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Ohio and NAFTA Revisited
By Joseph Zoric
Since
passage of the North American Free Trade Agreement (NAFTA) in 1993
politicians and other political pundits have stated that NAFTA has done
harm to the economy. Starting with Ross Perrot’s
famous “giant sucking sound” to the recent primary
election speeches of Senators Clinton and Obama who crisscrossed the
state claiming that NAFTA has cost the state tens of thousands of
manufacturing jobs, politicians of both political persuasions have
railed against the agreement as a bad deal for Ohio.
An examination of the data, however, reveals that the criticisms of
NAFTA are quite unfounded.
Buckeye Voices
In this week's Buckeye Voices podcast, American Council for Capital Formation Chief Economist Dr. Margo Thorning addresses the economic perils associated with the federal Lieberman-Warner emissions bill. Dr. Thorning estimates that if the bill takes effect Ohio will lose 44,000 to 67,000 jobs by 2020 and 100,000 to 143,000 jobs by 2030. In addition, Dr. Thorning warns Ohioans' electricity costs will increase by 30% to 38% by 2020 and 126% to 177% by 2030.
Financial Problems Predate Payday Loans
The
Akron
Beacon Journal reports "Six of Ohio's big-city mayors have
come out in support of a crackdown on payday lending practices....
Critics say the businesses are dependent on trapping customers in debt
by forcing them to take out additional loans to pay off previous loans."
In
Batchelder,
Hagan Wrong on Payday Loans, Buckeye Institute analyst Marc
Kilmer writes, "It is certainly true that many people take out multiple
payday loans over the course of the year. When economists analyze why
people do this, however, they find that the borrowers'
underlying financial situation leads them into this behavior. It is not
payday loans causing their financial problems. Instead, their financial
problems lead them to seek payday loans. If legislation eliminates
payday loans it will not eliminate the underlying financial problems of
borrowers."
Debt Plan Will Hurt Economy
According to the Dayton Daily News, "House Speaker Jon Husted, R-Kettering, and Senate President Bill Harris, R-Ashland, aren't ready to go along with Democratic Gov. Ted Strickland's plan to put a $1.7 billion bond issue on the November ballot. That could force Strickland to authorize the gathering of the more than 400,000 signatures needed to put the proposal before voters."
In
Govenor's New Deal is a
Raw Deal, Buckeye Institute Fellow Dr. Sam
Staley writes, "Ohioans already spend nearly four months working off
the cost of local, state, and federal government services.
With the new debt the governor wants to heap on, taxpayers are destined
to add another month working for the government. This leaves fewer and
fewer dollars to fuel economic growth in the private
economy. That's a recipe for driving away
entrepreneurship and private investment, not keeping or nurturing it."
Third Frontier Corporate Welfare
The Dayton Business Journal reports, "Three local companies will get a piece of $30 million in state grants awarded for energy and fuel cell development.... The funds, given to 29 companies across the state, were awarded through the Third Frontier Commission, designed to help bring emerging technology into the Ohio marketplace, and the Ohio Fuel Cell Initiative, a $103 million program that aims to spur job creation in Ohio while positioning the state as a fuel cell industry national leader."
In
Ohio
Doesn't Need Any More Third Frontier Debt, Buckeye Institute
advisor Douglas Oliver writes, "The concept behind the Third Frontier
is that the State of Ohio should take the place of venture capitalists
by using state funds instead of private funds to finance
commercialization. The state, however, cannot be a successful
venture capitalist. For one thing, venture capitalists risk
their own money. As such, they are highly motivated to
finance only those innovations that are likely to succeed in the
market. Conversely, they must be ready to immediately stop
financing a project as circumstances change. Successful
venture capitalists must keep their plans from competitors and remain
nimble! In contrast, state agencies must be both transparent
to the public and accountable to state auditors."
Buckeye Institute in the News
In his weekly New York Sun column, Buckeye Institute Ronald Reagan Distinguished Fellow Ken Blackwell discusses Philadelphia's persecution of the Boy Scouts.
Marc Kilmer's article on payday lending was published by Business First of Columbus, Dayton Daily News, Akron Beacon Journal, the Lima News, and the Hillsboro Times Gazette.
The
Buckeye Institute's research was cited in a Lima
News story on the Governor's bond plan.
