Bad things happen when a single party is in control of all three branches of our government. That statement particularity applies to the state of the State of Ohio.
In an attempt to placate major big money contributors, the governor resurrected a failed economic policy first tried by the Reagan administration in the 1980s.
Supply side economics consists, in large part, of cutting taxes on the investor class in the expectation that economic growth will follow and tax revenue will grow. The father of the supply side or trickle-down theory, David Stockman, later in life admitted that the idea was a failure and that it contributed to the 2008 macro recession.
Gov. Kasich, not to be deterred by this history of failure and without meaningful opposition in the legislature, tried the system at the state level. The governor and a compliant legislature, including our Rosenberger and Peterson, cut taxes on the investor class and businesses promising great job growth and new revenue.
The result: A significant loss of tax revenue, poor job growth and a budget that is stretched thin. We can add to this sad tale of failure, increases in sales and property taxes and robbing local governments and schools of their share of taxes sent to the state.
There was no one with the power to say, “Hey! Wait a minute.”
As state after state has moved to incentivize renewable and alternate energy projects, our legislature has gone backwards and instead plan to place the added costs of inefficient coal plants to the consumer’s bill. Other legislative disincentives have slowed the progress job generating wind and solar power projects.
Who’s to say no that’s the wrong way to go? Certainly no one in the majority party will.
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