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House Republicans leaders won't allow a vote on extending healthcare subsidies. The White House defends strikes on alleged drug trafficking boats and escalates the conflict with Venezuela and interfaith groups press for an end to lethal injection.

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Report: In Current Recovery, No Gains for the "99 Percent" in PA

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Wednesday, January 28, 2015   

HARRISBURG, Pa. - Income inequality often is in the news, and a new report confirms that it may be even worse than earlier reported.

The report, "The Increasingly Unequal States of America," examines data by state. Report co-author Mark Price, an economist with the Keystone Research Center, said the news isn't good for most residents of the Commonwealth.

"The only group in Pennsylvania to see their real incomes increase, after adjusting for inflation, were the top 1 percent," he said. "Their incomes increased by about 28 percent."

Among the remaining 99 percent in Pennsylvania, he said, earnings fell 1.1 percent. The study covered data from 2009 to 2012, the latest year for which figures are available.

Price said longer-term trends are at work, too.

"The minimum wage today buys a lot fewer goods and services than it used to," he said. "Unionization is much lower today in the Pennsylvania economy than it was three decades ago - and again, that hurts workers in the middle, in the sort-of middle class."

Price said there were six economic expansions between 1949 and 1979, when people who weren't wealthy were still able to capture the majority of income growth. However, he added, that's no longer true.

"It's just a reflection that the economy really no longer is producing enough benefits or enough gains for a broad group of people," he said.

In this latest study, Pennsylvania is one of 18 states where the incomes of the "99 percent" fell, including California and New York.

The report is online at epi.org.


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