WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
December 30th, 2013 By German Lopez | News | Posted In: News, Economy, 2014 election, Governor

Governor’s “Ohio Miracle” Falling Far Short of Promises

Ohio was one of two states to see economy worsen in three-month index

cover-kasich-2Gov. John Kasich as a magician. - Art: Julie Hill

Despite Gov. John Kasich’s claims to the contrary, the only miracle in Ohio’s economy might be how bad the state is doing compared to the rest of the nation.

The proof: Ohio’s economy was among just two states in the nation that actually worsened during September through November compared to August through October, according to the research department at the Federal Reserve Bank of Philadelphia.

Beyond Ohio’s borders, Alaska also worsened, two states remained stable and the rest of the nation moved in a generally positive direction.

In other words, while 46 states’ economies moved in a generally positive direction, Ohio actually got worse.

The measures come from the State Coincident Index issued by the Federal Reserve Bank of Philadelphia every month. The index combines several economic indicators to gauge the condition of each state’s economy. The research department then gauges whether the index improved or worsened after the latest month’s data is taken into account.

With the gubernatorial election now less than one year away, the sorry state of Ohio’s economy could prove a bad sign for Gov.

Kasich’s re-election.

Kasich, a Republican, came into office as Ohio’s economy began dashing out of the Great Recession stronger than most of the nation — a trend Kasich took to calling the “Ohio miracle.”

Ed FitzGerald, Kasich’s likely Democratic challenger, has criticized the claim in the past few months as Ohio’s economy showed more signs of worsening despite Kasich’s promises that his policies would keep the state in the right direction.

One of those policies was privatizing Ohio’s development agency and effectively turning it into JobsOhio. In less than three years, the agency has been riddled in multiple scandals following accusations from Democrats that the JobsOhio board hosts various conflicts of interests and lacks transparency when recommending who should get state tax credits.

Kasich also pushed and approved an across-the-board income tax cut earlier in 2013 through the two-year state budget. But because the income tax cut came with a sales tax hike, left-leaning think tank Policy Matters Ohio found Kasich’s tax cut heavily favors the wealthy, which calls into question whether the tax cut will actually help Ohio’s middle class or economy.

For FitzGerald and other Democrats, the challenge is advocating a progressive agenda that stands in contrast to Kasich’s policies. Although they have plenty of criticisms, it remains unclear what Democrats could do if — as looks almost certain — Republicans continue to hold Ohio’s legislative chambers.

Then there’s the question of whether state policies matter much, if at all. Economists generally agree that state officials tend to dramatize the economic impact of their policies when much bigger factors are at play, particularly as globalization reshapes the national and global economies.

For now, one thing is clear: Kasich’s policies haven’t been enough to turn around Ohio’s sinking economy throughout the past three months.

 
 
12.30.2013 at 02:51 Reply

are we making a judgement about the entire term based on one index over 3 months?  just wanted to know.  also tax cuts can only help the wealthy more because they are the ones paying the majority of taxes.  this has been a lame argument for decades.  also any change, good or bad, always has an initial negative impact, ask any business change agent. better luck on causation in your next article praising the liberal viewpoint on just about anything.

next....

 

12.30.2013 at 02:57

From the article: "Then there’s the question of whether state policies matter much, if at all. Economists generally agree that state officials tend to dramatize the economic impact of their policies when much bigger factors are at play, particularly as globalization reshapes the national and global economies."

 

12.31.2013 at 09:50

Actually, this article's claim is that there was a single month that changes the economic trajectory of the state. It compares two time spans: August to October and September to November, hardly long enough to even see a change, let alone one that has any significance whatsoever. Seems that this is another fishing expedition of a liberal paper against a conservative politician. In other words, space filler. 

 

01.02.2014 at 01:35 Reply

Tax cuts have failed to produce results. Ohio has cut income taxes almost every year since 2005 and since that time we are one of the worst states for job creation. 

Conservatives claim that 'state income tax cuts will increase jobs'. Yet the bulk of the research does not support the claim that state income tax cuts help. Some research even shows that they hurt (because it means less money for governmental services like schools, roads, or police). States should stop trying to poach jobs from each other and focus on how to grow the middle class. 

 

 
 
Close
Close
Close