as elementary and middle school teachers.

At the local level between December 2008 and July 2011, the number of women in public sector employment decreased by 4.7 percent while the number of men decreased by only 1.6 percent. At the federal level in the same period, women employees saw a decrease of 3.2 percent in their ranks while the number of men employed actually increased by 5.3 percent, possibly due to increased employment in areas such as homeland security and civilian employment in the Department of Defense.

Women employed at the local level in the public sector are most likely to be elementary and middle school teachers, teacher assistants, secondary school teachers, and secretaries and administrative assistants. Men employed at the local government level are more likely to be police and sheriff’s patrol officers, elementary and middle school teachers, secondary school teachers, janitors, and firefighters.

Due to the recession and the dwindling of economic stimulus funding, state and local government budgets have decreased, resulting in layoffs. While the private sector gained 17,000 jobs in August, the public sector lost an equal number resulting in a zero jobs gains last month.

“The American Jobs Act proposed by President Obama will ensure investment in the country’s infrastructure and education,” said Jeffrey Hayes, senior researcher at IWPR. “The boost in funding will help women employees in the public sector, in turn allowing them to invest in their families, their communities, and in the economy overall.”

The President’s proposal includes a $30 billion investment in education to prevent the layoffs of up to 280,000 teachers while keeping more law enforcement officials and firefighters on the job. By allowing districts to use the money for longer school days or years and to support after school activities, working parents might benefit from knowing their children are being cared for in a safe and instructive environment.

The Institute for Women’s Policy Research (IWPR) conducts rigorous research and disseminates its findings to address the needs of women and their families, promote public dialogue, and strengthen communities and societies. IWPR is a 501(c)(3) tax-exempt organization that also works in affiliation with the women’s studies and public policy programs at The George Washington
University.

(Underlined emphasis above was added by the editor.)

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The Truth About Obama’s Jobs Bill

Posted on September 13, 2011 by | Leave a comment

By The National Inflation Association

Last Thursday evening, President Obama gave a speech to a joint session of Congress discussing the jobs situation here in America. The purpose of Obama’s speech was to convince the American public and their elected representatives in Washington to support Obama’s new $447 billion ‘American Jobs Act’, which has a cost that is 49% larger than the $300 billion act most people were expecting. NIA believes this bill will do nothing to reduce unemployment in America and that it is nothing but another stimulus bill in disguise that will add to our budget deficits.

Obama’s bill proposes a $4,000 per employee tax credit for businesses that hire somebody who was previously unemployed for 6 months or more, at a cost of $8 billion. At the same time, Obama wants to extend emergency unemployment compensation (EUC), which allows Americans who have exhausted standard unemployment benefits that last for 26 weeks to continue receiving them for between 20 and 53 additional weeks. EUC benefits are set to expire at the end of 2011 and continuing them through the end of 2012 will cost U.S. taxpayers $49 billion.

It is totally absurd for Obama to give employers money to attempt to hire people he is simultaneously paying to stay out of work. What makes this even more outrageous is that employers have an incentive not to hire recently laid off workers, when only those unemployed for 6 months or more will bring them a $4,000 check. If this bill is passed it will make the unemployment situation in America far worse than it already is.

NIA has heard from members who own farms and have positions on their farms available, but can’t find anybody interested in working for them and filling the available positions. Every time they hire somebody to work on their farm, the worker purposely does a poor job and tries to get fired. Their sole purpose of getting a job is to convince their local unemployment agency that they are trying to find employment so that they can keep receiving unemployment benefits, when in reality they are trying to take advantage of the system. Continue reading →

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Obama on Jobs: Missing “Rigid” Ideas

Posted on September 13, 2011 by | Leave a comment

By Cameron Smith

Currently, there are almost 600 bills before Congress that contain the word “job.” Politicians have talked about “job creation” nonstop. Oddly enough, this rhetoric demonstrates that those political leaders are listening to what concerns Americans, primarily their economic future.

Their responses fall into two fundamental categories: Those who believe that the government creates jobs and economic growth, and those who believe the private sector accomplishes those ends. The former believe that substantial government spending charges the economy in troubled economic times while the latter tend to believe an unhindered marketplace will correct itself.

After listening to President Obama’s “jobs speech” to Congress, Americans should have little doubt that the President believes the government has a central role in job creation and a virtually unfettered control over the economy.

President Obama led off by stating that government needs to ask whether “[it] can restore some of the fairness and security that has defined this nation since our beginning.” Remember, this is the same nation that Ben Franklin admonished should not give up “essential liberty to purchase … temporary safety” lest it “deserve neither liberty nor safety.” This is a nation where meaningful opportunities for all are prized above equal outcomes. The President’s sentiment is troubling, not because “fairness” and “security” have suddenly become vices, but because government imposition of those virtues is radically different than the average American’s concept of them.

The President even acknowledged that “the drive and initiative of our workers and entrepreneurs … has made this economy the engine and the envy of the world.” But he also qualified those remarks by suggesting that Americans share “a belief that we’re all connected, and that there are some things we can only do together, as a nation.”

The President is correct that there are some things Americans can only do together as a nation, and even more convenient for the President, Americans have agreed on those tasks. The Constitution provides a number of express powers where states and individuals, through the federal government, work together for the common welfare. Conversely, the same Constitution prevents the federal government from interfering in the lives of individuals, their communities, and their states where powers are not granted to the federal government. These constitutional restraints do not mean the American tradition of helping each other is dead but rather that the tradition has meaning because it comes from the hearts of the American people rather than by government compulsion.

Regrettably, President Obama has a different perspective on the limits of government. During the speech, the President asked, “[w]hat kind of country would this be if [Congress] had voted down Social Security or Medicare just because it violated some rigid idea about what government could or could not do?” The “rigid ideas” that limit government action are found in the Constitution. The President would do well to remember that those ideas were enshrined by those who knew the threat of powerful oppressive government to free society, the countless Americans who shed their blood to protect them, and a people who have agreed to amend them only 27 times over more than 200 years.

When the President of the United States takes such a jaundiced view toward fundamental restraints on the federal government, Americans should be outraged. The Constitution’s limits on government are there SPECIFICALLY to prevent the federal government from becoming too powerful. Even when they are not convenient, those limits are extremely important.

Parts of the President’s plan for stimulating the economy make sense. Stabilizing and reducing costs for Medicaid and Medicare as well as authorizing free trade agreements are music to the ears of many Americans. Unfortunately, these are conspicuously absent from the American Jobs Act which the President called on Congress to pass.

Many components such as new unemployment benefits and “shovel ready” infrastructure projects are simply another chorus of an all-too-familiar tune. Rather than engaging in common sense tax reform, the President’s tax credits fail to reduce the overall tax burden on job creators by borrowing against Social Security and putting conditions on the types of workers those businesses must hire to obtain the credits. To be sure, America needs a real infrastructure plan for the future, and tax reform has been put off for too long. But the President’s political “Hail Mary” falls far short of meeting those requirements.

The President also failed to mention the $450 billion cost of his plan. While he assured America that “everything in [his] bill will be paid for,” the White House summary of the American Jobs Act states that “the President will call on the Joint Committee [on Deficit Reduction] to come up with additional deficit reduction necessary to pay for the Act and still meet its deficit target.”

Relying on the highly divided “supercommittee” to come up with another $450 billion in cuts on top of the $1.5 trillion already assigned seems highly unlikely.

Even if that substantial cost could be offset, the Congressional Budget Office projects a $1.3 trillion deficit for 2011 alone. Should Congress could find a way to “pay for” the President’s proposals, they would almost certainly be doing so with money the American people do not have.

With unemployment at more than nine percent, Americans definitely need jobs. They also need representatives and a President who understand their limits.

[Since Smith wrote this article, President Obama has proposed paying for his jobs bill by “closing the corporate tax loophole and asking the wealthiest Americans to pay their fair share.” In other words, he wants the rich to pay for government screw ups. It’s federal government monetary policies that aid the development of financial bubbles and busts. It is the federal government that has increases the national debt to unsustainable levels. If enough Americans buy Obama’s tax increasing strategy, the middle class will end up paying for it through increased prices on goods and services, which is also known as trickle-down inflation.]

Cameron Smith is General Counsel for the Alabama Policy Institute, a non-partisan, non-profit research and education organization dedicated to the preservation of free markets, limited government and strong families, which are indispensable to a prosperous society.

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Low Crawl at an NCR Artifact

Posted on September 12, 2011 by | Leave a comment

By John Mitchel

RE: Redistricting could pit Turner against Austria in the 2012 primary, DDN, August 23, 2011. It’s appropriate that the status quo apologists made their appeal to keep both Austria and Turner at the “overtaken-by-events” NCR facility on S. Patterson, now the property of the University of Dayton . There’s not a more fitting monument to the failure of local, state and federal governments in southwest Ohio than NCR’s exodus to Atlanta.

Career politicians like Turner, Austria, DeWine, Voinovich, Hobson, Taft and Boehner have failed the Miami Valley for decades and yet the Chamber of Commerce, Dayton Development Coalition and other “public-private partnerships” continue to mount the horse that dragged us to the abyss. This has nothing to do with protecting Wright Patterson or Miami Valley jobs. No, it’s got everything to do with protecting career politicians and their special interest friends that provide the campaign cash to keep them in office.

Wright-Patt is the only success story our politicians can hang their hat on, and the simple truth is, they had little or nothing to do with it as this national treasure would be fine with or without the politicians’ meddling. Actually, Wright-Patt has had three touching congressional districts since the 2000 redistricting, including Austria (7), Turner (3) and Boehner (8). You would think House Speaker Boehner, one of the three most powerful politicians in Washington, and one other Congressman would be sufficient to represent Wright-Patt, but that’s not enough political cover for those getting six-figure salaries at the Chamber, the Coalition and elsewhere. In their search for a mission to justify their existence, these 21st Century feather merchants have revealed their true colors, and no where in that mosaic is there genuine concern for the citizens, only self-interest stacked atop arrogance.

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Governor John Kaisch’s Labor Day Proclamation

Posted on September 5, 2011 by | Leave a comment

The first Monday of September has been dedicated to honoring the social and economic achievements of the American worker and stands as a tribute to the contributions workers have made to the strength, prosperity and well-being of our state and country.

Labor Day is a time for all Ohioans to reflect upon the skill, leadership, initiative and ingenuity that our state’s workers display every day to support their families, improve their communities and help cultivate an economic climate in which all Ohioans can thrive and prosper.

Ohioans should pause and remember all of the dedicated workers who have been killed or injured in the line of duty and constantly strive to foster safe, healthy and productive work environments for employees and employers.

Ohio workers, in partnership with their employers, strive to remain competitive in an increasingly global economy that requires a well-educated and highly trained workforce that understands the value of life-long learning as a way to constantly upgrade skills.

Ohio owes a debt of gratitude to the previous generations of Ohioans who worked with an unwavering commitment to create prosperity and stability, and whose hard work sustained our state in times of uncertainty and hardship. We, in turn, owe it to future generations of Ohio workers to create a state in which their hard work can be rewarded and in which they and their families can succeed.

Now, therefore, I, John R. Kasich, Governor of the State of Ohio, do hereby recognize September 5, 2011 as Labor Day throughout Ohio and encourage all Ohioans to enjoy their holiday while reflecting upon the achievements that Ohio’s working men and women contribute to our states workforce and economy throughout the year.

The above is not the official proclamation. It was edited and reformatted version to make the proclamation easier to read. To see the official version, go to the Governor of Ohio website (http://governor.ohio.gov).

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Buckeye Institute Releases Educational Ad On Government Compensation and Taxes

Posted on August 29, 2011 by | Leave a comment

(Columbus, OH) The Buckeye Institute for Public Policy Solutions released an educational ad highlighting the funding crisis in local governments due to gold-plated government compensation packages that will require higher taxes on declining property values unless compensations are realigned to reflect current revenues. The educational ad will run on Wednesday, August 24, and Thursday, August 25, in the twenty-two Suburban News Publications in Central Ohio reaching 250,000 homes.

With privates sector Ohioans losing roughly 500,000 net jobs over the last eleven years, the decline in home values further undermines the ability of Ohioans to afford the gold-plated compensation packages of government. By highlighting the deficits of nineteen Central Ohio school districts as projected by those school districts in October 2010 (prior to the 2012-2013 state budget and the cuts therein) along with the amount of revenue that will be swallowed by compensation packages, the educational ad highlights the lack of accountability on gold-plated government compensation packages.

For example, based on the October 2010 projections by the school districts, from 2008-2015, the nineteen school districts finished the school year with deficits in 113 out of 152 years, or 74 percent of the time. To eliminate these yearly deficits, the school districts raided their rainy days funds. In eighteen out of nineteen school districts, unless compensation packages are realigned or taxes raised, the rainy day funds will be totally drained by 2015, leaving Central Ohio school districts with an aggregated deficit of nearly $1 billion.

More critical, because compensation packages absorb nearly all revenues (97%), taxpayers are left with two choices: raise taxes on themselves as their homes lose value or realign compensation packages to reflect the revenue already provided to government. As small and medium-sized businesses struggle to grow, additional taxes on them and their employees, as echoed by Gary James, CEO of Reynoldsburg-based Dynalab and twice named Entrepreneur of the Year, won’t make it easier to expand in this tough economy.

“The confluence of tax hike requests by local governments, largely due to compensation package costs, and declining home values will require homeowners to make a stark choice,” said Matt Mayer, Buckeye Institute President, “This educational ad and the one-stop-shop webpage will help them make an informed choice. Ohioans cannot sustain higher taxes and the status quo of less accountability.” The Buckeye Institute plans to run similar educational ads in the other large suburban cities across Ohio over the next month. The educational ad and accompanying chart with fiscal data is attached.

The one-stop-shop webpage can be viewed at www.buckeyeinstitute.org/getthefacts.

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Gov. Kaisch Delivers Weekly Republican Address: Ohio’s Finanical Reforms to Federal Government

Posted on August 24, 2011 by | Leave a comment

Delivering last week’s Republican address, Govenor Kaisch commends Ohio’s success in reigning in it large budget deficit without raising taxes. Kaisch encourged the Obama administration and Congress to pass the upcoming federal balanced budget amendment.

The passage of this amendment will ensure our national government practices better fiscal discipline. It will also help stabilize the economy and stimulate business growth.

[youtube http://www.youtube.com/watch?v=wQ2drkSXSkA&hl=en&fs=1&]

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What S&P Credit Rating Means for Ohio

Posted on August 24, 2011 by | Leave a comment

While the S&P downgraded the federal government’s rating from AAA to AA+ negative, it upgraded Ohio’s AA+ negative rating to AA+ stable. Several reasons noted in the S&P report were Ohio’s recent budget reforms that closed the $8 billion shortfall without raising new taxes, continued economic recovery, and significant reduction in Ohio’s unemployment, according to the Wall Street Journal.

Gov. Kaisch’s unpopular fiscal manuvering is paying off.

Ohio is one of thirteen states given a AA+ credit rating by S&P. What do these ratings mean for Ohio? On the negative side of the ledger, Ohio is not among the twelve states with the strongest economies (acknowledged by S&P’s AAA credit rating) and therefore is not among the best places to invest. On the positive side, Ohio is among thirteen of the second best states in which to invest and develop business. Because credit worthiness equates to level of risk, Ohio is among states with the second lowest level of risk to investors and lenders. As WSJ noted, the improved credit rating also will reduce the cost of borrowing throughout the state. It may even attract attention of entrepreneurs to Ohio’s improving business environment.

The other twenty-five states in the Tax Foundation analysis pose greater credit risks and indicate less potential for economic growth, less ability to pay current and future debt, and consequently less attractive places to invest, for example less attractive to new business start-ups.

The key to economic stability and growth is sound fiscal management. When tempered by sound moral principles, prosperous political economy will result in the financial well-being of all citizens. The moral aspect of the political economy of states is usually overlooked in economic analysis. It certainly is not a factor in a state’s credit rating, but maybe it should.

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