Category Archives: business

Good News-Ohio Unemployment Rate Drops 10.8%; Bad News-It’s still Above 10%

Posted on September 28, 2009 by | Leave a comment

According to a 20 September report in the Dayton Business Journal, the Ohio economy faces some positive development in the labor market. Ohio unemployment dropped a whopping 0.4% from 11.2% in July to 10.8% in August.

That’s the good news.

The bad news is the unemployment rate is still well over last year’s rate of a mere 6.7%.

The multiple million dollar question (that represents loss of income) is whatever happened to full employment? That is the employment of all able-bodied citizens. I would include domestic labor such as stay -at-home moms and homemakers as among the employed. Could it be that the welfare state needs unemployment for its beneficent rule?

What scares me is the possibility that the devil really is in the details. As reported by the Dayton Business Journal, “Nonfarm payroll fell about 30,100 jobs to 5.1 million employees from 5.13 million in July, while the ranks of Ohio’s unemployed – those without jobs and actively looking for work – fell to 641,000 from 666,000.” See, 666 x 1,000 probably means there are a thousand devils ruining Ohio jobs. Some people seem to think that if you add up all politicians including lobbyists the number equals about the same.

I’m not blaming the Dayton Business Journal for preaching this bad news in a positive way for one simple reason: they were simply reporting what the Jobs and Family Department of Ohio reported. For example:

“A decrease in Ohio’s labor force was a primary factor in the drop of the August unemployment rate,” department Director Douglas Lumpkin said in a release. “The unemployment rate declined as the number of service-providing and goods-producing jobs decreased and fewer Ohioans were actively seeking work.”

Did you notice the double-speak oozing out of that statement?

I always thought a reduction in the labor force resulted in an increase in the unemployment rate, but not in Ohio. If you get depressed or otherwise sick of trying to find work, it means you are non-existent. It implies that members in the non-labor force are no longer independent citizens. They are nobodies in the statistical world of imperial politics. Such no-bodies may become some-bodies if they submit the imperial paternalism of the welfare state, which by the way, is run mostly by rich politicians and quasi-state institutions called national corporations.

The poor saps who have stopped looking for work are ba-a-a-d people. I can’t understand why anyone could quit looking for work in a society run by rich people who have intentionally worked to put people out of work by their wonderfully increasing debt producing policies that is making it nearly impossible for all but those bailed out by Chinese government loans to continue employing non-labor force people–go figure.

The government should thank those non-labor force people for making the unemployment rate look better than it is. Maybe it will assist political bureaucrats to convince foreign investors to continue loaning them more money.

The unemployed and the state’s economic dependents, however, will be unable to help pay back all of that beneficial debt that will continue to tax Ohio and American citizens’ economic prosperity without their full knowledge and approval.

Source: Dayton Business Journal, September 18, 2009

Leave a comment

Posted in business, news, Ohio, politics, taxes

Tagged , ,

Workers of the World (and Ohio), Compete!

Posted on September 8, 2009 by | Leave a comment

By Marc Kilmer

This Labor Day, many people used their extra day off from work to take a trip, cook out, and do other end-of-summer activities. However, Labor Day, according to the Department of Labor, is “dedicated to the social and economic achievements of American workers.” Only by recognizing these workers as individuals and enacting policies to let them compete freely can our state and federal governments truly allow them to obtain the social and economic achievements they deserve.

It goes without saying that every worker is different — each has different skills, education, work ethic, and other attributes that plays into how that worker does his or her job. And while some workers may have some common goals, allowing workers the freedom to compete with each other serves their interests best. Only through competition can a worker achieve the level of success that his or her attributes will bring.

When it comes to businesses, there is near-universal acknowledgment that competition is good for consumers. But competition is also good for businesses. When businesses must compete with each other for customers, they become more efficient, produce better products, and innovate in ways that improves themselves. The same principles of competition also apply to workers.

Unions are strong supporters of anti-trust laws aimed at preserving business competition. But when it comes to workers, unions aim at stifling such competition. As a result, many of the laws supported by labor unions — the very organizations that have appointed themselves to speak for American labor — hurt individual workers. Ohio’s prevailing wage mandate, the state’s coercive unionization law, federal barriers to imports, and other policies are designed to stifle competition and which keep workers from achieving higher wages and better positions in society.

At the federal level, union leaders long been a supporter of trade barriers, for instance. While some American workers may benefit by being shielded from competition from foreign workers, many more workers are hurt. Those who are employed by exporters or who rely on imported products or services are penalized by these union-supported policies. And, of course, every American who pays more for imported products has less money to spend because of high tariffs.

In Ohio, the law that allows unions to force workers to join them as a condition of employment has certainly kept businesses from locating in the state. It’s not a coincidence that workers in states that have enacted “right to work” laws have done far better economically than Ohio’s workers.

Similarly, the state’s prevailing wage law, which rigs the bidding process for government building projects, only benefits a small percentage of workers. Those who are employed by unionized firms that are long-established in the state win. Every other worker who works for a firm which is arbitrarily shut out of bidding on these projects loses.

The type of thinking which seems to be prevalent in unions is to try and protect what they have right now. That may work as a short-term strategy, but it’s an ineffective policy in the long-run. The world changes and only through competition can workers adapt to that change. While union leaders may not realize this, workers do. Private sector unionization has been falling for decades. Today, fewer than 8% of private sector workers belong to unions.

Instead of protecting workers from competition, the government should encourage competition. By erecting artificial barriers in the attempt to shield a select few workers from competition, both the state and federal governments have prevented many workers from being able to obtain the employment or wages for which they are capable. The best way to honor the workers of our country is to free the labor market from these government restrictions.

Source: Buckeye Institute’s, Weekly News Digest, September 8, 2009

Leave a comment

Posted in business, economy, news, Ohio, politics

Tagged , ,

Grassroots Economic Development

Posted on September 2, 2009 by | 1 comment

By Marc Kilmer

It’s probably not news to you that Ohio is not the easiest state in which to operate a business. This isn’t just a hunch business owners have, though. There is empirical evidence to support it. The Tax Foundation, a nonpartisan research organization, rates Ohio’s business tax climate worse than forty-six other states. In 2008, Ohio’s economic growth ranked behind forty-four other states. Unfortunately, there is little appetite in Columbus to address the fundamental problems facing Ohio businesses.

Ohio policymakers are enamored with top-down initiatives that seek to create economic growth. Tax credits and subsidies for certain kinds of businesses currently in favor with the political class seem to be the extent of policymakers’ ideas. As we saw with the demise of Skybus and DHL and ethanol plants throughout the state, though, this type of politically-driven economic development often ends up being a costly burden to taxpayers with few or no jobs created.

While it is difficult for politicians to contemplate, economic growth is not created through government agencies. Instead, it comes from the efforts of business owners, their employees, and their customers. It can’t be directed from above but it certainly can be stifled. When a state has a high tax burden or imposes onerous regulations, no bureaucrat from the Department of Development can fix things.

Instead of looking to direct economic development, Ohio policymakers need to create a climate where business owners can thrive. A reduced tax burden, a simplified tax code, fewer and more reasonable regulations — all these things will do much more for the state’s economy than another tax credit or low-interest loan program.

Unfortunately, creating an economic climate where economic growth is stimulated doesn’t provide as good a photo op as handing a Department of Development check to a business owner. Hopefully Ohio politicians will realize their top-down growth strategy hasn’t produced much growth and will instead decide that creating jobs is more important than taking credit for a special interest tax break.

Source: Buckeye Institute for Public Policy Solutions, August 24, 2009.

1 Comment

Posted in business, economy, Ohio, taxes

Tagged ,

Kroger associates in Ohio ratify labor contract

Posted on August 31, 2009 by | Leave a comment

Dayton area employees of the The Kroger Co. have ratified a new labor agreement.

The associates are members of United Food & Commercial Workers Union Local 75.

The agreement covers more than 4,000 associates who work in 30 stores in Dayton and surrounding areas.

“This agreement provides good, stable jobs for our associates, increases take-home pay, and provides high-quality, affordable health care,” said Geoff Covert, president of Kroger’s Cincinnati/Dayton division.

Source: Forbes/AP August 13, 2009

Leave a comment

Posted in business, economy, news, Ohio, retail

Tagged , , ,

Congressman Steve Austria on Cap and Trade

Posted on July 15, 2009 by | 1 comment

On June 26, the House of Representatives approved an unprecedented climate change bill, also referred to as “cap and trade”, by a vote of 219 to 212. While we all want clean air and policies that promote cleaner, more efficient energy sources, I voted against this bill due to my concerns surrounding the negative impact this legislation could have, particularly on the state of Ohio.

If enacted into law, this bill would have major implications for almost every sector of our nation’s economy. The bill places a “cap” on U.S. carbon dioxide (CO2) emissions, and ultimately amounts to a new energy tax on everything we consume from gasoline to electricity. As may you know, Ohio derives almost 90 percent of its energy production from coal, which will be heavily taxed under this proposal. This energy tax will be passed along to families and small businesses already struggling in the midst of the harsh economic climate. Anyone who turns on the lights and uses electricity, heats their homes with natural gas or puts gasoline in their car will see an increase in the cost of energy.

In addition, this bill will make U.S. businesses less competitive globally as they are forced to compete with businesses in countries, which do not have similar restrictions, such as China and India. Ohio’s economy relies heavily on manufacturing and this new tax could result in signficant job losses as businesses, which can not afford to meet the cap, will be forced to shut down or move operations overseas.

I was also disappointed with the process by which this legislation was considered. The bill was changed significantly at 3 a.m. the day of the vote, which I believe gave members insufficient time to read its 1,400 pages. Additionally, few amendments were permitted to be considered – amendments that may have improved the bill. In my view, when Congress is considering an issue as important as fundamentally changing out nation’s energy policy, we need to do it thoughtfully and correctly. I hope that when the Senate considers the bill, it is given the time and diligent attention it deserves.

1 Comment

Posted in business, economy, Ohio, politics, taxes

Tagged

Judge Sotomayor and Business

Posted on June 10, 2009 by | Leave a comment

by Raymond J. Keating

Within the business community, President Obama’s selection of Court of Appeals Judge Sonia Sotomayor generated the inevitable question: Is she pro-business or anti-business?

The same question was asked of President George W. Bush’s court appointees – Chief Justice John Roberts and Justice Samuel Alito.

The notion behind the pro-business/anti-business question is whether or not businesses will be able to count on her to come down of their side in cases before the court. They want to take some uncertainty out of the business decision-making process when it comes to the courts.

But this is the wrong question and the wrong assumption.

The question that the business community should be asking is: Can Judge Sotomayor be relied on to responsibly apply the law and the Constitution, or will she be an activist legislating from the bench?

It is judicial activism that creates uncertainty. Businesses should be able to expect that the courts will act in a restrained manner, working to properly interpret and apply the law and Constitution as written and, to the extent possible, as intended by the authors of each. When judges stray from the proper role of the judiciary is when uncertainty mounts for the business community, and everyone else.

If the business community does not like certain laws, then the place to change those laws is in the legislature, not the judiciary.

On the matter of judicial restraint and business, Judge Sotomayor does not generate confidence.

Most worrisome, she joined an order in the 2006 property rights case of Didden v. Village of Port Chester that supported a town seizing private property for use by a developer. The decision lined up with the Supreme Court’s 5-to-4 Kelo decision that trampled all over the U.S. Constitution and the private property rights of individuals and small businesses.

This a fundamental issue, and individuals and small business owners should be concerned.

Other decisions should be noted as well.

In the 2007 case of Riverkeeper v. EPA, Sotomayor wrote an opinion barring the EPA from using cost-benefit analysis regarding an issue pertaining to a power plant and the environment. The Supreme Court on a 6-3 vote overturned her. And in the 2008 Ricci v. DeStefano case of white firefighters fighting the city of New Haven’s decision to toss out a promotion test upon which blacks and Hispanics disproportionately scored lower than whites, Sotomayor joined the opinion rejecting the firefighters case. The Supreme Court will decide that case this summer, before she would join the Court, and most analyses point to the justices being skeptical of the city’s case.

The New York Times noted: “In a securities case, Judge Sotomayor interpreted a 1998 federal law intended to limit class action lawsuits in a way that allowed such suits. In 2006, the Supreme Court reversed Judge Sotomayor’s opinion in the case, Merrill Lynch v. Dabit, by a vote of 8 to 0, and archly called the logic allowing the exemption ‘odd, to say the least.'”

The Times analysis of Sotomayor’s business opinions concluded that they are “unpredictable.”

That unpredictability comes from a lack of clarity and consistency regarding the proper roles played by judges versus legislators.

Her views indicate that she believes, as she declared in a 1996 lecture, that the courts and lawyers are “constantly overhauling the law and adapting it to the realities of ever-changing social, industrial and political conditions.”

But adapting and overhauling the law, if needed, is not the job of judges, including Supreme Court justices. Instead, it is the job of the lawmakers elected by the people.

If confirmed, Judge Sotomayor and her activist judicial philosophy will add another notch of uncertainty in an ever-growing list of uncertainties for business when it comes to government.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

Source: Small Business Entrepreneurship Council, March 29, 2009.

Leave a comment

Posted in business, politics

Tagged ,

Change you can actually believe in…

Posted on May 19, 2009 by | Leave a comment

I overheard a preacher talking about how the Roman Emperor Caligula used the slogan “change you can believe in.” He used it during his campaign to convince people of the Empire and their elite patrons in Rome to elect him as the new Caesar. The grand sales pitch was a promise to return imperial rule to the glory days of Caesar Augustus, and it worked.*

As we witnessed not many month ago, it also worked for the smooth talking junior senator from Illinois. And, many fundamentalists still believe Obama will yet make good on his sale pitch.

Did I say fundamentalists? Sorry, I meant to say secular fundamentalists.

Anyway, for those left behind in the dust of reality the “change you can believe in” is a slogan whose reality is fading away like a lot of other hot air.

In Xenia, however, genuine positive change is actually occurring. The following are some examples:

In February of this year, Roger’s Jewelry which operated for over twenty years at 76 Xenia Towne Square closed shop due to the economy. The former manager of Roger’s Jewelry has re-opened another jewelry store called Beyer Jewelers.

Downtown Cafe has re-opened at 104 North Detroit Street in the former space occupied by “What’s Brewing Café.”

Walgreen Pharmacy is open for business. It will initially employ 15-20 employees.

W & W Dry Cleaners is now operating at 75 West Main Street.

B.S. Systems Inc. is now operating at 141 Little Vine Street. This is a start up business that assembles and package machinery parts. (I’m not sure what the B.S. represents.)

Not only are new businesses opening or reopening, but other businesses are expanding their facilities to increase the enjoyment of patrons. For example,

Dairy Kings Delite located at 698 Cincinnati Avenue has expanded their outdoor patio sitting for their customers. Old-fashion ice cream cones and sundaes … yummm … my sweet tooth has fits just thinking about it.

Kennedy’s Korners, Inc. on West Second Street has added an outside patio sitting area for the customers of Cheng’s Restaurant and Carry-out.

In case you were capable of missing the sign at the corner of Main and Orange, the news is that Tim Horton Restaurant has added another feature to their restaurant and it now includes Coldstone Creamery. Coldstone Creamery services unique ice cream creations, smoothies, cakes and shakes. The unique feature of the ice cream is its final preparation on a frozen granite stone.

All of this real change may not convince the emperor to put his clothes back on, but it will sure counter his obscene economic tactics a little.

* I suspect what Caligula really meant by “change they all could believe in” was that everyone   would eventually believe in his deity. They would not only believe, but they would be unified   by worshiping him. I wonder how Obama is doing? He was being hailed as the messiah.

Sources: Grace Baptist Radio Broadcast, May 17, 2009 and
                  Development Corner Newsletter, April 2009

Leave a comment

Posted in business, economy, history, news, Xenia

Tagged

April 2009 Porker of the Month

Posted on May 6, 2009 by | Leave a comment

By Marc Kilmer, Buckeye Institute Policy Analyst

Sitting in front of the “tube” is a favorite past time for some here in Ohio; and thanks to the Ohio Controlling Board, the Department of Development, and tax dollars from you, people across the country will now have one more channel to flip through. The Guardian Enterprise Group is proud to welcome Dot Two Entertainment, Inc. to Columbus, Ohio; and we are happy to award April 2009’s Porker of the Month to Mark Barbash and the Department of Development for this new television enterprise.

So what will new “family-friendly” television programming cost the taxpayers of Ohio? How about $25,000 to start. The State of Ohio Controlling Board under the recommendation of the Department of Development and Lt. Governor Lee Fischer, approved the $25,000 “Rapid Outreach Grant” to Dot Two Entertainmentfor costs associated with purchasing new equipment. In return Dot Two has promised to create and retain jobs. A key point though: a majority of the jobs retained are non-at-risk positions within the company.

It seems that by saying “new jobs” the company got another sweetheart deal: a $1.1 million loan that will also help with the purchasing of new equipment. The over one million dollar Innovation Ohio loan bears an interest rate of six percent for the next six years. Dot Two is a privately-owned company founded not even a year ago in July 2008. It is an expansion project by Guardian Studios, which produces commercials.

What exactly can you expect to see when you are flipping through the channels? Well, according to their website, www.dot2network.com, lots of movies. The new network will premiere major motion pictures like “Gridiron Gang” and “Stranger than Fiction.” So what happened to their “family-friendly” programming? A look at their website seems to hint that it may not be their top priority. Out of the 20 shows listed on their on-air schedule, only four of them are focused on children’s programming. The other 16 are themed around cooking, traveling, and home improvements. So what does the company say to all of this? Well, a call to the stations manager left us talking to his voicemail. The company who started this expansion, Guardian Enterprise Group, is based here in Columbus but was not able to provide any answers.

The justification in providing the grant and low-interest loan was easy, according to the operating request made to the controlling board; “Ohio is in competition with multiple states for this project due to attractive tax credits and rebates. State incentives are needed to keep Dot Two in Ohio and create and retain jobs.” Dot Two has not even been around for a year, so what evidence does the state have that this company will even be around to retain jobs?

Guardian Television Network brought in more than nine million dollars in revenue in 2006 and 2007 that is before selling its main broadcast license last year. Guardian operated WSFJ, Channel 51 beginning in 1975, but the company has recently sold the station to another broadcast group in the hope of “restructuring” their company. Does a company that is in the process of “restructuring” deserve taxpayers’ funds?

This new television venture will distribute their content via satellite on digital sub-channels. A main reason Guardian decided to expand in this way was to help the company “share ad revenue.” Does this mean with the birth of digital television less than 60 days away, more and more television stations will be asking for state funding in order to take advantage of more stations and more content? Hopefully this is the end of grants and loan-breaks for television stations offering programs you could get free at your local library. Until then, sit back, grab some popcorn, and enjoy your tax dollars transmitting across the screen!

Source: Buckeye Institute for Public Policy Solutions, April 26, 2009

Leave a comment

Posted in business, economy, news, Ohio, politics

Wondering what is being built next to Applebee’s Restuarant?

Posted on April 21, 2009 by | Leave a comment

If you guessed it was another restaurant, you get a big fat A for Accurate-guessing.

According to the latest Xenia Development Corner Newsletter, Bob Evans Restaurant has started constructing their second restaurant at 1981 Harner Drive. This particular building design is being unveiled in Xenia and will be the first of many they hope to build throughout this region. The new restaurant is going to be over 5,000 square feet, roughly the same size as the existing Bob Evans Restaurant on 400 West Main Street.

According to Bob Evans Restaurant Officials, the two restaurants will initially be maintained and operated for a while. Eventually, the one on West Main Street will be closed.

Leave a comment

Posted in business, economy, news, Xenia

Another attempt by Ohio legislators to legalize casino-style gambling

Posted on April 14, 2009 by | Leave a comment

Apparently, Ohio lawmakers don’t get it. Ohioans are not in favor of padding the pockets of businesses or politicians with family-destroying addition money. For many gamblers, gambling is pathology. This pathology results in the ruin of personal finances, family welfare, and individuals lives. Yet, Ohio politicians seem blind to anything except money, which is evident in the following Dayton Daily News article.

State Reps. Todd Book, D-McDermott, and Louis Blessing, R-Cincinnati, said on Tuesday, April 7, that they’re drafting legislation based largely on an Ohio Racing Commission plan to put 14,000 slot machines at Ohio’s seven racetracks without a vote of the people.

They’re gathering cosponsors and hope to introduce the bill next week, Book and Blessing said.

Separately, Philip Craig, executive director of the Ohio Licensed Beverage Association, said he is gathering legislative support for a plan to permit slot machines at bars and restaurants, also without the vote of the people.

The effort has support from bar owners such as David Grusenmeyer in the Dayton area, who said business at his three bars is the worst he’s seen in 24 years. He owns two bars in Huber Heights and one in Fairborn.

Work on both proposals comes with the Ohio Ballot Board scheduled to meet on Monday, April 13, to consider a petition from backers of a proposal for casinos in Cleveland, Columbus, Cincinnati and Toledo. The board must give its OK before supporters can begin to gather the 402,275 signatures needed to put the proposal on the Nov. 3 ballot.

As you can see, the proposed bill is intended to benefit only a few businesses. The reason Ohio needs slot machine gambling at racetracks and in bars is to bailout them out of their financial recession.

Even worse is the repeated use of this golden cash cow to save education from its supposed financial woes justification is getting nauseating.

The state’s weak economy combined with money woes at the tracks make it the right time to discuss expanding the Ohio Lottery to include slot machines at the tracks, said Book. The proposal will call for 51 percent of gross revenue to go to education, said Blessing.

If the economy were so bad that people aren’t spending enough of their unemployment or stimulus checks, how would gambling solve this cash flow problem? Maybe, the best thing for voters handing onto to their dollars is for such business to cease to exist. Taxpayers should refuse to allow politicians to use their tax dollars to prop up poorly managed businesses or those whose products and services are no longer in great demand. The larger they are the louder the sound of good riddance should be heard. Such shouting might even stimulate voters to put those politicians who supported this bill and others like it on unemployment, in my humble opinion.

Source: Dayton Daily News, April 8, 2009

Leave a comment

Posted in business, economy, education, news, Ohio, politics

Tagged , , , , , , ,