Ohio's economic picture offers political dilemma

Gov. John Kasich warned Wednesday of an economic slowdown happening in the swing state ahead the presidential election, even as Huntington bank announced it is bringing 250 jobs to Ohio.
Associated Press
Oct 25, 2012

 

The Republican governor praised the additional jobs at a news conference with legislative leaders and Huntington CEO Stephen Steinour.

But the announcement highlighted the political dilemma that Kasich faces of promoting the state's recovery as a model while saying President Barack Obama's policies are holding Ohio back.

"There's so many people just on the sidelines, holding off," Kasich later told reporters, noting what he said was uncertainty from Washington and the outcome of the presidential election.

"We know things are slowing down a little bit," he said.

Regional bank Huntington Bancshares Inc. said Wednesday it plans to add 250 jobs to its Ohio operations over the next four years to help build its credit card business. The positions would be in customer service and marketing, among other areas.

Steinour said a bipartisan bill passed by the state Legislature helped clear the way for the bank to create the jobs.

Huntington is developing its own line of business and consumer credit cards. Because some states allow financial institutions to charge higher interest rates and other fees than Ohio, the bill allows Ohio-chartered financial institutions to charge rates and fees above the state's current maximums under law.

Columbus-based Huntington operates almost 700 bank branch offices in Ohio, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia.

Kasich told reporters that most businesses would rather do nothing than risk new investments while it's unclear what will happen with health care, taxes and the nation's debt. "I'm not trying to be partisan here," he added.

Ohio's unemployment rate ticked down to 7 percent last month — its lowest in four years — after three consecutive months of holding steady at 7.2 percent. It remains below the national rate of 7.8 percent.

Kasich said Wednesday that too many people in Ohio remain out of work. "We're doing really well, but we have a long, long way to go," he said.

The governor supports Republican Mitt Romney and has campaigned for the GOP presidential nominee around Ohio. On Wednesday, he campaigned for Republican U.S. Senate candidate Josh Mandel.

Asked how the state's job numbers would factor into the Nov. 6 presidential election, Kasich said, "There's no question that if the unemployment's down to 7 percent that people feel better. But the election's so close, that I don't know how it's going to come out at this point."

Ohio has 18 electoral votes, seventh most in the nation, and no Republican has won the White House without carrying it.

Each side has used the job numbers in Ohio to portray their records in the best possible light.

Obama supporters have pointed to his administration's auto bailout as a reason for Ohio's unemployment rate being below the national average.

House Speaker John Boehner, who is from the Cincinnati area, has noted the political predicament in his home state. He's said that Kasich's success fixing government regulations and attracting new businesses as governor may be working against Romney in Ohio.

Kasich told reporters he doesn't pay attention to surveys, but he's under the impression that people are giving credit to state leaders.

"There are some people who would give the president credit, but that's not where most Ohioans see it," he said. "They see it, you know, through the administration, the legislature — that they deserve compliments for it."

"I don't even like this discussion," Kasich added. "People are going to work and I'm happy about it. Let the chips fall where they may."

 

Comments

Contango

250 jobs are nice, but unfortunately financial institutions don't tend to generate much in the way of state and local sales tax.

OH seriously needs a total revamp on it's taxing system.

meowmix

Oh bull Contango--- Kas(ick) knows darn well Ohio is recovering but now has to down-play the recovery since Mutton's is down by 5%.
His statement : "I don't even like this discussion," Kasich added"---pretty well said as much.

Contango

@ meowmix:

So Gov. Kasich is doin' a great job - good to hear that from you.

FYI: If the national economy were doin' great Mr. Bernanke would not be pumping money into the system. He's helping to keep it on life support.

Get out of your political news bubble and read some financial info once in a while.

http://www.bloomberg.com/news/20...

luvblues2

"But the announcement highlighted the political dilemma that Kasich faces of promoting the state's recovery as a model while saying President Barack Obama's policies are holding Ohio back." Next breath: "Kasich told reporters that most businesses would rather do nothing than risk new investments while it's unclear what will happen with health care, taxes and the nation's debt. "I'm not trying to be partisan here," he added."

IE: "It's Obama's fault, but I'm not being partisan..."

2cents's picture
2cents

Kasich is doing things for the state. Let's keep the federal government at bay and let the states control more.

Is this what not Romney is saying also on most platforms? The federal government has been handing out fish; time to learn how to fish!

Contango

@ luvblues2:

"It's unclear what will happen with health care, taxes and the nation's debt."

Reads "non-partisan" to me, since Mr. Obama has whined for months about the Congressional Repubs for not raising taxes on the rich and working to repair the nation's debt problem.

Also: Let's not forget the looming "Fiscal Cliff."

BTW: The Federal debt ceiling will need to be raised within the next couple of months - should be good "partisan" fun!

Really are you ...

You can bet that congress will raise the debt ceiling again, it is the perpetual circle. First, congress says we cannot raise the ceiling. Second, congressional dems and repubs try to get their lobbists ideals passed as bargaining chips. And finally hours or days before the deadline, we have passed a new budget (just so we won't miss a weeks pay). Blame the debt on the President. It does not matter who is or who would have been the president. McCain, Obama, or Romney. It is the lobbists in DC and corporate heads that are trying to get richer by taking our stateside jobs to foreign countries. Forgetting that they are American and the United States is in an economic decline because they want to make more money. If you are blessed with being wealthy monetarily, how much more money do you need to be monitarily wealthy? My point is Get the lobbists out of government, and bring back those jobs that were taken to foreign countries. If the corporations do not want to bring those jobs back to the states, the tax the snot out of them like china taxes our goods going to them.

luvblues2

Like.

Contango

@ Really are you ...:

Wanna know where the "real" wealthy live? Govt. spending fuels it.

Know this: 10 of the 15 richest counties in the U.S. surround Washington, DC.

We have a political ruling class of kleptocrats in this country who produce NOTHING and live off the backs of taxpayers.

http://www.slate.com/blogs/money...

Really are you ...

Right, great, exactly. Lobbists and congress. Wait some of the members of congress live in their offices on Capitol Hill to avoid daily cummutes to work. If they do not leave their place of work, how do they realize how their laws they pass ultimately affects in American public? By watching FOX, CNN, and MSNBC. Revamp congress, make them campaign like the presidential debates, that would be an even better alternative in rebuilding our torn economy.

Contango

@ Really are you ...:

Not 'just' Congress and lobbyists but the entire expensive bureaucratic mess of "paper pushers."

It's been called "The Iron Triangle."

jas

All the talk in the Presidential race about reducing federal regulations is pretty much meaningless when it comes to job creation by small businesses. Every small businessman knows that the regulations that limit their ability to hire people come from state and local governments, not the federal government. Romney is campaigning on an issue he has very limited ability to influence. State and local political leaders have substantially more impact on job creation by small businesses than anything the federal government does.

Contango

@ jas:

You can't just simply remove Federal rules, regs and taxation out of the mix.

The Feds interfere with the states and locals with impunity.

The 10th Amend is almost meaningless with the amount of centralized planning coming out of DC.

Federalism pretty much started on life support with the 16th Amend; when the Feds could tax individuals directly in their respective states.

jas

Isn't it odd that probably the two greatest GOP presidents, Lincoln and Theodore Roosevelt, were strongly in favor of increasing the power of the federal government? Times have certainly changed. Today's GOP often forgets their own heritage - increasing federal power for abolishing slavery and trust busting.

Contango

@ jas:

Ancient history; now we've got the 21st Century Progressives (Fabian Socialists) who want to rule by diktat from DC.

The Dems won't quit spending and the Repubs don't have the political will to stop it; so the U.S. marches toward the fiscal 'canyon'.

OMG.LOL.WT_

WOW, 250 jobs, just to get suckers to put more on their credit cards for higher interest rates.
Consumer debt good Government debt bad.

Really are you ...

We are being taxed to death. Lol, really. From the way I see it, companies and corporations are taxed after expenditures. Gross payment to employees, then taxed to recieve net pay. When spending our hard earned money, we are taxed again on everything except for store bought food. Lol, a gallon of milk almost costs as much as a gallon of milk. Out west it is more than a gallon of milk. Tax, tax, tax and lets increase taxes.

OMG.LOL.WT_

"The Republican governor praised the additional jobs"
Naturally, more money for banks.

Contango

@ OMG.LOL.WT_:

Oh come on. Happy days are here again!

Banks are flush with cash courtesy of Uncle Ben, credit is flowing and it's up to the U.S. consumer to spend, spend, spend our great country back to prosperity!!!

Randy_Marsh

The only thing the US manufactures is Debt, Until we get back to actually making anything you can expect it to get worse.

eriemom

I don't know where to put this. You all need to read this. I copied a part of it below.

Obama hired Steven Rattner, himself a millionaire hedge fund manager, to head the task force that would negotiate with the troubled firms and their creditors to avoid the collapse of the entire industry. In Rattner’s memoir of the affair, Overhaul, he describes a closed-door meeting held in March 2009 to resolve Delphi’s fate. He writes that Delphi, now in the possession of its hedge fund creditors, told the Treasury and GM to hand over $350 million immediately, “because if you don’t, we’ll shut you down.” His explanation was corroborated by Delphi’s chief financial officer, John Sheehan, who said in a sworn deposition in July 2009 that the hedge fund debt holders backed up their threat with “an analysis of the cost to GM if Delphi were unwilling or unable to provide supply to GM,” forcing a “shutdown.” It would take “years and tens of billions” for GM to replace Delphi’s parts. At that bleak moment, GM had neither. The automaker had left the inventory of its steering column and other key components in Delphi’s hands. If Delphi laid siege to GM’s parts supply, the bailout would fail and GM would have to be liquidated or sold off—as would another Delphi dependent, Chrysler.
Rattner could not believe that Delphi’s management—now effectively under the hedge funders’ control—would “want to be perceived as holding GM hostage at such a precarious economic moment.” One Wall Street Journal analyst suggested that Singer was treating Delphi “like a third world country.” Rattner likened the subsidies demanded by Delphi’s debt holders to “extortion demands by the Barbary pirates.”
Romney has slammed the bailout as a payoff to the auto workers union. But that certainly wasn’t true for the bailout of Delphi. Once the hedge funders, including Singer—a deep-pocketed right-wing donor and activist who serves as chair of the conservative, anti-union Manhattan Institute—took control of the firm, they rid Delphi of every single one of its 25,200 unionized workers.
Of the twenty-nine Delphi plants operating in the United States when the hedge funders began buying up control, only four remain, with not a single union production worker. Romney’s “job creators” did create jobs—in China, where Delphi now produces the parts used by GM and other major automakers here and abroad. Delphi is now incorporated overseas, leaving the company with 5,000 employees in the United States (versus almost 100,000 abroad).

Mr. Romney benefited from TARP.

The Big Dog's back

Good find Eriemom.

eriemom

It seems that General Colin Powell agrees with my statement abou the fact that Mr. Romney has surrounded himself with Neocons to advise him in the area of foreign policy. We should all be concerned about where that could take us.

coasterfan

Colin Powell, an avowed Republican, is backing Obama. He cites the evidence that the economy is improving, and says that Romney clearly hasn't done his homework, with regards to foreign policy.

What bothers me is that Romney STILL hasn't given any credible statistics to show how he could possibly cut the deficit. He plans to further cut income/revenue, but plans to renew the Bush tax cuts to the rich, while expanding defense spending by $2 trillion. The math is easy: if you cut income and increase spending, you can't address the deficit.

The above problems are just at the federal level. Individual middle-class Americans will feel the pinch right in their pocketbook because Mitt is on record promising that he will do away with home mortgage tax deductions and college loan deductions on our federal taxes. He also plans to cut funding for college Pell grants. Overnight, these policies will take at least $3000 out of my pocket next year. It'll be the same for all of us, unless you're in Mitt's Lucky 1% Club.

It's not too late to wake up and take Romney at his word, that he will do the abovementioned things he promised to do during the GOP primaries are the real Romney. Regardless of whether you think Obama is the answer, it's quite obvious that Romney is NOT the answer. Romney's economic plan, what little he has divulged, is obviously a carbon copy of George W. Bush's. Regardless of what you think of Obama, does anyone really want to go back to 2007-2008? See kids, THAT is the "change" that Romney will bring.

If you have 2 minutes, check out a video on YouTube: do a search for "The Romney Presidency: A (Plausible) Look Back"

Mr. D

@eriemom. . . Good find, good read. To bad the tea drinkers wont read it.