Friday, August 22, 2014

Tom Corbett - Massive Supporter of Education

By Greg Harvey, Treasurer



Needless to say, Governor Corbett is regularly subject to unnecessary criticism. Of all the topics his opponents blast him for, none is more absurd than that of his education performance. With the election coming this year, Democratic candidate Tom Wolf has released a number of campaign ads claiming that Corbett is anti-education; he states (often) that Corbett cut spending for education and has subsequently harmed our schools. However, Wolf’s ads are blatantly wrong, as an overview of actual data shows. 

We’ll start with the main issue: Pennsylvania’s educational spending. Wolf claims that Corbett cut over $1 billion for education, but the Commonwealth Foundation finds this false. While there was a large decrease initially during Corbett’s term, it was not due to his administration. Rather, the $1 billion “cut” was from the expiring of temporary federal stimulus funds. In other words, the decrease in funding was solely due to the federal government ending a stimulus program that was designed to have a limited life, not from state actions. Obviously, it makes little sense to blame a state governor for the actions of the federal government.

On the state end, Corbett has helped to increase state funding for education more that any Pennsylvania governor ever. Looking at the state’s budgets from the Governor’s Budget Office, Corbett has increased the amount of money the Commonwealth of Pennsylvania gives for education purposes every year he’s been in office. Again: he has not cut any state funding for schools. Instead, according to a Yahoo News article, the amount allocated for education in the 2014-2015 budget once again breaks the state’s record for funding with $12 billion budgeted. Fascinatingly, the last two times the record was in 2012 and in 2013, both under Governor Corbett. Clearly, saying this administration hasn’t adequately funded schools doesn’t seem to match up with facts.

That being said, it is true that public schools are struggling financially, but the causes for these troubles are much more complicated. Pennsylvania is currently undergoing a pension crisis for its public school teachers, with $50 billion in pension debt that school districts across the state are struggling to budget for and pay, according to the Washington Examiner. These underfunded pension plans, more than anything else, constitute the reason for our schools’ budget woes and, ultimately, why property taxes continue to rise. The multitude of this debt is too large to fix simply by allocating more money to it from the general budget, as Corbett’s opponents tend to claim. Rather, PennLive reports that Corbett has advocated the best possible solution: shifting teachers’ retirement plans from pension-based to a 401(k) style. Such a shift would save school districts up to $13 billion and be enough to fund the debt. While the plan was struck down in the Pennsylvania Congress earlier this year, Corbett has vowed to continue pressing for it.

In conclusion, Governor Corbett has done everything he can do to keep Pennsylvania’s education top notch, and his opponents’ arguments are not based on fact. Pennsylvania has never spent as much on education as it has under the current administration. The only “cuts” to education were due to the discontinuation of federal stimulus money, which is far outside any governor’s control. Finally, the real causes for the state’s educational budget troubles were from improper retirement planning for more than a decade, and Corbett’s plan would adequately solve the problem. In short, Corbett has proven to be completely pro-education regardless of what Tom Wolf says, and, as a college student, I could not be more thankful for his support.

Thursday, August 21, 2014

Tom Corbett - A Jobs Producing Governor

By Greg Harvey, Treasurer



When normal non-economists like us discuss the economy, we talk about jobs- the unemployment rate, whether companies are hiring or firing, etc. Sure, we may mention GDP or the trade balance, but the jobs report is the only tangible measure by which we can actually gauge economic performance. And this focus on jobs is not unwise, as many other economic measurements (such as those previously mentioned) are affected by the health of the labor force. Such a focus on jobs leads to the conclusion that Pennsylvania under Governor Tom Corbett is in a promising position as supported by the data explained in this post.

When Corbett came into office in 2011, the nation was still struggling from the 2008 crash. Though the Great Recession had ended (on paper) in June, 2009, the economy was in a period of economic stagnation, with unemployment stuck at around 9%. Pennsylvania was in a relatively better position at roughly 8% unemployment, but it was far from optimum. Something had to be done.

Once in office, Corbett began a series of business friendly policies which, as will be discussed later, have succeeded in boosting Pennsylvanian job creation. Perhaps most notably, he promoted natural gas drilling; the effects of which were written about by the Bureau of Labor Statistics. Basically, largely because of Corbett’s support, Pennsylvania has become the second largest natural gas drilling state in terms of employment. Other states in the Marcellus Shale generally have less friendly business policies, like New York which bans fracking outright, and have not come even remotely close to matching Pennsylvania’s success. And these jobs, whose average pay of $83,000 easily beat the state’s median pay of $52,267, help to support many other PA industries, according to a Penn State study. Essentially, we can assume that many job gains in other industries since the drilling boom began were caused by Corbett’s adoption of natural gas drilling.

Even though the natural gas industry has been Corbett’s greatest economic success, he has done much more to make Pennsylvania a business friendly state. He’s introduced budgets that would end the simultaneous taxation of business income and business assets, reduce the state corporate tax rate (PA’s rate being the highest in the nation), and allow start-up business tax deductions to aid new businesses, among other positive plans.

Obviously, this would all be for naught if success didn’t follow. Thankfully, Corbett’s plans are working. In June, 2014, Pennsylvania’s unemployment rate dropped to 5.6%, well below the national average of 6.1% and even further from the 8.1% rate Corbett began with. And, considering that Corbett oversaw a decrease of 55,000 government positions, it’s clear that the private sector, easily the most important aspect of the economy, has done very well during Corbett’s term.

However, as with most of Corbett’s accomplishments, there is some ridicule of his performance.  Critics tend to point to PA’s 47th ranking of job creation in percent since 2011. However, as George Washington University economist Tara Sinclair points out, it’s expected that Pennsylvania’s job growth would be lower than other states because PA was hurt less during the Great Recession compared to the rest of the country. In other words, while other states may gain a larger percentage of growth, it’s merely to replace what they lost, and PA simply has less to replace.

Overall, the job market has made tremendous strides under Governor Tom Corbett. His adoption of business friendly policies, including natural gas companies, has put Pennsylvania in a much better position than when he took over in 2011. However, as is typical nationwide, our economy is not out of the woods yet. Therefore, we need Corbett, because no other candidate will embrace business and subsequently foster job creation like our governor has.

Friday, March 28, 2014

Communicative Weakness and Democratic Unwillingness

by Andrea Rhodomoyer and Pajtim Sylaj, Secretary
Published in The Voice on March 27, 2014
A response to a semi-literate rambling on blaming the GOP for being responsible for all partisanship




On October 1, 2013, the United States government experienced a partial shutdown. However, if there is any making sense of the shutdown, it is unquestionably crucial to understand and recognize a timeline of the events that took place before and after. Mr. Catona shared his views as to why he believes that the Republicans were the direct cause of the shutdown. This article clarifies that an indifference between two parties is needed for a disagreement to transpire, and how the stubbornness of the Democrats lead to an unwillingness of negotiation.

On September 20, 2013, the Republican Party agreed to keep the government funded through December 15, 2013 as long as President Barack Obama agreed to defund the 2010 Affordable Care Act, otherwise referred to as Obamacare, which has been delayed numerous times by the president himself.  Four days later, Sen. Ted Cruz delivers a filibuster- like speech encouraging a governmental shutdown unless the Democrats make the delineated negotiations and compromises on the health care law. Through September 27 to September 30, the Democratic-led Senate rejects any provisions made by the GOP, one of those provisions being that the president and his congressional staff be required to pay unsubsidized healthcare expenses. As a result, the shutdown ensues.

After the commencement of the partial government shutdown, the Republican-led house began approving bills as an effort to revive prevalent government programs, including national parks and museums, National Institute of Health medicinal study, the Federal Emergency Management Agency, the Food and Drug Administration, and Head Start. The Democratic-led Senate and the president, however, either ignore or reject the Republican attempts, giving them more incentive and motivation to prolong the shutdown. After much discussion of debt limit extensions and disagreements between House GOP leaders and the president, it isn’t until October 16 that the Senate Majority and Minority leaders announced that they came to a decision to momentarily end the government shutdown until January 15, 2014 and extend the debt limit until February 7, 2014. The proposal passes through both the House and Senate and is signed into law by President Obama just after midnight on October 17 (mediate.com).

Health care improvement from the Republican mindset exhibits the support of commonsensical reforms that will lower costs for the American people, certify the utmost quality in health care that the people deserve, and end to lawsuit exploitation. The Republican Party is in strict opposition of government-run health care that compromises that physician-patient relationship, hinders the promotion of competition, and staggers healthcare quality and variation of choice. In the past, as polling has demonstrated, the American people are in disfavor of such a health care policy developed by President Obama, due to the common belief that the ACA will drive up costs and hurt the quality of health care (gop.com). Eighty-five percent of GOP voters and sixty-eight percent of unaffiliated voters expect health care costs to increase under the new law. This view is also shared with thirty percent of Democrat voters (rasmussenreports.com).

Even though Gun Control is irrelevant to the cause of the government shutdown, background checks for purchases of weapons do exist. Over ninety percent of U.S. citizens support background checks, however, a much smaller amount support stricter gun control, such as high-capacity magazines and semi-automatic rifles (NRA).   

This isn’t the first or last time the two political parties disagree. There is a greater challenge for these parties to come to a neutral agreement when the president refuses to negotiate and bypasses congress to pass a law that many are not in favor of. In our past, a Democratic president has successfully negotiated with congress and the Republicans, just as a Republican president with Democrats. It is not about how many bills are passed, but rather the quality and how effective these bills are to the nation as a whole.