Buckeye Economist Orphe Divounguy: Although Still Growing, Ohio’s Economy has Cooled DownJul 26, 2017
Columbus, OH – The Buckeye Institute’s lead economist Orphe Divounguy, Ph.D., commented on newly released data from the Bureau of Economic Analysis, that showed Ohio’s economy grew by 1.4 percent in the first quarter of 2017, compared to 1.9 percent for the rest of the region.
“Despite outperforming its neighbor states for the previous five quarters, Ohio’s economy seems to be cooling down. In light of the recent Ohio budget debate, reversing the Administration’s income tax cuts would have been detrimental to the state’s economy. This is because income tax cuts lift households’ disposable incomes, freeing up resources for higher investment and job creation. Fortunately, both Ohio Governor John Kasich, and the General Assembly have remained committed to reducing the tax burden on Ohio families and businesses.
“While Ohio had begun to adopt strong pro-growth tax policies, more must be done to ensure economic prosperity. Reforming the state’s labor policies, such as reducing the burden of occupational licensing on Ohio workers, will make the state more competitive, grow the labor force, and help keep Ohio ahead of the pack.
“Economic growth cannot return to its golden age as long as Ohio has tax rates and a regulatory framework that penalize job creation and cause people to leave the state as a result of fewer economic opportunities. It is past time to walk back burdensome regulations that increase hiring costs as well as policies, such as occupational licensing requirements, that block Ohioans from getting good paying jobs. Ohio needs policies that will stimulate capital investment and boost economic activity.”