AKA the “What Are We Going To Do Now?” State
Pennsylvania, #2 to sign the Constitution, was founded by William Penn. By all accounts, he was a hippy and the son of a rich guy back in England. King Charles II owed Penn’s pops about $30 million in today’s money and just gave the guy what would become the state. Penn wanted to name the land Sylvania, which basically means “woods.” His dad was a bit more vain and named it “Penn’s Woods.” So Bill Penn established the colony and created two innovations still in use with today’s government: a county commission and freedom of religious persecution. Pennsylvania was wildly important as the United States were being established. Philadelphia was site of both Continental Congresses, and was the capital of the country until Washington DC was built.
Unfortunately, every year since the late 1700s has basically been a downhill charge for Pennsylvanians. Everything I can tell of Pennsylvania’s prominence rode on the coat-tails of one man, Benjamin Franklin. Philadelphia was a cultural, political, and commercial hub during the colonial times, but New-York City and Washington DC stole much of its thunder in the 1800s. Said thunder has not been returned.
The industrial revolution and the rise of agriculture brought relevance back to the state during this period, but making steel and farming are blue collar jobs, keeping the state from having the prestige of its neighbors (West Virginia excluded). Nevertheless, Pennsylvania does make many contributions to our economy today.
The state can be divided into two categories. On the one side you have major metropolitan areas like Philadelphia and Pittsburgh, and on the other side you have the vast rural presence. This makes politics in the state very interesting. We’ll start with the rural. Though the state is mid-pack in the country for agricultural output, they do rank highly in mushrooms, milk, Christmas trees, corn, grapes and horses. They also produce a fair amount of wine, which make sense because neighboring New-York does as well. I’ve never had Pennsylvania wine though. Sadly many Pennsylvanian farmers are not able to make a living on their output anymore. As baby-boomers retire, their children are not taking over the business. Instead they elect to move to the more metro areas, which leads us to…
Philadelphia, Pittsburgh, and other centers of commerce. Philly has managed to do well for itself, becoming a haven for expertise in law and medicine. Having an Ivy League school among many other universities in the area helps. That Ivy League, The University of Pennsylvania, has perhaps the best all around business school in the country, Wharton. Among some pharmaceutical companies like GlaxoSmithKline, Merck, and Astra Zenica’s research houses, you’ll also find the corporate headquarters for Comcast, Sunoco, and Lincoln Financial. Philly is unfortunately shrouded by New-York City, Boston, and Washington as major commercial locations.
Pittsburgh tells the story of a city that was. Once vital to the country for steel production, the fallout of that industry in the US took Pittsburgh with it. Located on the western side of the state, Pittsburgh’s economy is in line with the likes of Cleveland and Detroit, all cities that have suffered from the loss of manufacturing in the United States. Pittsburgh was once vital for shipping, having many railroads running through and being at the point of two three rivers, but Eisenhower ruined that with the whole interstate thing. Not to worry, Pittsburgh is on the rebound, PNC Financial, a top 10 bank, Dicks Sporting Goods, and American Eagle are all located in town. Carnegie Mellon, a prestigious research university, is also in Pittsburgh US Steel, this country’s largest steel producer is still churning out hot metal from its hometown there. Alcoa, another huge company you’ve never heard of that makes a bunch of materials you use splits its headquarters between the town and New-York. One look at their football team shows there is a sense of pride and commitment to the city.
Other areas like King of Prussia serve as major industrial hubs for many Fortune 500 companies, like GE and Lockheed Martin.
As previously stated you can now see the state is divided by the rural and metropolitan areas. I call Pennsylvania the “What are we going to do now?” state because they’ve struggled to define themselves as other areas of the mid-atlantic/northeast have thrived. They are first in nothing, but important to everything. With the strong academic institutions and pride of the population, Pennsylvania will remain an important state for the foreseeable future.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
