Ohio economic suicide

Cleaning up a few older pieces.

Here is a great piece on Ohio's economic suicide.....

Once known as the Mother of Presidents, Ohio is now getting poorer, older and dumber – and making all the wrong moves to reverse the situation.

And that may actually be a plus for Barack Obama. His party is finding that lofty, vague promises of change combined with high-spending, high-tax, welfare state-ish policies are a political winner in the state. How else to explain why Gov. Ted Strickland's approval ratings are in the mid-50s or why Democrats may even win control of the state House for the first time in 14 years?

AP

Gov. Ted Strickland

But as a formula for economic revival, it is madness. Ohio already has the fifth-heaviest state and local tax burden in the country (up from 30th in 1990) and finds itself stagnating. Its unemployment rate, 6.3%, is above the national rate of 5.5%, even as the state's work force shrinks as people emigrate. Ohio's median household income is also falling – in 2006 it was $44,500, down 0.5% from the previous year – while the national figure ($48,500) was up 1.6%. During the closing decades of the 20th century, incomes rose twice as fast across the country as in Ohio.

The state has been deindustrializing for ages – the sprawling General Motors and NCR plants of my Dayton childhood are long gone. Every metropolitan area has seen manufacturing employment plunge. The state lost more than 200,000 nonfarm jobs over the past seven years alone. Of Ohio's 10 largest corporations (including Procter & Gamble and other well known companies), just two have posted positive returns so far this year. A surefire way to have one's portfolio underperform the market these days is to invest in Ohio.