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Friday, September 20, 2024

Pennsylvania's economic decline: An analysis by state representatives

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State Rep. Joseph D'Orsie | Pennsylvania 47th Legislative District

State Rep. Joseph D'Orsie | Pennsylvania 47th Legislative District

Pennsylvania is undeniably unique, with a diverse landscape, sports teams, and an impressive mix of people that combine values, skills, experiences, and talent unlike any other state. The industrial potential of Pennsylvania should be enticing to investors and entrepreneurs. However, in recent years this potential has been largely unrealized. According to the American Legislative Exchange Council’s (ALEC) state economic competitiveness index, Pennsylvania ranks 35th in economic outlook and 46th in economic performance.

Neighboring states have observed the decline of our once mighty state and have begun to attract businesses, manufacturing plants, along with the jobs and tax revenue they generate. This shift away from Pennsylvania can be attributed to policies and laws that are driving them away. Mere slogans such as “we’re open for business” and “competitive as hell” are insufficient. Success requires more than just catchy phrases.

Despite its advantageous geography – connecting the population-rich Northeast to the South and Midwest – Pennsylvania is lagging economically. With three ports, numerous airports, abundant natural resources including energy exports second only to Texas, world-class educational institutions producing innovators and creators, a leading agriculture industry powered by a favorable climate for growing staples like corn, wheat, soybeans and timber; Pennsylvania should be thriving instead of squandering these assets.

Over the last decade, Pennsylvania has lost over a quarter million residents with a decrease of 50,000 people in just the last two years alone. According to ALEC's economic analysis from 2013-22), Pennsylvania ranks 46th out of 50 states in domestic migration index. This trend continues without any apparent plan for reversal.

In addition to losing population, Pennsylvania is also aging rapidly. Despite exporting younger citizens to states friendlier towards businesses and families while importing retirees; we rank near the top nationally in proportion of residents aged 65 or older according to various sources.

The Census Bureau data from 2022 showed that Pennsylvania was among 17 states that experienced significant dips in median household income. Additionally, between 2021 and 2022, the state saw a 5.8% dip in real personal income, one of the highest losses in the country. Pennsylvania also ranks low for cumulative Gross Domestic Product (GDP) growth over the last decade at 35th.

Pennsylvania's current state of decline is not inevitable. To reverse this trend, we must view government as a hindrance to competition rather than a solution. We need to allow businesses and families to flourish with more of their own resources and time, instead of employing government agencies to micromanage Pennsylvanians' affairs. The solution to our economic woes isn’t more government; it’s less government.

Representative Joe D’Orsie, 47th District

Representative Mike Jones, 93rd District

Pennsylvania House of Representatives

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