Morning Must Reads: Where Is the Shared Sacrifice?

When the economy is as weak as it is today, the prudent approach to the state budget is a balanced approach that looks to cut spending and raise additional revenue. A Patriot-News editorial this morning points out that nonprofit groups providing services to victims of domestic violence and rape, as well as people with severe health problems, have been particularly hard hit by the last several years of budget cutting.

Morning Must Reads: New Year, Same Old Economic Austerity

From November 2009 to November 2010, Pennsylvania added 63,300 jobs. From November 2010 to November 2011, the state added just 51,000.

Wait, isn't that backwards? Nope. A weak economy, the end of federal Recovery Act funds and state budget cuts slowed the pace of Pennsylvania job growth in the most recent year.

Morning Must Reads: Inequality of Opportunity in Politics and in Erie County

Thanks to the Occupy Movement, inequality has become a major issue in the Presidential campaign. While taking on the recent campaign developments, Paul Krugman does a nice job summing up what is wrong in America today.

Third and State This Week: Economic Mobility, Budgetary Freeze and Regulations

This week, we blogged about a $157 million midyear budgetary freeze, intergenerational mobility in the U.S. and false claims about the impact of regulations on jobs and the economy.


  • On income inequality, Mark Price blogged about a New York Times story this week providing fresh evidence that there is less intergenerational economic mobility in the U.S. than in Europe.
  • On the state budget, Sharon Ward wrote about a $157 million state spending freeze announced by the Corbett administration this week, marking the fifth straight year of cuts to health care, education and human services in Pennsylvania.
  • Responding to false claims about jobs and regulations, Stephen Herzenberg cited a former Reagan/Bush official who has written that “no hard evidence is offered” for the claim that new regulations are holding back investment and job creation:
  • In the Morning Must Reads, Mark Price highlighted news stories discussing the gender pay gap and a report linking Chesapeake Bay cleanup to job creation.
  • And finally, congratulation to Mark Price, named one of 2011's most influential voices in business by the Pittsburgh Post-Gazette

More blog posts next week. Keep us bookmarked and join the conversation!

A January Freeze

Governor Tom Corbett announced $157 million in state spending cuts this week to resolve a midyear revenue shortfall. This marks the fifth straight year of cuts to health care, education and human services.

More on Regulations and Jobs

On Wednesday, WITF’s Radio Smart Talk hosted two anti-regulation advocates to explain why regulations are, well, bad. The listeners of the show who called in did a good job underscoring the critical importance of effective regulation and exposing the lack of evidence for the views of the show’s guests.

I tried to call in myself, but time ran out before I could join the discussion. Had my call been taken, I would have pointed listeners to the writing of Bruce Bartlett, a former high-level policy person in the Reagan and Bush administrations. In a column tellingly entitled “Misrepresentations, Regulations, and Jobs,” Bartlett points out that “no hard evidence is offered” for the claim that new regulations are holding back investment and job creation: “it is simply asserted as self-evident and repeated endlessly throughout the conservative echo chamber.”

Morning Must Reads: Inequality Matters

A debate has been simmering in this country since the early 1980s about rising inequality, a debate aided by more powerful computers and readily available income data that labor economists use to analyze inequality trends.

The debate has oscillated between two camps — the first arguing inequality trends are troubling, the second arguing a combination of there is no rise in inequality and even if there were it is OK or even good (for the vitality of our economy, for example). The battle of ideas spurred new research using new datasets, but the debate always breaks down in the same way.

Another $157 Million in Cuts Could Be on the Way

Governor Tom Corbett announced nearly $157 million in state spending freezes today. They vary by department and program, but most agencies are facing a reduction of about 3%.

As we have written here, the combination of state budget cuts and the end of Recovery Act funding have translated into a wave of layoffs and property tax increases throughout Pennsylvania. This surely won't help.

In a statement, the Governor said that if the state's revenue picture improves in the months ahead, these funds could be unfrozen. Midway through the 2011-12 fiscal year, the state has a revenue gap of $487 million.

The Pennsylvania Budget and Policy Center has a quick rundown of the budgetary freezes by department and agency, with a link to a full listing of all freezes. We'll have more analysis of this and the state's revenue picture later in the week.

Morning Must Reads: The Gender Pay Gap

This morning, the Reading Eagle does a nice job summarizing Berks County and Pennsylvania data on the gender pay gap. One important note, a certain amount of differences in earnings can be explained by variation in what economists call productivity-related characteristics — things such as education and experience. When you make adjustments for this, the gender pay gap is somewhat smaller but still present and meaningful. The bottom line, the unadjusted gender pay gap data from the U.S. Census Bureau, which the Reading Eagle presents, remains a reasonable guide to the state of gender pay equity.

Most Influential

Mark Price forgot one in the Morning Must Reads today.

The Pittsburgh Post-Gazette on Sunday included Mark in a year-end list of the most influential voices in the world of business, shining a well-deserved spotlight on his work putting the economy in context for Pennsylvanians.

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