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Study says stimulus bad for economy

Research group claims up to 91,000 jobs could be lost due to government spending.

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By Marie Rossiter, Staff Writer Updated 5:33 PM Monday, May 4, 2009

LEBANON — Federal stimulus funds remained a hot issue in Warren County Monday, May 4, as an Ohio-based research group claimed the money would ultimately harm the economy.

The Buckeye Institute for Public Policy Solutions unveiled a study which estimates between 66,400 and 91,200 potential jobs will be loss if the federal government continues to spend stimulus money. The organization released its findings in Warren County because of the commissioners’ recent stand against spending stimulus funds.

“The inconvenient truth is federal money isn’t free,” said David Hansen, president of Buckeye Institute for Public Policy Solutions, one of the sponsors of the study. “It’s a trap set on taxpayers who will bear the burden after federal funds run out.”

Hansen said the money is not for one-time projects but for new or expanded government programs, such as unemployment insurance. Once this federal money runs out, state and local governments will be forced to pay for these programs, according to the study.

The study, done in cooperation with Washington, D.C. research firm Arduin, Laffer & Moore Econometrics, claims the amount of government spending affects the private business growth.

“While Gov. Strickland has been a very visible cheerleader for this federal stimulus package, his efforts will cost Ohio jobs and further worsen our economy’s woes,” Hansen said.

Hansen said Buckeye Institutes’ non-partisan mission is “individual liberty, economic freedom, personal responsibility and limited government in Ohio.” The group wants to eliminate state income tax and compulsory unionization and adopt a universal school voucher program.

“We need a reality check,” Hansen said. “The government does not create money, it redistributes it.”

Last week, Warren County’s rejection of stimulus money for its transit system became a national debate.

Warren County commissioner Mike Kilburn said he would rather have the money go to pay down the national debt.

“I was critical of Bush when he supported the bank bailout and the fact he didn’t veto a single budget,” said Kilburn, a staunch conservative. “The fact is, Obama is the man now. I’m singling out actions and fiscal policy that will run this country off a cliff.”

Opponents of the county’s stimulus fund policy questioned the research group’s “non-partisan” claim.

“It was a dog and pony show in the guise of a study,” said Martha Paige, of the Warren County Democratic Party. “I hope the commissioners will provide a forum for other opinions before making future decisions on spending stimulus money.”

Contact this reporter at (513) 696-4542 or mrossiter@coxohio.com.

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