Minimum Wage

Third and State This Week: Few in PA Get Top Tax Cuts, Single Bid for PA Lottery, Minimum Wage Boost & Latest on PA Jobs

Note: Third and State is taking a well-deserved break from December 23, 2012 through the end of the year. We will be back in action January 2, 2013. See you then.

This week at Third and State, we blogged about new analyses finding that few Pennsylvanians would benefit from extending tax cuts for high-income earners and that questions remain about the plan to privatize the Pennsylvania Lottery. Plus, a look at the 10 states that will give minimum wage workers a raise in the New Year and the latest Pennsylvania jobs report.


  • On federal taxes, Sharon Ward shared a new analysis from the Pennsylvania Budget and Policy Center finding that President Obama’s plan to end federal tax cuts for high-income earners would have very little impact on taxpayers in most Pennsylvania counties.
  • On privatization, Stephen Herzenberg observed that "one is the loneliest number" especially when it comes to the number of bids received by the commonwealth to privatize the operations of the Pennsylvania Lottery. Steve's post highlights the findings of a recent Keystone Research Center policy brief on the lottery plan.
  • On jobs and the economy, Mark Price wrote that the decline in Pennsylvania's unemployment rate in November is a welcome change, but that the jobless rate remains unchanged from a year ago at 7.8%.
  • On wages, Jamar Thrasher blogged about 10 states (none of which are called Pennsylvania) that will increase their minimum wage rates in the New Year.
  • Finally, Chris Lilienthal shared charts from the Center on Budget and Policy Priorities here and here providing some perspective in the debate over extending the Bush tax cuts.


  • The Pennsylvania Budget and Policy Center issued a statement saying that a new U.S. Chamber of Commerce/IHS report on Pennsylvania's energy future makes inflated claims about gas drilling's impact on job growth and tax revenue, while ignoring the costs that drilling imposes on citizens, the environment, and communities.

A Minimum Wage Increase? It's Happened in Nearly 20 States.

Pennsylvania could learn a thing or two about how to breathe new life into its economy from 10 states preparing to give their lowest-wage workers a raise in the new year. 

Morning Must Reads: One Bidder? What Could Go Wrong?

The Keystone Research Center does not oppose the use of private contractors to provide services to federal, state and local governments as a matter of philosophy.

On pragmatic grounds, we DO support good governance, including carefully assessing the costs and benefits of privatization. Too often privatization is a goal in and of itself and good governance — careful weighing of pros and cons — isn't even in the vocabulary of privatization advocates.

Morning Must Reads: Oh Boy, 2013 Here We Come!

I bet many of you miss the last two years a little. Governor Tom Corbett is hoping to capitalize on that nostalgia by promising to focus over the next year on liquor privatization and transportation. That's right, it is time to party like it's November 2010. (Who doesn't fondly remember that era's hits? I still don't know what a G6 is?)

Third and State This Week: The Manufacturing Jobs Score, Charter School Bill Dies & a Win Against Corporate Welfare

This week at Third and State, we blogged about a new report on manufacturing job growth by presidential administration, the stalling of a charter school bill in the House, a rare victory in the endless fight against corporate welfare, the latest Pennsylvania jobs report, and much more!


  • On manufacturing jobs, Stephen Herzenberg highlighted a report he co-authored with Colin Gordon of the Iowa Policy Project on state-level manufacturing job growth and loss across 16 post-World War II presidential administrations.
  • On jobs and the economy, Mark Price offered his quick take on Friday's report showing the commonwealth's jobs picture in September remains headed in the wrong direction. Mark Price also blogged about a new report finding that skills shortages in manufacturing are a local, not a national, problem.
  • On economic development, Mark Price wrote about a food corporation's withdrawal of a request for a property tax abatement a day after Michael Wood of the Pennsylvania Budget and Policy Center raised questions about it in an op-ed in the Harrisburg Patriot-News.
  • On education, Jamar Thrasher wrote about a charter school reform bill that stalled this week in the state House.
  • On income inequality, Mark Price blogged about a piece in The New York Times that drew parallels between income inequality practices in old Venice and present day America. Mark also wrote that the biggest challenge facing the next President of the United States will be runaway inequality.

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

Morning Must Reads: The Self-Destruction of the 1 Percent

Over the weekend, Chrystia Freeland told a story about the city of Venice to warn of the pitfalls for all of society when extreme inequality undermines social mobility.

Third and State This Week: Challenging Conventional Wisdom on Payday Lending & Time to Raise the Minimum Wage

This week at Third and State, we blogged about a new report challenging the conventional wisdom on payday lending, the third anniversary of the last increase in the minimum wage, public policy that shrinks the economy, bizarre claims about income inequality and much more.

  • Jamar Thrasher wrote about a Pew Center on the States report showing that payday lending is less frequent in states with restrictive laws and that borrowers tend to use payday loans for recurring expenses — not just emergencies.
  • Intern Alan Bowie blogged about the third anniversary of the last increase in the minimum wage and how it has not kept pace with the rising cost of living.
  • On income inequality, Mark Price shared a Paul Krugman column catching the Tax Foundation making a bizarre claim about income inequality.
  • On jobs and the economy, Mark Price highlighted an insightful Q&A with Professor Peter Cappelli of the Wharton School of Business on his new book Why Good People Can't Get Jobs, and wrote about the danger of public policies that shrink the economy.
  • Finally, on the Marcellus Shale, Mark Price highlighted a Patriot-News column eviscerating the U.S. Chamber of Commerce for using suspect job numbers in a Marcellus gas public relations campaign.

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

Three Years and Counting on the Minimum Wage

In 1960, George Lesauvage of the National Restaurant Association was making the case against increasing the federal minimum wage. “Wages, of course, in the restaurant industry are low for several reasons,” he said. “One of the most important is the fringe benefits that a restaurant worker gets in the form of free meals which in terms of value to the employee are most significant. Another fringe would be free uniforms.”

Wow, free uniforms. He forgot to mention free restrooms!

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