Category Archives: economy

Small Business Outlook on the Economy

The latest Discover Financial Services “Small Business Watch” survey was released on Monday, August 31. The best that can be said seems to be that small business owners’ lack of confidence in the economy may have bottomed. Clearly, the readings from small businesses are still anything but rosy.

A few key findings on the August survey:

• 43% of small business owners believe the economy is getting worse – the lowest level in the survey’s three-year history – while 38% see it getting better. Meanwhile, 15% see it staying the same.

• 48% of small business owners ranked the economy as poor, 41% fair, and only 9% as good or excellent.

• As for their own firms, 30% saw economic conditions improving, 43% getting worse, and 23% unchanged.

• In addition, 27% of small business owners said they were going to boost spending on business development, 43% said reduce, and 25% no changes.

The only real positive that can be pulled from this survey is that the negatives were a bit less negative than in recent months. According to this poll, most small business owners clearly are still quite sour on the economy.

Considering the importance of small business to economic growth, innovation and job creation, perhaps our elected officials at the federal, state and local levels should take note. Rather than focusing on big spending programs, a pro-growth course includes tax and regulatory relief to help reinvigorate confidence and investment among our nation’s entrepreneurs.

That, however, would require a major shift in thinking among many in power right now. For example, the current plan is to sock America’s entrepreneurs and investors with higher personal income, capital gains, dividend and death taxes over the coming 16 months, while also increasing energy and health care costs in the future. That is anything but pro-small business, and therefore is bad for the economy.

Source: Raymond J, Keating, Small Business & Entreprenurial Council News, September 3, 2009

Workers of the World (and Ohio), Compete!

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

Grassroots Economic Development

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.

Q&A: Abortion & the health care plan

by Michael Foust

On the same day that a leading pro-family group released a TV ad claiming the health care plan would lead to government-funded abortion, President Obama spoke to a group of mostly liberal religious groups and called such charges “fabrications.”

So, who’s right?

Following is a list of frequently asked questions, along with answers, about the controversy over abortion coverage in the health care plan:

What is President Obama’s position on the issue?

As president, Obama has not come down firmly on whether he believes the health care plan should cover elective abortions. He came closest to doing so during a July interview with CBS’ Katie Couric, saying, “I’m pro-choice, but I think we also have the tradition in this town, historically, of not financing abortions as part of government-funded health care.” He did not, though, say whether he agreed with that tradition. During the same interview he said he was “not trying to micro-manage what benefits are covered.” Pro-lifers are concerned not only because Obama, as a believer in abortion rights, is pushing health care reform, but also because as a candidate, he explicitly backed government-funded elective abortions. He told Planned Parenthood during a 2007 speech that “reproductive care is essential care. It is basic care. And so it is at the center, the heart of the [health care] plan that I propose.” He also said during the same speech, “We also will subsidize those who prefer to stay in the private insurance market, except the insurers are going to have to abide by the same rules in terms of providing comprehensive care, including reproductive care.”

What are the concerns of pro-lifers?

Pro-lifers have three primary concerns: 1) that a public option (that is, a taxpayer-funded, government-run insurance plan) will cover elective abortions; 2) that federal subsidies to lower-income people will be allowed to be used to purchase insurance plans that cover abortions; and 3) that a health care plan will force private insurers to cover a list of “essential benefits” that includes abortions. Under all three scenarios, pro-lifers say, the number of abortions will increase.

So, under the public option in the current health care reform bill, are elective abortions covered?

There are multiple bills in the House and Senate, but under the leading House bill, H.R. 3200, elective abortions would be covered under a public plan, as both sides acknowledge. But the two sides disagree strongly over whether the public plan would use federal money to fund abortions. Before the August recess began, a House committee passed an amendment by Rep. Lois Capps, D.-Calif., who is pro-choice, that would pay for elective abortions only through the premium monies collected from enrollees. Capps and her supporters said the amendment would prevent the government from financing abortions. (The committee defeated amendments that would have explicitly prohibited elective abortion coverage.) Critics of the Capps amendment — including several conservative Democrats — called the amendment a bookkeeping sham and said common sense dictates that under a public plan, all the money is federal money. “You have a federal agency collecting these monies, getting bills from the abortionists and sending checks to the abortionists drawn on a federal account,” National Right to Life’s Douglas Johnson told Baptist Press. “… The federal government is running the whole scheme from start to finish.” Speaking to the Weekly Standard, Rep. Chris Smith (R-N.J.) called the amendment “one of the most deceptive amendments I have ever seen.” Rep. Bart Stupak (D.-Mich.) called it a “phony compromise.” Pro-life citizens who want to enroll in a public plan would have no choice but to pay the same premiums that would finance the abortions. Regarding the debate the non-partisan FactCheck.org, run by the Annenberg Public Policy Center, concluded, “As for the House bill as it stands now, it’s a matter of fact that it would allow both a ‘public plan’ and newly subsidized private plans to cover all abortions.”

If, under a health care plan, lower-income families receive federal subsidies to purchase their own health care plan, then why shouldn’t they be allowed to buy a plan (public or private) covering elective abortions?

Pro-lifers argue that under the current federal employees health program — the same health insurance plans that members of Congress have – abortion coverage is prohibited. The same principle should apply to federal subsidies, they say, adding that if federal subsidies are used for health insurance plans that cover abortion, then the number of abortions would only increase and taxpayers would be footing the bill. The Capps amendment has a say in the matter by allowing federal subsidies to be used for plans that cover abortions but preventing the subsidies themselves to be used for the abortions. In other words, private insurance companies would have to segregate their internal accounts. Pro-lifers call it another bookkeeping scam. Melody Barnes, Obama’s domestic policy adviser, seemed to defend the pro-choice argument Aug. 19 during a conference call with liberal religious groups, when she answered a question about abortion and said the health care proposals are “not intended to reduce insurance coverage that Americans already have.” In other words, she seemed to be saying, if a citizen currently is paying for a private plan that covers abortion, then they should be able to do so also in a public plan or a private plan under health care reform. (Barnes formerly served on the board of two abortion rights groups, Emily’s List and Planned Parenthood.)

Is the word “abortion” even in the bills?

It’s not in most of them, but, as pro-family leader Tony Perkins said, neither are the words “tonsillectomy” or “bypass,” and such procedures would of course be covered. Ever since the U.S. Supreme Court issued its 1973 decision legalizing abortion nationwide, there has been an understanding in Congress — thanks mostly to federal court rulings — that unless a federally funded health care program explicitly excludes abortion coverage, then the controversial procedure must be covered.

How has the White House reacted to such charges?

With the exception of a couple of recent comments by Obama, the White House has said very little. The White House’s own health care fact-checking webpage, called “Reality Check,” includes videos on 13 topics, but none deal with abortion. Obama told a group of mostly liberal religious groups Aug. 19, “We’ve heard that this is all going to mean government funding of abortion. Not true. These are all fabrications.” The next day, he told a health care forum, “There are no plans under health reform to revoke the existing prohibition on using federal taxpayer dollars for abortions. Nobody is talking about changing that existing provision, the Hyde Amendment.” But the non-partisan FactCheck.org posted an article Aug. 21 saying that Obama “goes too far when he calls the statements that government would be funding abortions ‘fabrications.'”

What’s the Hyde Amendment?

Passed first in 1976 and tweaked during the Clinton administration, the Hyde Amendment is an addition to the annual Health and Human Services Department appropriations bill that prevents Medicaid (the insurance program for low-income people) from covering abortions except in the cases of rape, incest and to save the life of the mother. The amendment, though, has to be re-approved annually — meaning that a pro-choice Congress could reverse policy — and it also would not apply to the health care plans being considered. Funding for the health care plans would not flow through the Health and Human Services Department. The Associated Press reported Aug. 5 that “the health overhaul would create a stream of federal funding not covered by the [Hyde Amendment and other] restrictions.”

What about co-ops? Are there pro-life concerns about them?

Although none of the bills currently promotes co-ops, some legislators in Washington have floated the idea of co-ops as an acceptable alternative to a public option. In theory, a health care co-op would be owned and managed by its enrollees, and possibly even pay its own doctors and have its own health care facilities — all without federal control. If this is the case, National Right to Life’s Johnson said, “then it would be the same principle as other private insurance, which is they can do what they want, but if they want to qualify for a federal subsidy, then that plan shouldn’t cover abortions.” But if a co-op receives federal dollars and has federal control, then pro-lifers would have the same concerns that they have about the public option.

Where is public opinion on the issue?

A 2008 Zogby poll found that 69 percent of Americans support the Hyde Amendment and oppose “taxpayer funding of abortions.” On another issue, an Aug. 18 MSNBC poll showed that 50 percent believe the health care plan “likely will use taxpayer dollars to pay for women to have abortions.” Thirty-seven percent said it is unlikely.

Source: Baptist Press, August 21, 2009

Kroger associates in Ohio ratify labor contract

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

Crime Commission Wants Less Gambling

By Roger Greer

Illinois lawmakers have legalized 66,000 video-gambling machines, but none of them will be placed in DuPage County.

When the Legislature started looking at the expansion, the Chicago Crime Commission warned the DuPage County Board that the long-term, negative societal costs of video gambling would far outweigh any financial benefits.

Anita Bedell, executive director of Illinois Church Action on Alcohol and Addiction Problems, said the board took the commission at its word.

“Video gambling sends a wrong message,” she said. “We’re encouraged that DuPage County was the first, and we hope other counties and communities will follow suit.”

Other counties have taken notice. A similar proposal is expected next month by a coalition of Cook County board members. The Will County Board will soon consider similar action. And Kane County officials just decided to form a task force to investigate the impacts of video-gambling machines.

“People are considering the effects of gambling, the impact on their communities,” Bedell said. “And they can say ‘No’.”

Read >United Methodists Battle Gambling in Ohio to learn about some of the problems caused by gambling Ohio.

Ohio officials reject vote on slots for 2010

Secretary of State Jennifer Brunner’s office rejected a petition with more than 3,000 signatures that attempted to place Gov. Ted Strickland’s plan for video slot machines on the 2010 ballot. According to the finalized state budget agreement the governor is expected to issue an executive order to authorize the video slot machines at Ohio racetracks. The plan includes a total of 2,500 video slot machines at 7 race tracks. However, the plan which was added to the state budget is exempted from the referendum process. The final state budget was signed July 17, 2009.

On July 20, the group LetOhioVote.org filed a lawsuit in the Ohio Supreme Court in an effort to block the slots plan from going into effect. “There is an argument to be made, and the Supreme Court will evaluate whether or not this is subject to a referendum,” said Carlo LoParo, spokesperson for the group.

Ballot initiatives for gambling were turned down in 1990, 1996, 2006 and in 2008.

In all of our politicians efforts to use vice to pay for government, this blogger sees a potential pro-citizen plan that would save taxpayers billions of dollars. Let Gov. Strickland, the high court, and the legislators pay ALL state government expenditures gambling dollars. Seeing that Ohio officials defy the will of Ohio citizens concerning gambling, then all citizen taxpayers and voters should not have to pay any taxes. See that Ohio public officials produce services for themselves and their special interests and not the voting public, let them do it all without the tax dollars of Ohio citizens.

Of course those citizens who like the ideas of their corrupt politicians could always donate their money.

Source: Ballotpedia

Rehabilitation of our city streets

The city placed the following announcement of the front page of its website:

The Engineering Department has announced plans for the City’s annual street rehabilitation program. The Xenia City Council awarded a contract to Strawser Construction Inc. of Columbus, Ohio to rehabilitate four (4) deteriorated streets. The four streets include June Drive (Tackett Dr. to W. Second St.), Rockwell Drive (Cato Dr. to Kylemore Dr.), Kylemore Drive (June Dr. to Massie Dr.) and Wimbledon Drive (Bellbrook Ave. to Commonwealth Dr.). Work is scheduled to begin during the week of August 10, 2009 and expected to last through September 2009.

It is wonderful that some of our neighborhood streets are going to receive some tender loving care.

I’m wondering, however, if it is the streets that need rehabilitation. Is the troubled economy giving our streets rather than city officials or laid off taxpayers the need for some rehabilitation? I’m not sure it is our streets that are capable of straying from the moral path of lawful behavior. Can pavement commit crimes? Do thoroughfares become delinquent? Do street attempt to get our money based of bogus arguments?

God help the employees of the Strawer Construction company if our streets decide to assault them for violating their privacy or profiting from their pain. After all, up and down our street there are those who are not making enough even to pay for Simon Kenton’s underground troubles.

Maybe Simon Kenton troubles it’s really just passing gas. It could be just a lot of hot air trapped below. I think I heard some complaining of a foul odor. At least our streets are not having that kind of problem that needs rehabilitated.

Can paying taxes be rehabilitated?

Total control of our lives

By Rense Johnson, Chairman of Citizens for Term Limits

The Obama Health plan isn’t just about health. It is a cover for grabbing total control of our lives.

I have heard that health care is estimated to comprise about a sixth of our economy.

HR 3200, the Obama plan, was reviewed by Liberty Council, a nationwide public interest religious civil liberties law firm.

Reading the bill (see our Links pagehttp://www.liberty.edu/media/9980/attachments/healthcare_overview_obama_072909.pdf) reveals a power grab by Obama and the government elitists attempting to gain TOTAL CONTROL over our lives.

Meaning personal, family, financial, banking, spying, abortion, speeding up end-of-life.

Rather than attempting to list the ways in which Obama would assert such total control (they are legion), I will state it in the negative: I defy anyone to find in HR 3200 one iota of freedom, one iota of daylight, for American people. There are none.

We should be grateful for the 52 so-called “blue dog” Democrats, the conservatives in the Democratic House of Representatives. It is a reflection of Democrat rot in the House that there aren’t twice that number willing to stand up for conservative values. Makes Republicans look better than they actually are, by a long shot.

The only answer? A term-limited congress, House and Senate, that will serve the people as the Founders intended and not their own selfish interests – including Obamacare and all its elitist supporters.

Ohioans challenging Gov. Strickland’s Slot Machine Gambling to Ohio Supreme Court

On Friday July 23, LetOhioVote.Org filed a Writ of Mandamus with the Ohio Supreme Court directly challenging Governor Ted Strickland’s plan to place up to 17,500 video slot machines at Ohio horse race tracks without a vote of the people.

In the writ, LetOhioVote.Org committee members Tom Brinkman, Gene Pierce and David Hansen asked the Ohio Supreme Court to uphold the right of referendum on this issue. Further, the committee seeks the Court’s affirmation of the peoples’ constitutional right to vote on the video slot machine scheme. If the committee’s effort succeeds, the issue will be placed before voters in November 2010, and the slot machine rollout will be halted pending that vote.

“In 2006, nearly 57 percent of Ohioans opposed placing video slot machines at horse race tracks,” Pierce said. “If Governor Strickland and legislative leaders believe their plan is better than the one the voters already rejected, they ought to make their case directly to the people. Simply ignoring a public vote should not be an option.”

“The governor and legislative leaders should have the courage to place this issue before the voters,” former state representative Brinkman said. “They didn’t have the nerve to cut government, but they freely violate the expressed will of the people? Well, we say ‘not so fast.'” Brinkman is the co-founder of COAST, a Cincinnati-based taxpayer advocacy group.

“Placing video slot machines at struggling race tracks is nothing more than giving wealthy track owners a huge government bailout,” Hansen added. “It’s the same old story; they can’t make their business profitable so they turn to government. Any way you look at it, it’s bad economics and bad government.”

In 2007, Governor Strickland said, “The people of Ohio have spoken with a clear voice on this issue time and time again. They do not want an expansion of gambling in their state.” “The people deserve another opportunity to speak with a clear voice on this issue,” Pierce concluded.

Joining the fight against Strickland’s violation of Ohioans constitutional rights was Buckeye Institute’s 1851 Center for Constitutional Law. The 1851 Center filed an amicus brief on behalf of Ohio Citizen Action, Citizens in Charge and the Ohio Freedom Alliance. The brief urges the court to find language in the state budget excluding the authorization of video slot machines from referendum unconstitutional.

“The referendum process outlined in the Ohio Constitution is sacrosanct and must be tread upon lightly,” said Maurice Thompson, director of the 1851 Center for Constitutional Law. “Ironically, in seeking to arbitrarily and unconstitutionally deprive the people of Ohio of their right to Referendum, the General Assembly accentuates the very reason why Initiative and Referendum are so vital to Ohio’s governance.”

The brief points out that the right to referendum was added by amendment to the Ohio Constitution in 1912 to “serve as a check on the General Assembly by permitting laws, or parts of laws passed is that body to be submitted to voters for their approval or rejection.” In addition the brief cites that the Ohio Supreme Court has, on multiple occasions, upheld the right to a referendum as a staple of democracy in Ohio and should do so again on this issue.

Commentary: In 2006, slot machines gambling (Keno) was voted down by Ohio voters. It was called the Learn and Earn Initiative (Issue 3). Ohioans did learn how much rich track and bar owners would gain and how little school children would gain if passed. Moreover, Ohioans learned that shyster politicians, race track and bars owners were attempting make profits their Constitutionally guaranteed right. Those were reasons Ohio voters said NO to the Keno gambling initiative, a second step to justifying casino gambling. (The first step was allowing the lottery.)

The real issue then is not whether voters have a right of referendum, but a right to have their vote actually count. Ohio citizens made a valid constitutional decision about slot machine gambling at race tracks and other establishments. The decision was NO. No contingency exists–like the State budget deficit–that can negate the common consent of Ohio voters.

The issue created by Gov. Strickland and his legislative supporters amounts to the worse kind of political misbehavior. For they blatantly violate the rights Ohio citizens, oppose their Constitutional powers, and thumb their noses at the will of Ohioans. I do not see any other way to stop politicians of their ilk other than a swift and permanent removal from public office.

In the private sector, it is called being fired.