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FEBRUARY 17, 2010 | Commentary by ELIZABETH BRYAN
The True Cost of Unemployment Compensation
Pennsylvania's unemployment compensation fund is bankrupt. Beginning in March 2009, the Keystone State borrowed over $2 billion from the federal government to keep it solvent. Unfortunately, unemployment continues to grow, making a bad situation worse. Since December 2007, Pennsylvania has lost more than 200,000 jobs. It is imperative tha
DECEMBER 16, 2009 | Commentary by KATRINA CURRIE
Five Threats to Pennsylvania's Prosperity
Pennsylvania has long been one of the most economically stagnant states in the nation. For the period 1991-2008, the Commonwealth ranked 45th in job growth, 46th in personal income growth, and 47th in population growth. Pennsylvania has also faired poorly in independent evaluations of states' business climates, i
SEPTEMBER 29, 2009 | Commentary by JAKE HAULK, MATTHEW BROUILLETTE
Torts, Taxes Hinder Pennsylvania's Prosperity
Wrongheaded economic development policies and one of the nation's worst labor climates are serious impediments to Pennsylvania's prosperity. As if those obstacles were not enough, the commonwealth also has saddled itself with a tort system that deters job and income growth and a collection of taxes on business that puts the state at a se
Recent Blog Posts
MARCH 10, 2010
Grading Corbett's Economic Plan: FAIL
Pennsylvania governor candidate Tom Corbett and his campaign team unveiled the first of seven policy outlines on economic development.
Much of what it outlines is simply political rhetoric - i.e. praising energy resources, transportation and water infrastructure, agriculture, manufacturing, and innovation - but when it outlines specific policy proposals, it's just more of the same.
The Corbett plan includes:
- Spending taxpayer money on building broadband internet, copying the federal "stimulus"
- "Discovered in PA - Developed in PA" - a new program for universities and businesses to partner - presumably with taxpayer subsidy - on new technologies
- More tax incentives and state spending on venture capital - because, naturally, if private investors don't think something is a good risk, government will make better decisions using other people's money
- Loans and "seed money" for new businesses
- Grants and incentives for investors
- Getting more out of the Governor's Action Team, one of Rendell's favorite tools to pick favored companies for corporate welfare
- More programs to create green jobs
Rather than a new direction, Corbett offers nothing more than the same failed mistakes of the past. In fact, his corporate welfare package sounds a lot like that of Democrat candidate Dan Onorato, not to mention the policies of Rendell and Bush-Obama.
This is not our path to prosperity. For some positive ideas, check out Six Opportunities for Pennsylvania.
More from CF on Corporate Welfare.
posted by NATHAN BENEFIELD | 04:17 PM | 0 comment
MARCH 10, 2010
Is Minimum Wage the Panacea or the Disease
A new report by the Bureau of Business Research at Ball State University found that the recent minimum wage increases account for 550,000 fewer part-time jobs. According to the analysis of Bureau of Labor Statistics data, most these losses are among workers between the age of 16 and 19. (HT: Americans for Tax Reform)
The minimum wage hike during a downturn had a significant impact, especially on part-time workers, because it as business could no longer afford the additional costs. As a result, jobs losses among younger workers were especially pronounced.
Federal and state governments legislate minimum wage to help the poor and unskilled. Yet, studies and consensus among economists have found that minimum wage laws have a negative effect on employment. Indeed countless studies of minimum wage laws have found that they reduce employment, primarily among the low-skill workers and disproportionately affect the young.
posted by ABHILASH SAMUEL | 10:38 AM | 0 comment
MARCH 5, 2010
Yes, Unemployment Benefits Do Cause Higher Unemployment
David Henderson has a post up on the Econlog blog about how unemployment benefits increase the unemployment rate. He cites himself, the Federal Reserve, and Obama economic advisor Larry Summers.
Elizabeth Bryan touched on this economic effect in a recent CF commentary, but as the commenters note, it's just because she's cold and heartless.
posted by NATHAN BENEFIELD | 02:39 PM | 0 comment
