Yesterday's announcement that GDP grew by a meager 1.3 percent from April through June is just one more sign that the big-spending policies put forth by many in Washington are actually harming, not helping, our struggling economy. The anemic growth we experienced in the second quarter follows the 1.9 percent rate we saw in the first part of this year.
Economists agree that a healthy economy grows at a rate of 3 percent or higher. These numbers are well below that and they clearly show we are headed in the wrong direction.
Backsliding further into a sustained economic decline is not what Ohioans expect or deserve. The big spenders in Washington can continue to promise that the economy will turn around if we just tax, spend or regulate a little bit more. But the proof is in the pudding, and clearly that dish spoiled quite some time ago.
The fact is businesses plan for the future, and both future regulations and future tax rates factor heavily into any business' budget. If they do not know what their costs are going to be they have to assume the worst: that any capital they have will need to be used to pay for something they cannot yet see.
If they are holding onto capital, they can't use it to buy new equipment, expand their business or hire new employees. They can't use it to advertise their goods or branch out into new markets.
We must reduce the regulatory burden businesses face if we want to make it easier for them to hire and expand. We also must give those same businesses some certainty and predictability as to what their tax rates will be. Only then will they begin to reinvest in their businesses and hire again. And only then will we move past 1.3 percent economic growth rates.