Here’s what Governor Kasich sent via his official gubernatorial twitter account last week as President Obama came to Ohio to announce the recess appointment of former Ohio Attorney General Richard Cordray to the Consumer Financial Protection Agency and to discuss the economy in general:
First, Kasich is required by the Ohio’s constitution to have the budget balanced, and he had the benefit of his predecessor, Governor Ted Strickland, leaving Kasich a nearly billion SURPLUS in his last budget. Obama’s predecessor? Not so much.
Second, Kasich hasn’t cut taxes, at least not yet. Kasich kept income tax cuts that Strickland put into place before he left office. He’s passed an estate tax repeal, but that doesn’t take effect until June 2013 because Kasich couldn’t figure out a way to balance the state’s budget if he did it sooner.
Still, compared to Obama, Kasich is a tax lover. People seem to forget that a sizeable chunk of the stimulus was an income tax cut for 95% of Americans.
From the White House:
With that same piece of legislation, he created the American Opportunity Tax Credit — which is currently helping more than 9 million families afford the cost of college.
The Recovery Act also lowered the threshold for refunds through the Child Tax Credit — providing a tax cut to 11.8 million working families.
The President also expanded the Earned Income Tax Credit for families with three or more children — giving them a tax cut of up to $640 this year.
President Obama has passed tax cuts for small businesses 17 times. These measures range from allowing corporation to expense 100 percent of their new investments until the end of 2011 to creating a new deduction for health care costs for the self-employed.
And just this week, the President also signed legislation to create tax credits for businesses that hire veterans.
In fact, Obama has passed and enacted tax cuts for virtually every taxpayer in the country. Kasich? Not so much. Income taxes are the same as under Ted Strickland (an achievement that Kasich somehow manages to brag about as some kind of achievement).
And job creation? LOL… really Governor, do you really want to go there?
The United States created 1.9 million new private jobs in 2011. In fact, two days after Kasich’s Twitter boast, the U.S. Department of Labor announced that the nation gained 200,000 jobs in December alone. The nation is on a fifteen-month streak of job creation. And there are slightly more Americans in the labor market than a year ago. The nation’s unemployment rate dropped as 200k new jobs were created, but 50k Americans dropped out of the labor market altogether.
While it’s not good to see a drop fueled, in part, by a drop in the labor market. With Obama in December, there were four times as many unemployed people becoming employed with new jobs for every unemployed worker dropping out of the labor market altogether. For the last month in which we have Ohio state data (November), the unemployment rate dip was fueled by a ratio of more than 3 Ohioans dropping out of the labor market for every new job created.
From November 2010 to November 2011, according to Governor Kasich’s own Ohio Department of Jobs and Family Services, 67,000 Americans dropped out of the labor market. During that same time period, 61,000 Ohioans dropped out of the labor market. Yes, you read that right. Ohio constituted 91% of the nation’s drop in the labor market population over the past twelve months.
We’ve spoken at considerable length at how important it is to consider changes in the labor market population in order to put changes in the unemployment rate into context.
How does Ohio measure up to changes nationally in the labor market? Not well.
Here’s the national labor market over 2011
And here’s Ohio:
So, although both Ohio and the nation have roughly seen roughly the same drop in the unemployment rate of the year, Ohio’s has been fueled more by Ohioans dropping out of the labor market while the nation has a modest increase in the labor market.
The difference means that 96% of the drop nationally of the number of unemployed Americans is due to Americans finding work; in Ohio, only 13% of the decrease in the number of unemployed Ohioans is the result of job growth. Obama is kicking Kasich’s arse in job creation.
Don’t take my word for it, look no further than the most recent report on the economy from John Kasich’s budget director:
Yep, they’re bragging that they’re keeping pace with the nation… but, wait, there’s more! While acknowledging that nationally economic growth was accelerating:
In other words, what we’ve been saying all along. That for all of Kasich’s job creation boasting, most of the growth occurred before Kasich could by any stretch of the imagination claim any credit. In 2010, Ohio was outpacing the nation in improvement in the economy. In 2011, it barely kept pace. What this warns is there is a serious risk that Ohio might fall behind the rest of the nation. Those aren’t my words but the words of Kasich’s own budget director.
The same budget director who predicted that the Kasich budget cuts would be a drag on the Ohio economy back in March of last year:
Which, again, the OBM notes has proven true:
In other words, federal spending under Obama has had a positive impact on real GDP growth while reductions in state spending has been a drag on the economy. In other words, everything that you say about the economy, Governor, is wrong.
Never before has an Ohio governor acted so immaturely to the President of the United States as Kasich has done. Seriously, Kasich’s “statement” to the President is beneath the dignity of the office he holds and is more in line of what you expect in Internet comments on newspaper sites or stupid listener call-ins on conservative talk radio.
But more than just the sheer immaturity of Kasich’s statement, never has an Ohio Governor demanded so much credit for achieving that which deserved so little praise. In comparison of their records, allow me to sum up President Obama’s response thusly:
John Kasich, you’re just an annoying partisan fly. Next…
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