Category Archives: news

Strickland’s Tax Proposal Not the Answer

By Marc Kilmer

Months after a contentious legislative session that struggled over balancing the state budget, Ohio is still facing a deficit. To deal with this, Governor Ted Strickland has proposed postponing scheduled tax cuts. He says the only other option is to cut spending. But what if there was a better way of dealing with these budget problems? If state policymakers would have taken steps to reform the bloated state bureaucracy, Ohioans would not be faced with this ongoing budget mess.

There were over 182,000 people employed by the Ohio state government in 2007, the last year for which numbers are available from the Census Bureau. Another 546,000 were employed by local governments. Your taxes pay the salaries of each of them. On the whole, these are hard-working people who do a good job and help provide necessary services. They are well-compensated for these services, though, and they receive good fringe benefits. No one is saying these government employees should not be paid for their services. But if their compensation was more in line with the private sector, taxpayers would see significant savings.

For instance, state employee salaries have risen faster than salaries for other Ohio workers. From 2001 to 2007, Ohioans’ per capita income rose 21%. State employee income, however, rose 27%. If state employees’ income would have risen at the rate of the rest of Ohioans, the state government would have spent $413 million less this year. And if the number of state employees remained at its 2001 level, the state would have spent $648 million less this year.

Considering that Governor Strickland is talking about $844 million in reduced education spending if the proposed income tax cuts take effect, it’s clear that the growth in state government employment is a significant contribution to the present budget problems. If state policymakers would have applied the brakes to state hiring over the past eight years, there would be no need for the governor to be discussing raising taxes.

Of course, if the number of state employees remained at its 2001 level and their compensation grew only as much as the rest of Ohioans’ compensation, this would translate to even more than $648 million in reduced spending. There would also be savings from the fringe benefits these employees receive, such as health insurance and pensions. And if these benefits were more in line with the private sector, state taxpayers would see even larger savings.

Take state employee health insurance, for instance. Government workers receive good health insurance coverage and they only pay an average of 15% of their premiums. In the private sector, employees pay closer to 30% of their premiums. If state employees were more like private sector employees, that would save taxpayers around $150 million this year.

Government employees should certainly be compensated for their services. But there is no reason why they should have better pay and benefits than they would receive in the private sector. When there is such a large gap between the state government’s spending and revenue, state policymakers need to review the generous compensation and benefits received by state employees and look for ways to rein it in. A hiring freeze, reducing the rate of salary increases, and paring back benefits to private sector levels are not radical propositions. In fact, it’s just common sense.

Source: Buckeye Institute Weekly News Digest, October 5, 2009.

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

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

Congressman Austria Co-Sponsors Czar Accountability & Reform Act

As you may know, recent attention has been drawn to the administration’s appointment of new czars. While the position of the czar has existed in past administrations, the present concern is focused on the number of czars President Obama has appointed in his short time in office, as well as the amount of power these individuals are given. It has been estimated that there are currently 34 czars in the administration. Questions of constitutionality have arisen because czars are not required to go through the regular confirmation process as, for example, is required for a cabinet secretary. With sweeping new policies that have extensive ramifications, like the stimulus bill, it is important that these individuals are kept accountable to the public.

That is why Rep. Austria became a cosponsor of the Czar Accountability and Reform Act (H.R. 3226), which would prohibit the use of tax dollars to pay the salaries and expenses of these “czars” without the advice and consent of the Senate. There must be complete disclosure, transparency and accountability for those appointed to these important positions.

— From Congressman Steve Austria’s E-Mail Updates.

Man slaps baby at Wal-Mart?

The slap happy graphic commentary was captured by Drewski at “That’s What You Think” blog.

I can vaguely remember being slapped once or twice for not obeying my parents. My candy grabbing hands and sometimes gluteus maximus was stung by my very annoyed momma or pappa bee.

I must admit that I’m glad the government inspired hate crime goons did’t exist during my child arrearing.

Of course, this is not to deny real abuse exists. But, as the good book says, “spare the rod (or hand or paddle) spoils the child.” If you hope your child will one day grow to live the way he or she should, training is of a necessity. Pain teaches about consequences for doing what should not be done and praise teaches reinforces good behavior.

It looks like the kid must have given Dad his lesson. Poor Dad.

The Obama “Birth Certificate” Scandal Continues

A Newsmax.com story by David A. Patten noted that, contrary to widespread media reports, Hawaiian health officials have not publicly released President Obama’s original, “long-form” birth certificate. He explained, “Many media reports have insisted the President’s actual birth certificate is available on the Internet for anyone to download. It is not.” What is posted, he noted, is Obama’s “certification of live birth.”

Patten said, “The document is essentially a summary of the actual long form birth certificate. The certification does not list the attending physician, the address or hospital where the delivery took place, or the parents’ occupation. Typically, this information is included on the birth certificate.”

A certified birth certificate a state seal stamp on it. The seal prominently displayed by MSNBC anchor Brian Williams was not from Obama’s birth certificate. A good reason not to show a close up of the entire thing.

Cliff Kincaid, the editor of Accuracy in Media, has released a copy of his own birth certificate, in order to demonstrate what needs to be done to resolve the growing controversy over the alleged birth certificate of President Barack Obama. “My birth certificate includes the names of my mother and father, my mother’s doctor, and the hospital in which I was born,” said Kincaid. “This certified copy of an original long form document is what anyone who wants to be president should be prepared to produce.”

By contrast, the “birth certificate” released by the Obama presidential campaign includes no name of a hospital, a location of that hospital, or a physician. “The contrast between what is on so many birth certificates for ordinary Americans, such as mine, versus what the Obama campaign has released, is striking,” said Kincaid. “This contrast is what accounts for the many questions that have arisen and which have given rise to the so-called ‘Birther’ Movement. Many ordinary Americans are wondering why the major media have not explained why the Obama ‘birth certificate’ is so lacking in basic and essential information about where he was born and which doctor by name was there when he was born. If he was born in Hawaii, as he claims, then this information should be readily available and printed on the original birth certificate.”

If Obama has a legitimate birth certificate, why has he spent nearly one million dollars to conceal it from public view? What does he have to hide? Could it be his foreign born status?

As Kincaid asked, “Whatever happened to the public’s right to know?”

Surely, Obama and the Democrat Party leaders are not so contemptuous toward the voting public–or should I say those who voted against him–that they disregard their right to know whether a man holding the highest office satisfies the legal requirements under Constitutional law? Maybe, they sincerely believe all Americans should trust federal bureaucrats. More likely, they believe their presumed authority exceeds that the people and the U.S. Constitution. Tyrants always do.

To read the entire Accuracy in Media Report published on September 2, 2009, go here.

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

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

Prostitution Ring Targets High School Girls

Nashville, Tennessee police have arrested 45-year-old Teresa West and her two adult children on charges of trafficking for sexual servitude. The police said they were prostituting a 16-year-old girl they recruited from a local high school.

The police suspect more minors may have been recruited by the Wests.

Sharlene Azam, author of Oral Sex is the New Goodnight Kiss, said underage prostitution in white, middle-class neighborhoods is more common than many want to believe.

“I am finding that middle-class girls from functional families in good neighborhoods are being drawn into prostitution by all kinds of people,” she said. “There are recruiters in schools, other teenage girls, who might be telling your daughter, ‘You’re already having sex, why don’t you get paid for it’?”

Source: CitizenLink Daily, August, 21, 2009