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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
DECEMBER 8, 2009 | Commentary by ABHILASH SAMUEL
Outward Bound - Taxes Driving People Out Of Pennsylvania
Between 2000 and 2008, Pennsylvania suffered the depletion of one of its most valuable resources - people. During this period, the state lost 56,000 net residents, according to U.S. Census Bureau data, ranking 11th in migration loss among all states. In the decade prior, Pennsylvania lost over 250,000 net residents to interstate migration - rank
Recent Blog Posts
MARCH 1, 2010
Marcellus Shale Powering Job Growth
TMK-IPSCO, an oil-and-gas pipe maker, recently announced its plan to build a new manufacturing facility roughly 60 miles northwest of Pittsburgh, just over the Ohio state line. The new facility will bring an estimated 120 jobs to the area, while also providing the piping used by natural gas drillers here in the Marcellus Formation.
Due to the rapid growth in natural gas extraction, companies like TMK are quickly moving to the area to meet demand, spurring job growth in regions once considered economically stagnant. By keeping Pennsylvania's tax structure business-friendly and by keeping regulations on the extraction of gas to a minimum, more companies like TMK are sure to follow.
posted by MICHAEL NEROZZI | 08:12 AM | 0 comment
FEBRUARY 24, 2010
Pennsylvania Bottom-of-the Pack in State Competitiveness
A recent report by the Beacon Hill Institute, a free-market think-tank out of Suffolk University in Massachusetts, provided even more dismal news on Pennsylvania's economic climate.
According to the study, Pennsylvania is ranked 39th out of the 50 states in economic competitiveness, citing high taxes, high crime rates and other factors for it's less-than-desirable ranking. Given the burden our state continues to place on our families and small business by way of both personal income tax and business taxes, our low ranking is not surprising.
Until we can provide a economic climate that can allow small business to flourish and reduce the onerous levels of taxation on our citizens, Pennsylvania will continue to miss out on opportunities for real growth.
For a complete version of the BHI study click here
posted by MICHAEL NEROZZI | 09:52 AM | 0 comment
FEBRUARY 22, 2010
Did the Stimulus Raise Unemployment?
Alan Reynolds takes a nuanced approach to where stimulus funding went, and why it didn't "create jobs" or increase GDP, and probably increased unemployment:
[T]he GDP report clearly said the gain "reflected an increase in private inventory investment, a deceleration of imports and an upturn in nonresidential, fixed investment that was partly offset by decelerations in federal government (defense) spending and in personal consumption expenditures."
Since federal spending accounted for exactly zero of the only significant increase GDP, how could such spending possibly have "created or saved" 2 million jobs?
The bill was launched last year amid grandiose promises of "shovel ready" make-work projects.
In reality, as the CBO explains, "five programs accounted for more than 80% of the outlays from ARRA in 2009: Medicaid, unemployment compensation, Social Security ... grants to state and local governments ... and student aid."
In other words, what was labeled a "stimulus" bill was actually a stimulus to government transfer payments — cash and benefits that are primarily rewards for not working, or at least not working too hard.
In 2010, as in 2009, the ARRA is mainly a stimulus to government. ..
My own estimate, in past articles available at cato.org, is that the stimulus act added about 2 percentage points to the unemployment rate.
Andrew Cline also has a good piece on the logic of the stimulus and "job creation"
The question is not: How many jobs were funded by the stimulus bill? The question is: How many jobs would have been funded if that same money had been put to other uses? The American people seem to think, not unreasonably, that more jobs would have been created without the stimulus bill than with it.
posted by NATHAN BENEFIELD | 09:36 AM | 0 comment
