Saturday, August 31, 2013

Paradox of Thrift

Economic concept that if everyone tries to save an increasingly larger portion 

of his or her income, they would become poorer instead of richer. This is because the economy will slow down from reduction in demand and the very same people would lose their jobs. This theory, however, applies mainly to Keynesian economics where increased savings represent a diminishing circular flow of income.


OLD POSTER
MatherPoster2Final

Thursday, August 29, 2013

Sales Tax Rate Increase

Opinion

The new Ohio sales tax rates kicks in on the first of September. The Labor Day weekend is an ironic time to add a tax rate increase on the working class.
Sales tax is considered a regressive tax because, generally, the tax rate decreases as income increases.
As an example: Household (a) has an income of $50,000 and spends $40,000 on taxable goods and services. Household (a) sales tax rate is 4.6% of income.
Household (b) has an income of $250,000 and spends $100,000 on taxable goods and services. Household (b) sales tax rate is 2.3% of income.
If household (b) were very thrifty and only spent $40,000 on goods and services the sales tax rate would be less than 1% of income.
Paul Hunter 
paulhunter45177@gmail.com




Tuesday, August 27, 2013

More “JobsOhio” Information


He [spokesman for the inspector general] noted that the legislature and Gov. John Kasich have limited the authority of watchdog agencies to investigate JobsOhio, which is also exempt from most state ethics, open-records and open-meetings laws.
An analysis of the bill creating JobsOhio noted that the inspector general has jurisdiction over the entity’s capacity as a person who does business with the state, but not as a state agency.

Paul Hunter

Sunday, August 25, 2013

Economic History Of The U. S

The Amateur Economist

One of the features in recessions since the Great Depression, which is not common with those that came before, is government protection of bank deposits. Banks would become insolvent along with their depositors in many cases during “runs on the banks”. The creation of the FDIC shifted the burden of insolvent financial firms from depositors to member banks, with the federal treasury as the last backstop. The pattern was extended further by the creation of TARP during the current recession. It placed almost the entire burden of the rescue on the American financial system with those who pay taxes.

Panic in economics - a severe financial disturbance, such as widespread bank failures, feverish stock speculation followed by a market crash,


Panic of 1797
The United States’ first major economic emergency struck in 1797 as a result of a land speculation bubble bursting.
Depression of 1807
The Depression of 1807, which lasted about three years
815-1821 Depression
The U.S. government had racked up heavy debts during The War of 1812,
Panic of 1837
As the United States continued to push westward and “acquire” Native land
s.

Panic Of 1857
Due in part to the inflation caused by the discovery of gold in California, the
recession in 1857 quickly devolved into a panic after the failure of the New York branch of the Ohio Life Insurance and Trust Co.
Panic of 1873
A series of disasters in the few years before the crash of 1873
Panic of 1893
1893 saw the results of years of over-extension of railroads and the slowing of general 
economic expansion across the country.
Panic of 1907
Since the Jackson era, the American banking system had been decentralized. Consequently, during periods of boom, banks were able to lend unchecked.
Depression of 1920-21
Although relatively short compared to many other U.S. recessionary periods, the Depression of 1920-21 was extremely severe.  Following World War I
The Great Depression
A period of rampant speculation in the 20′s led to a market crash of epic proportions. Over the course of two days, beginning with the infamous “Black Tuesday,” the stock market lost more than a quarter of its value. Widely regarded as the worst recession in U.S. History, the Great Depression lasted 11 years, 8 months and saw unemployment rates of nearly 25%

Read more:
The 13 Worst Recessions, Depressions, and Panics In American History - 24/7 Wall St. http://247wallst.com/investing/2010/09/09/the-13-worst-recessions-depressions-and-panics-in-american-history/#ixzz2d0IPWyrR


My research indicates that the U. S. experienced a financial panic or depression, on average, every 14 years from 1797 to 1940. In the seventy years since the great depression ended with the massive stimulus of government spending for WW II there has been neither a panic nor a depression. The country came close in 2007-2008 but lessons learned from the great recovery of the 1930s were employed and the economy bottomed out short of a depression.

Some, including this writer believe that the New Deal, a series of domestic economic programs enacted in the United States between 1933 and 1936 were at least partly responsible for the economic recovery and the evening out the boom and bust business cycle that had produced past panics and depressions. In the seventy plus years since the depression ended the United States has experienced no panics or depressions.
Those programs involved presidential executive orders or laws passed by Congress during the first term of President Roosevelt. “The programs were in response to the Great Depression, and focused on the "3 Rs": Relief, Recovery, and Reform. That is Relief for the unemployed and poor; Recovery of the economy to normal levels; and Reform of the financial system to prevent a repeat depression.

The economic theory behind the new deal and subseqent policies implemented by succeeding congresses and Presidents was the brain child of Maynard Keynes, a British economist.

John Maynard Keynes 1883 – 21 April 1946) was a British economist whose ideas have fundamentally affected the theory and practice of modern macroeconomics, and informed the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the founders of modern macroeconomics and the most influential economist of the 20th century. His ideas are the basis for the school of thought known as Keynesian economics, and its various offshoots.



Friday, August 23, 2013

Excess labor value on steroids

How long can a nation prosper with these trends?
 
 
 
 
 
 

What Is ALEC


Who's connected to ALEC?

The American Legislative Exchange Council


(ALEC) is an American organization composed of  legislators, businesses and foundations which produces model policies for state legislatures and promotes free markets, limited government, and federalism at the state level. According to the organization's website, members share a common belief that "government closest to the people" is "fundamentally more effective, more just, and a better guarantor of freedom than the distant, bloated federal government in Washington, D.C.” In a Dec. 2011 opinion piece critical of ALEC which appeared in The Nation magazine, John Nichols described ALEC as a "collaboration between multinational corporations and conservative state legislators."

ALEC provides a forum for state legislator and corporate members to collaborate on "model policies"—draft legislation that members can customize for communities and introduce for debate in their own state legislatures. Approximately 200 per year become law. ALEC has produced model policy on issues such as reducing corporate regulation and taxation, tightening voter identification rules, digital due process streamlining or minimizing environmental protections, over-criminalization and promoting gun rights. ALEC also serves as a networking tool among state legislators, allowing them to research the handling and "best practices" of policy in other states

Three of the 30 Ohio politicians that are members of ALEC


Steve Stivers R, U.S. House of Representatives

Ohio legislators with ALEC ties.
Speaker William G. Batchelder (R-69), ALEC member
Rep. Peter A. Beck (R-67), ALEC Communications and Technology Task Force Member [Warren County]
Rep. Cliff Rosenberger (R-86), ALEC Communications and Technology Task Force MemberSen. Bob Peterson (R-17), ALEC Member







Wednesday, August 21, 2013

Nature and Nurture II


At some point in the not to distant future the time tested economic model of investors forming corporation and hiring worker to produce goods that the workers, in turn, consume will have to be revised.
As discussed in Part I the need for a mass class of low and semi skilled manufacturing workers is rapidly disappearing. Low paying retail sales and service employment will not support a prospering consumption based economy.
I posit that a new wealth distribution system must evolve as the need for manufacturing labor declines.
There are trillions of dollars worth of basic public infrastructure creation and maintenance needs that are not now being accomplished.
Where will the money come from to pay for this public work as the labor tax base declines.
1. Tax the machines that have replaced the tax paying workers or 2. Corporations can assume responsibility for infrastructure in their area of interest and operation, using the huge stockpile of cash earned from reduced labor costs.
These are just two of many possible ideas and the details are too complex to be dealt with in this forum.
Maybe this is a beginning of a much needed political and social conversation.
After all “what's a society to do with the under-natured and under-nurtued demographic as low skilled manufacturing jobs disappear.
Send me your thoughts




Monday, August 19, 2013

Whats going on in Columbus?

The next time you see Representative Cliff Rosenberger or Senator Bob Peterson ask them what's going on up at the state capitol.
The single party state government, feeling its oats, has turned a routine biannual budget into a political statement. How will this effect the rank and file residents?

a. A percentage based income tax reduction that will save a household earning $51,000 per year an estimated nine dollars. The top one percent of earners will see a savings of around $6,000. (Calculations from “Policy Matters Ohio”)
b. A regressive sales tax increase will adversely affect the lower income population.
c. DE-facto tax increase, wherein the state will no longer reimburse county treasurers for the 12.5% roll back on property taxes on any new local tax levies. An owner occupied residence valued at $125,000 will pay the additional $26 per year that the state now pays for a new 5 mill school or city tax levy.
d. Home owners with earnings over $30,000 and turning 65 this year will no longer receive the $300 reduction on their annual property tax bill. The state will be saving that amount.
e. Among other small business, single person lawyer or hedge fund manager offices will receive a 50% cut in taxes.

Granting a state government department, “Jobs Ohio” the right to make decisions on spending taxpayer's money behind closed doors and without state auditor accountability.

Cities are now allowed to discuss corporate financial incentives, (tax payer money)
in secret meetings.





Saturday, August 17, 2013

The Ohio Miracle


Someone's, not your, Jobs Ohio is doing good work tn their secret meetings, behind closed doors and spending your money.
Paul Hunter

Evidence:
8/16/2013 10:10:00 PM
Ohio's jobless rate remains steady for July

COLUMBUS, Ohio (AP) — The state says Ohio's unemployment rate held steady in July at 7.2 percent, matching what it was a year ago and remaining slightly higher than earlier in 2013.
Ohio's seasonally adjusted unemployment rate has varied only slightly since the beginning of the year. It has hovered below the U.S. unemployment rate, which dropped slightly to 7.4 percent for July.
The Ohio Department of Job and Family Services says Ohio had 416,000 unemployed workers last month, up about 3,000 from June.
Nonfarm wage and salary employment increased 5,300, bringing good news a month after Ohio reported the second-largest job loss for any state in June.
The categories that added jobs in July include manufacturing, leisure and hospitality, and trade, transportation and utilities.


Friday, August 16, 2013


Nature, Nurture and Work
Opinion 
What’s a society to do with the under-natured and under-nurtured demographic as low skill manufacturing work disappears.
In the past a good paying job could be had by anyone that was willing to work hard even if they were under educated and may have lacked the drive to aspire to greater things.
Theses folks made up the majority of the nation's consumer class as home buyers, bass boat and pick up truck owners. They fueled the economy and all levels of the economic ladder prospered.
Henry Ford, the person who started the world's second industrial revolution, also conceived the concept that since it was now possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. The $5 per day wage helped better the lot of all American workers and contributed to the emergence of the American middle class.
As we rapidly enter the third industrial revolution where scores of 3-d printers, operated and maintained by a couple of highly trained employees can create thousands of components for consumer goods. Those parts are then assembled into a finished product by an assembly line of robots operated by a few other highly trained employees.
As a consumer driven economy this country needs consumers with the financial where with all to purchase products no mater how the products are produced. Low wage retail and service workers will not be able to fill the consumption deficit. You can't buy a bass boat with pay day loans.
How can we replace those lost consumer dollars?
See next installment.

Paul Hunter paulhunter45177@gmail.com

Wednesday, August 14, 2013

Ohio Ranks Low in Transparency

 

We're number! We're number 40!

I have mentioned in several postings that our state leaders are closing the door on openess in government actions.
P.H.

The following is exerped from the Toledo Blade newpaper.

A new year-long study by the Better Government Association, a nonpartisan watchdog group, ranks Ohio 40th among the states on its “integrity index.” The BGA bases its ratings on the effectiveness of each state’s sunshine laws in four areas: Open meetings, open records, whistle-blower protection, and official conflicts of interest.
........ Emily Miller, the BGA’s policy and government affairs coordinator, observes that transparency is essential to combating political corruption. “You deserve to know how your money is being spent — that’s a basic democratic right.
The state’s open-records law is somewhat better, but still mediocre. There is no explicit appeals process, much less an expedited one, when requests are denied. Ohio Attorney General Mike DeWine has a system to mediate records disputes, but it’s voluntary and limited. Otherwise, a citizen has to take the government to court.
A new state law makes it easier for local governments in Ohio to meet secretly to cut “economic development” deals with private interests. JobsOhio, the private corporation that effectively replaced the state Department of Development, spends lots of public money with little accountability.

Paul Hunter paulhunter45177@gmail.com

Tuesday, August 13, 2013

Imaginary Board of Educationmeeting:


Member: I move that the board study the viability of contracting out district bus service.
Member: I second the motion.
President: I have a motion and a second, any discussion?
Member: In my opinion the board should look at any long term expenditure that might be trimmed without affecting classroom funding.
President: Roll call vote please.

 
VANDALIA — 
Nearly 30 bus drivers will lose their jobs this summer as Vandalia-Butler City Schools prepares to outsource busing to Cincinnati-based First Student Inc

On July 1, First Student will begin serving Valley View Local Schools under a 10-year contract.
Under the agreement, First Student will operate, maintain and manage all of the Germantown, Ohio-based district’s student transportation services.
First Student will install additional safety features on the district's school buses, including GPS, onboard digital video cameras and Child Check-Mate electronic reminder systems.Officials said First Student is currently interviewing district drivers to join its transportation team.

Apr 24, 2013 -COLUMBUS, Ohio - Columbus City School votes to end contract with First Student and votes to purchase 300 additional buses. Read more:

Milford schools:

Board Considers Changes To Transportation Contract

Since Milford restored busing in January, our transportation system has flowed very smoothly. We are fortunate to have so many quality drivers who provide safe passage for our students. The current system, however, is costly, and we are exploring changes to save money.
- See more at: http://www.milfordschools.org/districtNewsArticle.aspx?artID=487#sthash.IJdoF3RO.AmLmlBoP.dpuf

What’s a community to do with the under-natured and under-nurtured demographic as low skill manufacturing work disappears?.”

Saturday, August 10, 2013

Residential Annexation and impact fees 8/11/13
Local annexation for residential development has been on hold for since the housing collapse 0f 07-08 and the DHL fiasco. As the economy improves we should take a look at the down side of restarting the practice without certain adjustments.
The basic question is: Should current residents of the city subsidize developer profits?
Every new street, every new student and every new demand on city services has a cost. New tax revenue may help pay for a teacher but not for a new classroom; a new sewer worker but not a new sewer plant; a new street worker but not a new snow plow. “In place” property owners and tax payer would have to pay a portion of the new costs without receiving any new benefits.

From Ohio State University community fact sheet.
Virtually all of the studies show that for residential land, the cost of community service (COCS) ratio is substantially above 1. That is, residential land is a net drain on local government budgets. The average estimate ranges from about 1.15 to 1.50, which means that for every dollar collected in taxes and non-tax revenue, between $1.15 and $1.50 gets returned in the form of services by the local government and school district.
Some local government and schools have turned to the imposition of fees paid by the developer and often passed on to the home buyer. These fees are called impact fees.
From the OSU fact sheet:
Development impact fees are one-time charges applied to offset the additional public-service costs of new development. They are usually applied at the time a building permit is issued and are dedicated to provision of additional services, such as water and sewer systems, roads, schools, libraries, and parks and recreation facilities, made necessary by the presence of new residents in the area. The funds collected cannot be used for operation, maintenance, repair, alteration, or replacement of existing capital facilities and cannot just be added to general revenue. They are essentially user fees levied in anticipation of use, expanding the capacity of existing services to handle additional demand. The amount of the fee must be clearly linked to the added service cost.

It's worth noting that industrial and commercial development have a positive effect on the COCS because the source of revenue is much higher per acre and the service needs are more concentrated as well.
Paul Hunter

Thursday, August 8, 2013

Annexation Update Reedited


Who Benefits? First published on 7/29/13

Wilmington City Council is being asked and will probably grant annexation to The McMahan's Mobile Home Park (MHP) on 134 South.
The Ohio EPA has condemned the parks sewer disposal system and they need to be in the city to use the city treatment plant. The park will be required to install the sewer line from Davids Dr. to their property.
Not only will McMahans receive sewer service they will also cut their present city water costs by 50% by being in the city............
Latest information.
  • Since 2004 the city has paid Union Township over $106,000 in compensation for annexed property. For the first three years after the air park was annexed the total was $82,000
  • Due to the annexation the cost of maintaining Airborne Rd. will be is transferred from the county to the city.
  • Land to be annexed and its tax payment.
City Reservoirs – tax exempt
Port Authority's east runway – 480 acres tax exempt
Port Authority Jenkins Rd. 135 acres $1,786
Port Authority Jenkins Rd. 35 acres $646
Port Authority Airborne Rd. 135 ares $2062
Wilmington College Jenkins Rd. 72 acres $2776
McMahan's MHP 73 acres $13,026
McMahan's MHP 107 acres $1,229

These taxes will change very little as a result of annexation.
The distribution of a small portion of tax money will be redirected.
At 8.35 mills the city will gain $3,700 and at 1.2 mills Union Twp. will lose $540.

The primary annexation applicant claims that time constraints require that the process must be rushed through because the EPA requires fast action on the sewer problem.
This blogger believes that haste make for a flawed and incomplete deliberative process by council. Because of this I asked the OEPA for their time line. Below is the response.

Mr. Hunter,
In response to request for more information about the McMahan’s Mobile Home Park in Clinton County, I wanted to share the following information with you.
McMahan’s mobile home park has a wastewater discharge permit that includes a compliance schedule for wastewater treatment improvements.  The compliance schedule requires a permit to install for wastewater improvements be submitted to Ohio EPA by February 1st , 2014.  Construction of these wastewater improvements and compliance with effluent limitations is required to be completed by February 1st, 2015.
Mr.Ware of this office would be able to provide you with more detailed information and he will be in the office on Tuesday, August 6th.  Should you require more information, his phone number is 937-285-6098.
Thank you for your request. I hope this information is useful to you.
Sincerely, Joe Miller Environmental Supervisor Ohio EPA



Monday, August 5, 2013

Jobs vs. Revenue Update


The Mayor's jobs project indicates slow but steady gain in new jobs. That's the good news. The bad news is that the jobs are of low quality and are failing to increase city revenue to even 2011's low levels.
A snapshot: Income tax revenue for the first seven months of 2013 fell $176,649 below the same period in 2011.
That decline equates to a $17,664,900 decline in taxable business and employee earnings.
Another way of viewing the decline is that it represents the decline represents 441 jobs paying $40,000 per year.
The closing of Staples will not help improve the data. On the other hand, the promised 259 good quality jobs at the Airpark next year would make a major dent in the shortfall.

Sunday, August 4, 2013

JobsOhio's Big Secret


Update 

Ohio jobless rate rises to 7.2 percent in June

In my opinion: Maybe “Jobs Ohio” is using its unaudited public funds to have IRS type wild parties rather than creating jobs. We won't ever know because of the JobsOhio amendment in SB 67 that prevent it from being publicly audited by the State Auditor


A chart from Pew Charitable Trusts that uses job data from the Bureau of Labor Statistics: shows Ohio ranked No. 46 out of all the states for job creation in the past year, beating only Wisconsin, Maine and Wyoming and tying with Alaska.

Between April 2012 and April this year, Ohio added 4,400 jobs — a 0.1-percent increase in the state's employment.

Friday, August 2, 2013

Good Use Of Crime Fighting Money?




Searching For A Product That Is Legal In Some States

How much does it cost? In my opinion it's better to spend the time and money looking for the hard stuff.


Highland County Sheriff's Office personnel, as well as personnel with the Bureau of Criminal Investigation, took to the skies Thursday in search of marijuana plants as part of an annual effort to eradicate marijuana growing in the area.

Thursday's search, part of anannual eradication effort in conjunction with BCI, began at about 9 a.m. and lasted throughout the afternoon and utilized sheriff's office aircraft and a BCI helicopter.
While BCI assists in marijuana eradication once a year, the sheriff's office conducts searches on a regular basis.
Paul Hunter pauhunter45177@gmail.com