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Report Backs Leaders Who Reject Stimulus Money

Reported by: Deb Silverman
Email: dsilverman@wcpo.com
Last Update: 5/04 9:43 pm
Local leaders who are saying “no” to stimulus money are getting support. This is stirring up a local debate.

The Buckeye Institute for Public Policy Solutions released a report Monday morning.

The Ohio group that supports less government concluded that stimulus money "will actually worsen the economy's performance."

David Hansen, president of the Buckeye Institute, said, "When government's creating jobs, sure there will be jobs at a particular project, but those jobs will come from jobs lost someplace else.”

"Government can only take money that it's taken from us," said Hansen.

"Sometimes it can borrow money from the future. It does that a lot at the federal level that just means that our children and grandchildren are going to have less bright futures and fewer jobs then," he said.

Miami University economics professor Bill Craighead does not agree with the Buckeye Institute's findings. He said this recession calls for government spending.

"A more minor recession, maybe it wouldn't be necessary to go to that, but given the potential of the severity of this, having the government step in with a stimulus package makes sense," said Craighead.

He said the federal money allows the states to create jobs instead of being forced to slash jobs because there's no money.

The Buckeye report comes not long after Warren County Commissioners refused $373,000 in federal stimulus money to upgrade their transit system.

Liberty Township trustees in Butler County refused to apply for $6 million in stimulus money to build a new fire house and public safety building.

Craighead said, "It's unfortunate this has turned into such a political, ideological debate because it's not really a question of what is the ultimate role of government in society. It's whether we can use this tool right now to get us out of this difficult circumstance."

Craighead said like it or not, communities should be taking the stimulus money because he said it will just go to another community.


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