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Tuesday, November 5, 2024

Pennsylvania faces challenges with declining population, aging demographics

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State Rep. Mike Jones | Pennsylvania 93rd Legislative District

State Rep. Mike Jones | Pennsylvania 93rd Legislative District

May 20, 2024

Pennsylvania is undeniably unique, from its sports teams to its diverse landscape and its people. The state boasts a mix of values, skills, experiences, and talent that is unparalleled across the country. Despite its industrial potential, Pennsylvania's economic performance has been disappointing in recent years.

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 capitalized on this decline by attracting businesses, manufacturing plants, and the associated jobs and tax revenue away from Pennsylvania. The issue lies not with these neighboring states but with the policies and laws within Pennsylvania itself.

Geographically positioned as a connector between the Northeast, South, and Midwest regions of the United States, Pennsylvania should have a significant economic advantage. The state’s infrastructure includes three ports and numerous airports that facilitate both domestic and international travel. Additionally, Pennsylvania is a major energy producer; it exports more energy than any other state except Texas.

The state's human resources are also noteworthy. Pennsylvania has long produced innovators trained in prestigious schools and colleges. Agriculture remains the state's top industry due to favorable climate conditions for growing staples like corn, wheat, soybeans, and timber. Historically rich in manufacturing pedigree—evident from initiatives like the "York Plan" during World War II—the state seems to be squandering its potential for growth.

Over the past decade, Pennsylvania has lost over a quarter million residents; just in the last two years alone, it has seen a decrease of 50,000 people. According to ALEC's domestic migration index (2013-22), Pennsylvania ranks 46th out of 50 states. This population decline resulted in reduced political influence following congressional redistricting after 2022.

The demographic shift towards an older population further complicates matters. A Population Reference Bureau index from 2021 indicated that seniors constitute about 20% of Pennsylvania’s total population. While retirees contribute significantly to communities in various ways, they are not typically involved in revitalizing economies or filling job shortages.

Younger wage earners leaving for better opportunities elsewhere exacerbate economic challenges. Census Bureau data from 2022 revealed that median household income dipped significantly in several states including Pennsylvania. Between 2021 and 2022, real personal income in Pennsylvania dropped by 5.8%, one of the highest declines nationally.

Economic performance metrics such as Gross Domestic Product (GDP) growth place Pennsylvania at 35th over the last decade—a statistic indicating cumulative wealth loss more than any other figure.

To reverse these trends, Representatives Joe D’Orsie (47th District) and Mike Jones (93rd District) argue for reducing government intervention rather than increasing it. They advocate allowing businesses and families more autonomy over their finances and time as a means to stimulate competition and prosperity within the state.

"We’re hopeful for a prosperous Pennsylvania," they stated while emphasizing that "the solution to our economic woes isn’t more government; it’s less government."

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