The Hill Street Blahg

It’s interesting, not to mention frightening, to listen to the two Democratic anti-capitalist Presidential hopefuls play to the crowds in Ohio regarding NAFTA. It’s incredible how these two candidates can be so untruthful to the Ohio voters and do it with such conviction and authority. There are a multitude of reasons why the Ohio economy is in the tank along with Michigan, Pennsylvania, and the entire Rust Belt area, and NAFTA isn’t one of them. I’m not an economist, but one doesn’t have to be an economist to figure it out. The reasons Ohio and it’s fellow rust belt states aren’t benefiting from the new economy are as follows.

1. These states offer an unfriendly business climate.
2. These states have high corporate taxes.
3. These states have very high state consumer and personal income taxes.
4. These states are predominately Blue States.
5. These states have rejected all attempts at Right To Work legislation.
6. These states mandate Union membership which equates to inflated labor costs.
7. These states refuse to let go of the past and embrace the new economy.

Today’s Wall Street Journal calls the two candidates on the carpet with their tales of economic woe and their never ending tales of doom and gloom. Here is an excerpt from today’s op-ed titled Texas vs. Ohio.

So tomorrow the eyes of America will be on these two states moving in different directions. Ohio has an economy burdened by high taxes and work rules that impose heavy costs on employers. Texas embraces free trade, keeps taxes low, doesn’t impose unions on business and has tooled itself for 21st century global competition. Ohioans may not like to hear this, but for any company considering where to locate a new plant or move an existing one, the choice between Ohio and Texas isn’t even a close call.

The challenge for our national economy in a world of competition is to become more like Texas and less like Ohio.