Occupy Wall Street may have been onto something. A new report from left-leaning Center on Budget and Policy Priorities (CBPP) found Ohio’s income gap — the income difference between the rich and poor — is wide and growing.
Since the 1970s, the poorest 20 percent saw no change in real
income, the middle 20 percent gained 21.1 percent, the top 20 percent
gained 50.6 percent and the top 5 percent gained 85.1 percent.
In terms of real dollars, low-income and middle-income Ohioans have actually seen their income drop since the 1990s. The drop caused a “lost decade” for Ohio’s lower and middle classes, according to the report. The bottom 20 percent saw a 6.9 percent drop in real income from the late 1990s to the mid-2000s, while the middle 20 percent saw a 2.9 percent drop. Real incomes for the top 20 percent and top 5 percent remained the same.
The shifts have caused a startling difference in real income, which the report calculated by looking at real dollars after federal taxes and including the value of the Earned Income Tax Credit, housing subsidies and food stamps. The poorest 20 percent make on average about $20,500, and the middle 20 percent make on average about $58,100. Meanwhile, the top 5 percent make about $221,800 — 10.8 times as much as the bottom 20 percent and 3.8 times as much as the middle 20 percent.
Real dollars are a measurement used to gauge the value of money and income after inflation. If a family sees its income in real dollars drop, it means income increases, if they exist, are not keeping up with inflation.
The widening income gap is part of a nationwide trend. In comparison to other states, Ohio mostly did better than the national average. Ohio was not included in any of the six top 10 ranks for inequality, which ranked states for rises in inequality during different time periods. During the late 2000s, New Mexico, Arizona, California, Georgia and New York had the greatest gaps between the wealthiest and poorest. In the same time period, New Mexico, California, Georgia, Mississippi and Arizona had the biggest gaps between the wealthiest and middle.
Part of the cause for the widening gap is the recent recession, but the CBPP report found that the wealthiest have seen their incomes rise again in the recession’s aftermath, while middle and lower incomes have not. The report also blamed government policies — deregulation, trade liberalization, the weakening safety net, the lack of effective laws regarding collective bargaining and the declining real value of the minimum wage — and the expansion of investment incomes, which the CBPP says “primarily accrue to those at the top of the income structure.”
The report finished with some suggestions for states: raise minimum wage and index it for inflation, improve unemployment insurance systems, make state tax systems more progressive and strengthen safety nets.
Policy Matters Ohio, which pointed to the findings in a statement, says the report warrants action. “Poor and middle-income families are seeing their income fall in real dollars and relative to higher earners,” said Amy Hanauer, executive director of Policy Matters Ohio, in the statement. “When households already subsisting on less than $23,000 a year see their incomes drop, that means hunger, instability, poor school performance and worse. Ohio needs to do more to improve the lives of families in this state.”
A new report from left-leaning Policy Matters Ohio shows the impact of state budget cuts on individual counties. Statewide, more than $1 billion in tax reimbursements and the Local Government Fund was cut between the 2010-2011 budget, which was passed by Democratic Gov. Ted Strickland, and the 2012-2013 budget, which was passed by Republican Gov. John Kasich. Additionally, Ohio’s estate tax — a tax that affected only 8 percent of Ohioans, largely those at top income levels — was eliminated, killing off a crucial source of funding. Hamilton County, its jurisdiction, schools, services and levies lost $222.1 million. Health and human services lost $23.2 million. Children’s services lost $4.6 million, and the county children’s agency services “was sent into financial crisis.” In total, more than 5,000 local government jobs were lost in the area.
The Center for Closing the Health Gap is launching a campaign to raise awareness about food deserts in Cincinnati. Food deserts are areas, particularly neighborhoods, where full-service grocery stores aren’t readily available to residents. The campaign hopes to raise awareness and funding to combat the food deserts in the Cincinnati area. With a funding target of $15 million, the organization plans to help build smaller stores with close ties to the local communities.
A new study from Cincinnati Children’s Hospital resurfaced Greater Cincinnati’s nuclear weapons legacy. Between the 1950s and 1980s, residents of nearby farm communities were unaware they were being exposed to radioactive materials in the air, water and soil from a Cold War era nuclear weapons plant, located 18 miles northwest of Cincinnati. Apparently, the exposure has led to higher rates of systemic lupus in the area.
Greater Cincinnati’s economic recovery could be slowed or boosted by policy, but it will outpace the nation’s economic recovery, according to local economists. Still, the economists caution that there is a lot of uncertainty due to oil prices, the fiscal cliff — a series of tax hikes and budget cuts scheduled to be made at the start of 2013 if U.S. Congress doesn’t act — and the fiscal crisis in Europe.
Cincinnati’s small businesses are more upbeat about the economy. Eleven percent of local family firms expect the economy to improve, but whether that translates to business expansions remains to be seen.
CityLink Center is scheduled to open today. The initial plans for the facility sought to help the homeless with health services, overnight shelter, food, temporary housing and child care. At one point, the center’s opening was threatened due to legal challenges regarding zoning.
Hostess, maker of Twinkies, says it will close down three bakeries, including one in Cincinnati, due to a national strike. According to reports, union workers walked off the job after a new contract cut their wages and benefits. Hostess insists the factory shutdowns will not affect customers.
Top Cincinnati mortgage lenders saw double-digit increases between Sept. 1, 2011 and Aug. 30, 2012. The rise is yet another positive sign for the housing market, which collapsed during the latest financial crisis and recession.
The state agency in charge of higher education released a report highlighting 20 recommendations to improve degree completion in Ohio. Some of the recommendations from the Board of Regents: Adopt more uniform statewide rules regarding college completion and career readiness, push stronger collaboration and alignment in education from preschool through senior year in college, establish a new system of high school assessment to improve readiness for college, and improve flexibility. The board will attempt to turn the report into reality in cooperation with university and state officials.
Too much school choice may be a bad thing. A new study found Ohio’s varied education system, which offers vouchers for private schools and charter schools as alternatives to a traditional public school, may have passed “a point where choice actually becomes detrimental to overall academic performance.”
The Ohio Farm Bureau (OFB) issued an action alert on Saturday telling members to oppose privatizing the Ohio Turnpike. The Ohio state government, led by Kasich, is currently studying possible plans to privatize the turnpike. In a video, an OFB member argues the current turnpike management is fine.
There are still some undecided seats in the Ohio legislature from the Nov. 6 election.
Once again, a reminder not to drive on a sidewalk to avoid a school bus.
Former George W. Bush adviser Karen Hughes says she will “cut out” the tongue of Republican men making “Neanderthal comments” about rape.
A new way to fight bacteria: coat it with a thin layer of mucus.
With a push from Vice Mayor Roxanne Qualls and City Council approval, the Homeless to Homes plan is moving forward. The shelter-moving plan, which was originally put together by Strategies to End Homelessness, will use $37 million in loans to build new shelters for the Drop Inn Center, City Gospel Mission and the YWCA. But some homeless advocates have criticized the plan because it forces them to move homeless shelters they don’t want to move. Josh Spring, executive director of the Greater Cincinnati Homeless Coalition, says the money could be spent better developing affordable housing and creating jobs to help eliminate homelessness.
Just one day after President Barack Obama’s re-election, one left-leaning Ohio group was already making demands. They want federal unemployment benefits renewed. The group’s research director, supported by economic data, says the expiration of those benefits could have bad repercussions for the unemployed and the federal and state economies.
Meanwhile, Cincinnati investment professionals are beginning to renew worries about the federal fiscal cliff. The fiscal cliff, which includes emergency unemployment benefits, is a mix of tax hikes and budget cuts set to automatically occur at the end of the year. The Congressional Budget Office, the nonpartisan agency that measures the impact of federal budgets and policy, has warned about the fiscal cliff’s potential economic damage. Federal Reserve Chairman Ben Bernanke has also warned lawmakers about the fiscal cliff.
A state appeals court ruled today that the city of Cincinnati is allowed to reduce retirees’ health benefits. The cuts in benefits are meant to shore up the city’s pension plan, but retirees, including former City Clerk Sandy Sherman, filed a lawsuit arguing the benefits can only be increased, not decreased. The case could still move to the Ohio Supreme Court.
Hamilton County’s new Democratic sheriff, Jim Neil, is already making plans. He says he favors alternative sentencing to deal with jail overcrowding, and he wants to audit and restructure the sheriff department’s budget to cut waste.
Ohio Attorney General Mike DeWine will be in Cincinnati Thursday to unveil Cincinnati’s first prescription drug drop box. The drop boxes are meant to reduce prescription drug abuse and improper ingestion.
A sign of what could come to Cincinnati next spring: Columbus’s casino reported $18.3 million in revenue for its first month. Cincinnati’s Horseshoe Casino is currently being constructed and is expected to open in spring 2013.
Blue Ash-based Empire Marketing Strategies is buying a plant site in Mason for about $820,000, and it could create 200 jobs.
In case you missed it, CityBeat posted comprehensive election results for Cincinnati, Hamilton County, Ohio and the U.S.
State Democrats and Republicans have an explanation for two incumbents losing in the Ohio Supreme Court: names. On Democrat William O’Neill defeating Republican incumbent Robert Cupp, Ohio Republican Party Chairman Robert Bennett said O’Neill won because he has an Irish-American name. Ohio Democratic Party Chairman Chris Redfern said, “Sharon Kennedy is a great ballot name. That’s why she won.” Redfern says he will introduce legislation that will require party affiliation to appear on the Ohio Supreme Court ballots.
The election didn’t change much in the Ohio Board of Education. It remains five Democrats and six Republicans.
Councilwoman Laure Quinlivan said the approval of Issue 4, which extends City Council terms to four years, will be good for local business. She argues “there’s a great business case to be made for having a more stable and reliable local government.”
While marijuana was legalized in some states, Butler County led what it believes is its biggest marijuana bust in history. More than 900 lbs of marijuana were seized.
Bill Cunningham, local conservative radio talk show host, may retire due to Obama’s re-election. Oh well.
In the story of another conservative meltdown, CityBeat has a special letter for the Lebanon tea party: We’re sorry.
Perhaps the national media’s most under-reported story of election night was that Puerto Ricans favored statehood in the polls for the first time. If Congress and Obama act, the island could become the 51st state.
Popular Science has an open letter to President Barack Obama. While they like how Obama generally supports science funding more than a President Mitt Romney would, they want Obama to do more.
It’s only one day after President Barack Obama’s re-election, and some groups are already demanding action. In a new report by left-leaning Policy Matters Ohio, the group says the expiration of federal unemployment benefits could leave Ohio’s jobless stranded.
“If Congress doesn’t renew federal benefits, the impact in Ohio will be immediate and negative,” said Zach Schiller, research director for Policy Matters, in a statement. “Not only will the unemployed suffer, but the state economy will take a hit as well.”
If Congress and the president do not act by Dec. 29, funding for emergency unemployment benefits approved in mid-2008 will be cut off. Nearly 50,000 Ohioans have been getting federally supported benefits every week, and “the bulk” will be cut off if funding expires, according to the report.
Even without expiration, Ohio is already in a bad spot when it comes to insuring the jobless. Altogether, the number of unemployed receiving benefits is lower than the national average, according to the report. Since 2001, Ohio’s unemployed have received fewer benefits than the national average. In 2011, 63 percent of Ohioans who filed claims received payments, while 71 percent of claimants all around the country got benefits.
The state program seems to be particularly weak. In 2012, the amount of unemployed Ohioans getting state benefits was 22 percent, while the national share was about 26 percent. The report shows getting fewer benefits in Ohio has been the majority trend for at least 29 years.
One statistic that drives the report’s point home is the fact the state only provides up to 26 weeks of benefits, yet the average unemployed Ohioan is jobless for 33.5 weeks, according to the U.S. Bureau of Labor Statistics. That means the average unemployed Ohioan would be left without unemployment benefits for 7.5 weeks if the federal program did not exist.
And it’s not like the benefits offer an easy ride. The benefits “are hardly magnificent,” says Schiller. “Three-hundred dollars a week, you’re not going to take a jet to Tahiti and spend time on the beach with that kind of money. So, in fact, what people do with their $300 a week is spend it on necessities and in their communities.”
Schiller says the trend is poor economics, and the federal and state government should make sure Ohio’s unemployed continue getting benefits they need.
“When I was in high school, we heard of unemployment insurance as what was called an ‘automatic stabilizer,'" he says. “When the economy went into a dive, you would see increases in unemployment insurance that would automatically help stabilize the economy. This was seen by economists as a very useful and important thing that would reduce the depth of recessions.”
Schiller’s claim is backed by economic data. In a May 2012
report, the Congressional Budget Office (CBO), the nonpartisan agency
that measures the effect of federal budgets and policy, said the repeal
of extended emergency unemployment benefits would lower spending by $26
billion in the 2013 fiscal year. It would also increase the deficit,
according to the CBO report: “The weakening of the economy that will
result from that fiscal restraint will lower taxable incomes and,
therefore, revenues, and it will increase spending in some categories —
for unemployment insurance, for instance.”
Unemployment compensation also kept 2.3 million people from falling into poverty in 2011, according to the U.S. Census Bureau.
President Barack Obama won over Mitt Romney in what can only be called an electoral college landslide. He won every single “battleground state” on CNN’s electoral map with the current exception of Florida, although the current lead and remaining demographics to be counted will likely tilt Florida to Obama. Despite the insistence of conservatives and mainstream media pundits, models like FiveThirtyEight that predicted a big Obama win were entirely accurate.
In the U.S. Senate race, Democratic incumbent Sherrod Brown also handily won over Republican challenger Josh Mandel. CityBeat covered the policy and campaign differences between the two candidates in coverage of the first, second and third debate and a cover story.
For the First U.S. Congressional District, Republican incumbent Steve Chabot beat Democratic challenger Jeff Sinnard.
The big takeaway from election night at a federal level: Billions of dollars spent on campaigns later, the U.S. House of Representatives remains in Republican hands, the U.S. Senate remains in Democratic hands and the White House remains in Democratic hands. In other words, billions of dollars were spent to change almost nothing.
At the state level, Issue 1, which called for a constitutional convention, lost. But Issue 2, which was an attempt at redistricting reform, lost as well. CityBeat covered the rise and details of Issue 2 in a story and commentary.
In the state’s legislature races, incumbents swept. Republican Bill Seitz beat Democrat Richard Luken for the eighth district of the Ohio Senate. Republican Peter Stautberg beat Democrat Nathan Wissman for the 27th district of the Ohio House. Democrat Connie Pillich beat Republican Mike Wilson for the 28th district of the Ohio House. Republican Louis Blessing beat Democrat Hubert Brown for the 29th district of the Ohio House. Republican Lou Terhar beat Democrat Steven Newsome for the 30th district of the Ohio House. Democrat Denise Driehaus beat Republican Michael Gabbard for the 31st district of the Ohio House. Democrat Dale Mallory beat Republican Ron Mosby for the 32nd district of the Ohio House. Democrat Alicia Reece beat Republican Tom Bryan for the 33rd district of the Ohio House.
For the Ohio Supreme Court, Republican Terrence O’Donnell kept his seat against Mike Skindell. But Democrat William O’Neill beat Republican incumbent Robert Cupp, and Republican Sharon Kennedy beat Democratic incumbent Yvette Brown.
At the local level, Issue 4, which gives City Council four-year terms, was approved. Issue 42, which renewed a tax levy for Cincinnati Public Schools, passed. Issue 50, a tax levy for senior health services, was approved. Issue 51, a tax levy for mental health services, was approved.
In Hamilton County offices, things got a bit more blue overall. Republican incumbent Joe Deters beat Democrat Janaya Trotter for the prosecutor attorney’s office. Democrat Pam Thomas beat Republican incumbent Tracy Winkler for the office of the clerk of the court of common pleas. Democrat Jim Neil beat Republican Sean Donovan for the sheriff's office. Democratic incumbent Wayne Coates beat Republican Wayne Lippert for the county recorder's office. Republican incumbent Robert Goering barely beat Democrat Jeff Cramerding for the county treasurer's office. Democratic incumbent Lakshmi Sammarco beat Republican Pete Kambelos for the county coroner's office.
In the lower courts, Republican incumbent Pat Fischer beat Democrat Martha Good and Republican Pat DeWine beat Democrat Bruce Whitman for the First District Court of Appeals. Democratic incumbent Nadine Allen and Republican Leslie Ghiz beat Democrat Stephen Black and Republican Heather Russel for the court of common pleas.
In other states, gay marriage and marijuana were legalized. Minnesota voted against a same-sex marriage ban. Tammy Baldwin of Wisconsin also became the first openly gay candidate to win election for the U.S. Senate. Overall, the night was a big win for progressives all around the country.
The Cincinnati Enquirer did not have a smooth Election Day. The Enquirer mistakenly published false early voting results, and the fake results were picked up by a conservative news reporting website. Providing voting results before polls close is typically frowned upon in media circles to avoid discouraging voters with potentially disappointing numbers.
Ohio could be short on physicians in the future. By 2020, the state might need to fill a gap of just more than 5,000 physicians, according to Dayton Daily News.
In September, U.S. employers posted the fewest job openings in five months, according to U.S. Department of Labor. On the bright side, layoffs dropped as well.
Cincinnati-based Macy’s beat third quarter estimates and reported strong earnings.
CyrusOne, a Cincinnati Bell subsidiary, bought a downtown building for $18 million. The purchase is part of CyrusOne’s proposed spin-off from Cincinnati Bell.
Cincinnati-based Kroger is looking good for investors. One money management firm told clients Kroger stock is “an exceptional value.”
U.S. hospitals are on track for 124 mass layoffs in 2012, which could cost 8,700 jobs by the end of the year. However, jobs numbers are still up overall in hospitals.
The Republican head of Hamilton County’s governing board outlined his own alternative for a 2013 budget on Monday, proposing an austere path forward after rejecting other budgets that would raise some taxes.
Board of County Commissioners President Greg Hartmann said his proposed budget would reduce the size of county government by 30 percent, compared to five years ago. He said he wants the board to approve a budget before the Thanksgiving holiday.
“It is a budget of austerity and investment in growth,” Hartmann said.
He added, “It is a structurally-balanced budget,” that doesn’t use one-time sources of cash to make up for shortfalls.
Hartmann’s proposed budget would cut the Sheriff’s Department by about $57,000 or 0.01 percent from 2012 levels; reduce the coroner’s appropriation by 3 percent or $99,000; cut economic development by 5 percent; cut 5 percent from adult criminal courts; and reduce subsidies to the Communications Center and Sheriff’s Department.
Hartmann stressed that it is important to fund public safety as fully as allowable in these tough economic times, as economic development is not possible without it.
Hartmann’s budget comes after commissioners rejected three proposals from County Administrator Christian Sigman.
Sigman proposed $18.7 million in cuts, which Hartmann’s budget maintained in addition to his own reductions.
Two of Sigman’s proposals involved increasing the sales tax to balance the budget.
Fellow Republican Commissioner Chris Monzel said he supports Hartmann’s efforts at austerity, but is working on his own budget proposal as well.
“An austerity budget is the way we’re going to go, and it’s going to be hard,” he said.
The board’s sole Democrat, Todd Portune, said he too is working on his own proposal that he had hoped to have prepared for the Nov. 5 meeting, but was still making tweaks and hoped to present it by the following week.
He hinted that the results of Election Day might impact how he crafts his budget proposal.
“Tomorrow’s results may have an impact as well on the budget that I present as it relates as well to those who are running for county seats,” Portune said. “We have in some cases two very different visions in terms of solutions.”
Both he and Hartmann are up for re-election. Portune is running against Libertarian Bob Frey. Neither candidate has a major party challenger.
Hartmann, who has actively campaigned for Republican presidential candidate Mitt Romney, had a joke in response to Portune’s waiting for the election results.
“I thought you were predicting Romney’s win would make the economy go on the right track,” Hartmann cracked. “I was thinking that’s what you were going to go with.”
Just two days before the general election, President Barack Obama made his case to 13,500 people packed into the University of Cincinnati’s Fifth Third Arena and 2,000 in an overflow room.
Obama cast the race in comparisons to the previous two presidents, comparing his policies with those of Bill Clinton and equating Republican challenger Mitt Romney’s plans with those of George W. Bush.
“So stay with me then,” Obama said. “We’ve got ideas that work, and we’ve got ideas that don’t work, so the choice should be pretty clear.”
With less than 48 hours before polls open on Election Day, a Reuters/Ipsos daily tracking poll had Obama and his Republican challenger locked in a statistical dead heat. However the same poll showed Obama with a slight edge in Ohio, up 48 percent to Romney’s 44 percent.
Obama touted his first-term accomplishments, including ending the war in Iraq; ending Don’t Ask Don’t Tell, the policy preventing homosexuals from serving openly in the military; and overhauling the country’s health care system.
“It’s not just about policy, it’s about trust. Who do you trust?” the president asked, flanked by a sea of supporters waving blue “Forward” signs.
“Look, Ohio, you know me by now. You may not agree with every decision I’ve made, Michelle doesn’t always agree with me. You may be frustrated with the pace of change … but I say what I mean and I mean what I say.”
Nonpartisan political fact-checker PolitiFact on Nov. 3 took a look at Obama’s record on keeping his campaign promises from 2008. The group rated 38 percent as Kept, 16 percent Compromised and 17 percent Broken.
Twice during his speech the president was interrupted by audience members shouting from the stands.
The first was a man on the balcony level of the arena interrupted, shouting anti-abortion slogans and waving a sign showing mutilated fetuses before being dragged out by about five law enforcement officers. Both were drowned out by supporters.
Music legend Stevie Wonder opened the rally for Obama, playing a number of his hits, opening up “Superstition” with a refrain of “on the right track, can’t go back.”
Wonder discussed abortion policy between songs and urged Ohioans who had not already voted to do so either early on Monday or Election Day.
So far, 28 percent of Ohio voters have already cast their ballots. CNN reports that those votes favor Obama 63/35, according to public polling.
Meanwhile on Sunday, Romney campaigned before an estimated crowd of 25,000 in Pennsylvania, according to the Secret Service.
Political rallies always draw a number of the loyal opposition, and this late-evening appearance was no different. Only five people protested near the line to the arena, but what they lacked in number they attempted to make up for in message.
One large sign read “Obama: 666” and another “Obama is the Beast,” alluding to a character in the Christian Biblical book of Revelation.
A man who only identified himself as Brooks carried a large anti-abortion sign that showed pieces of a dismembered fetus.
“I’m here to stand up for the innocent blood that has been shed in this land to the tune of 56 million,” Brooks said. He said he was opposed to the politics of both major party presidential candidates.
“I pray for Barack Obama because his beliefs are of the Antichrist, just like Romney,” Brooks said.
Brooks said his message for those in line was for them to vote for Jesus — not on the ballot, but through their actions and through candidates that espoused Christian beliefs.
“Obama is not going to change things, Romney is not going to change things,” Brooks said. “In the last days there are many Christs, but not the Christ of the Bible. The Christ of the Bible is not for killing children, is not for homosexual marriage.”
In-person early voting is underway in Ohio. Find your nearest polling booth here.
The last debate for Ohio’s U.S. Senate seat took place last
night. The debate between Democratic incumbent Sherrod Brown and
Republican challenger Josh Mandel mostly covered old ground, but the
candidates did draw contrasting details on keeping Social Security
solvent. Mandel favored raising the eligibility age on younger generations, while Brown favored
raising the payroll tax cap. Currently, Brown leads
Mandel in aggregate polling by 5.2 points.
Mitt Romney was in town yesterday. In his speech, he
criticized the president’s policies and campaign rhetoric and touted
support for small businesses. The Cincinnati visit was the first stop of
a two-day tour of Ohio, which is the most important swing state in the
presidential race. But senior Republican officials are apparently
worried Romney has leveled off in the state, which could cost Romney the
Electoral College and election. President Barack Obama is
expected to visit Cincinnati on Halloween. In aggregate polling, Obama
is ahead in Ohio by 2.1 points, and Romney is up nationally by 0.9
The American Civil Liberties Union (ACLU) of Ohio says the
use of seclusion rooms in Ohio schools should be phased out
by 2016. The Ohio Department of Education and Ohio Board of Education
are currently taking feedback on a new policy draft that says schools
can only use seclusion rooms in cases of “immediate threat of physical
harm,” but the policy only affects traditional public schools, not
charter schools, private schools or educational service centers.
Seclusion rooms are intended to restrain children who become violent,
but recent investigations found the rooms are used to punish children or
as a convenience for staff. Currently, Ohio has no state laws
overseeing seclusion rooms, and the Department of Education and Board of
Education provide little guidance and oversight regarding seclusion
The Metropolitan Sewer District of Greater Cincinnati and a City Council task force have a plan to make Cincinnati’s water infrastructure a little greener.
A study found Cincinnati hospitals are good with heart patients but not-so-good with knee surgery. The names of the hospitals that were looked at were not revealed in the study, however.
An economist at PNC Financial Services Group says 10,000 jobs will be added in Cincinnati in 2013.
Cincinnati-based Procter & Gamble has new details about its effort to reduce costs and make operations more productive. The company announced a “productivity council” that will look at “the next round of productivity improvements.” The company also said it will reach 4,200 out of 5,700 job cuts by the end of October as part of a $10 billion restructuring program announced in February.
The world just got a little sadder. Chemicals in couches could be making people fatter.
On the bright side, we now know how to properly butcher and eat a triceratops.
Democratic incumbent Sherrod Brown and Republican challenger Josh Mandel met once again Thursday night for a debate to see who is more qualified for Ohio’s U.S. Senate seat. The candidates were a bit less feisty in their final debate, but the substance behind their words was fairly similar to the past two debates.
Mandel spent a bit less time attacking Brown for “Washington speak,” and Brown spent a bit less time attacking Mandel for dishonesty. However, Mandel did spend a bit more time attacking Brown for being a “career politician,” and both candidates criticized each other for voting along party lines.
Some new details did emerge when Brown and Mandel discussed Social Security. Mandel clarified he would raise the eligibility age for Social Security and Medicare for those around his age — 35 — and younger. To justify the raise, he said life expectancy has grown since those laws were first put into place. He also claimed, “If we maintain the status quo, which is the way of Washington, there will be no Medicare or Social Security.”
Brown responded by saying he wouldn’t raise the eligibility age or reduce benefits, but he would increase the payroll tax cap.
In the case of Mandel’s proposal, there is some important context missing. While it’s true life expectancy has increased in the U.S., it has not increased at the same level for everyone. A 2008 study by the Congressional Budget Office found life expectancy is lagging for low-income individuals, while it’s steadily rising for the wealthiest Americans. A 2006 study published in the International Journal of Epidemiology had similar findings. These studies show increases in the average life expectancy may not be reflective of what’s actually happening within the poor and even middle class. In other words, raising the eligibility age to match the rise in life expectancy could disproportionately hurt the lower classes.
There are also some holes in gauging the eligibility age for entitlement programs with a rise in the average life expectancy. Social Security was enacted in 1935. Between the law passing and 2007, the U.S. child mortality rate dropped about 3.3 percent per year for children between the ages of one and four, according to a study from the U.S. Department of Health and Human Services. This large drop in child mortality rate could be exaggerating gains in life expectancy, which is an average that takes into account the age of deceased children.
Mandel’s implication that raising the eligibility age is the only way to keep Social Security solvent is also misleading. Currently, the payroll tax is set up so it only taxes the first $110,100 of everyone’s income. A Congressional Research Service study from 2010 found eliminating the cap would keep the Social Security Trust Funds solvent for the next 75 years. The downside is this would raise taxes for anyone making more than $110,100. Still, the fact eliminating the cap would extend the trust funds’ solvency shows there are other options, and it shows Brown’s idea of increasing the cap has some fiscal merit.
However, Mandel would not be able to take Brown’s approach because it would mean raising taxes, which Mandel vowed to not do under any circumstance when he signed lobbyist Grover Norquist’s anti-tax pledge.
For the final debate, Mandel and Brown followed similar paths as before and even recited some of the exact same lines. At this point, the candidates have painted clear contrasts. With three debates and a year of campaigning behind them, it’s now clear Brown is mostly the liberal, Democratic choice and Mandel is mostly the conservative, Republican choice.