Therefore, based on this, with a liberal Democrat Hillary Clinton disciple like Ted Strickland in Office, and with socialist hacks like Marc Dann at AG, expect Ohio's economy to go in the crapper. From THE Ohio State University:COLUMBUS, Ohio -- Ohio's economy could get a much-needed jump-start if the state focused more on helping small businesses and self-employed workers succeed, according to a new Ohio State University policy brief. But policymakers need to avoid methods that could limit economic gains, the authors say.
"The January 2008 report, "Growth and Change: Does Enhancing Ohio's Small Businesses and Entrepreneurs Provide the Key to Growth?" was issued by Ohio State University's Swank Program in Rural-Urban Policy and the Exurban Change Project, both housed within the College of Food, Agricultural, and Environmental Sciences. The brief examines the strengths and weaknesses of Ohio's self-employed workforce and entrepreneurial climate over time. It's available online on the programs' Web sites, http://aede.osu.edu/programs/Swank/ and http://exurban.osu.edu/.
"The report comes just as more attention is turning to signs of an economic downturn. In the face of anemic job growth, Ohio's unemployment rate increased to 6 percent in December, up from 5.6 percent in November. Both statewide and nationally, concerns about slow retail sales, the housing market, gas prices, inflation, and the stock market have increased anxiety about a possible recession.
"Boosting the success of the state's self-employed could be a key factor in a turnaround, said the report's lead author Mark Partridge, the college's Swank Professor of Rural-Urban Policy.
"Self-employment has been a significant aspect in Ohio's job growth for decades, Partridge said, even more so in recent years.
"'Since 2000, if it wasn't for the growth we've seen in self-employment, the state would have actually lost jobs,' Partridge said. 'Our job growth in the first part of this decade would have been zero.'
"In fact, between 2001 and 2005, Ohio's total number of wage and salary jobs fell by 2 percent, while self-employment increased more than 15 percent. In rural areas, if trends continue, the number of self-employed workers will soon exceed the number of manufacturing workers, he said."
"However, self-employment doesn't mean what it used to. The report reveals that earnings of self-employed Ohioans have drastically declined over the years. Statewide, self-employed workers in 1969 earned slightly less than the average wage-and-salary worker, but by 2005, those earnings fell to just 65 percent of the average wage and salary worker. The statistics are even more stark in rural areas: In 1969, rural non-farm self-employed workers earned 4 percent more than a typical wage-and-salary worker, but in 2005, they earned only half of the typical wage-and-salary worker's income."
"'We don't know how many of these self-employed workers are just working part-time, or earning some money on the side,' Partridge said. But the trends are clear on the growing importance of self-employment in Ohio.
"Unfortunately, Partridge sees indicators that many of the state's newly self-employed are motivated more by desperation -- from a recent job loss, for example -- than an entrepreneurial spirit. 'It's a survival strategy,' said co-author Jill Clark, program manager of the Exurban Change Project.
"In comparing indicators of innovation and creativity, Ohio lags behind national averages. Despite having the seventh-largest population among states, Ohio ranks 29 in the number of patents issued; 32nd in the value of initial public stock offerings by companies; 35th in venture capital activity; 24th in the number of scientists and engineers in the workforce; and 19th in industry and investment in research and development.
"'Ohio is just not performing very well,' Partridge said. 'If we want more creative, innovative small businesses, we need to provide an environment to support that.'
"Clark said the state needs to recognize its strengths: 'We have a lot of assets,' she said, citing the state's universities as well as institutions such as the Cleveland Clinic and Battelle. 'We just need to build on them.' In addition, she said, research shows that existing businesses create 60 to 90 percent of all new jobs. Programs to help both the self-employed and the state's small businesses could have added value, she said.
"In one of its policy recommendations, the researchers urge caution about a common method communities use to try to boost economic activity: providing tax incentives and grants to local businesses. Unless those incentives have a broad-based community impact, they tend to provide benefits only to the grantee, while the remaining businesses and residents pick up the remaining tax burden.
"'It's hard for the government to pick what's going to be a winning industry,' which is what it is doing when it provides tax breaks to certain businesses, Partridge said. 'A better alternative would be to keep all taxes as low as possible to still provide the services that are needed, and treat all businesses equally.
Strickland has already hinted he wants to stick it to businesses and citizens alike with higher taxes...after all, don't want to cut entitlements and pet projects, do we Teddy? Ohio is near the bottom in business climate, and with the Dems in the executive control, it will only get worse. If things are not corrected, Ohio is the next Michigan...
Some of the other recommendations:
Examine ways to support different types of business start-ups in different areas of the state. For example, successful new businesses in rural areas will likely differ from those in urban areas; research could determine the most effective ways to support them.
Streamline regulatory processes and reporting burdens of small businesses as much as possible. State agencies, such as the Department of Development and the Environmental Protection Agency, as well as similar entities at the local level, should recognize that small businesses have less capacity for reporting and offer ways to meet regulations with less demanding methods.
Find ways to remove barriers of becoming self-employed and starting a new business. For example, a big hurdle today is the cost of health insurance. If the state could reduce that cost, more businesses would thrive and the self-employed could be more successful.
Consider a coordinated, statewide effort to offer standardized coursework for Ohio's entrepreneurs. Offered through community colleges and universities, such instruction could include how to start a business and identify market opportunities, including marketing, accounting and legal issues for new and existing business owners. Such educational information is already offered by several institutions, but a statewide system that provides uniform information and a certification process could call more attention to such opportunities and permit continual review and revision to reflect changing best practices.
Expect Ted and the Socialist Executive officers in Ohio's government to turn a blind eye to rational thought....
I really like what Brian over at One Oar in the Water has to say, and Couldn't agree more:
While the authors do point to areas such as keeping taxes low and eliminating duplication of governmental services they miss the mark admittedly through their lack of a clear understanding of the rural environment and entrepreneurship.
Developing broadband services and health insurance options will not create the appropriate environment, nor will sinking money into universities for new “innovation centers.” The elimination of taxes and regulations will open more doors for lower and middle class residents and will provide the incentive for the entrepreneur to take the risk associated with an enterprise.
I found it interesting upon inspection of their sources, not one free market institution was referenced. Ironically, it’s the free market think tanks that are in fact true entrepreneurs where as the universities are free to research at will as the university coffers are steadily filled with tax dollars, and this report demonstrated this fact.
As usual, the academics can diagnose a problem, but have no clue about the solution. And the way to lower health care costs is through tort reform and getting govt. out of health care, not getting further in.
