OHIO — Primary elections spur the giving of millions in campaign funds across the country and in Ohio, but experts say the impact on the economy may not be as great as one may think.
What You Need To Know
- There wasn’t a lot of economic impact from the primary season, but the money coming in does shift economic activity from one place to another
- A large amount of money could be poured into the state during upcoming general election for senatorial candidates and any other competitive races
- Financial experts believe politicians get too much credit and too much blame for the economic and market impact
Jason Jackman, CEO of Johnson Investment Counsel noted, while the flow of money into campaigns during primary elections and the spending of those funds doesn’t really impact the state’s economy, the reverse may be true for the general election.
“Ohio might become ground zero for control of the Senate when you think about it. So when you look at the Sherrod Brown, Bernie Moreno race, we might see a ton of outside money flow in. If any of these Senate or House races get competitive, we’re likely to see a lot of outside money move in, which could provide a modest boost to the Ohio economy,” Jackman said.
Jackman also noted that typical campaign contributions from individuals run around $100. Those amounts are what Jackman calls substitution spending. “It doesn’t increase the Ohio economic pie. It just moves economic activity from one bucket to another.”
While the general election is still months away, previous elections put a positive spin on the future of Ohio’s economy.
“There’s broad bipartisan support, and support from both administrations for a lot of the policies that are positively impacting Ohio. It’s those policies that stimulate investment in domestic supply chains in the manufacturing ecosystem of Ohio. Politicians get too much credit and too much blame for the economic and market impact,” said Jackman.