Category: Inflation

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Use ARP Funds to Help With High Gas Prices

  By Economic Development, Inflation, PA Budget and Policy Center, PA Economy, Policy briefs

Pennsylvania’s families and economy are currently dealing with rising prices that are the result of the supply chain issues created by an unexpectedly quick economic recovery and the rise in gas prices created by Russia’s war on Ukraine. As we have shown, the state will have an accumulated surplus of $10.2 billion at the end of the current fiscal year. It’s time to use that money to deal with the current difficulties Pennsylvanians are facing—including the rise in gas prices—which in turn threaten to slow our economic recovery. Republicans in Harrisburg have recently called for cutting Pennsylvania’s gas tax to soften the blow of higher gas prices. But a temporary cut in the gas tax is the wrong policy for four reasons. First, when gas taxes go down, wealthy oil companies don’t reduce prices at the pump at the same rate, if at all. Instead, oil companies take their time… Continue reading

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It’s Time to Help People, Not Oil Companies

  By Energy, Inflation, PA Budget and Policy Center

Pennsylvania’s families and economy are currently being stressed by a rise in prices that’s the result of an unexpectedly quick economic recovery and the supply chain issues it created, the gas price spike created by Russia’s war on the Ukraine, and the determination on the part of multi-national corporations to take advantage of these conditions to maximize their profits. As we have shown elsewhere, the state will have an accumulated surplus of $10.2 billion at the end of the current fiscal year. The Republican-controlled General Assembly has left much ARP money unspent and added far more of it than necessary to the General Fund to balance the budget. It’s time to use that money to deal with the current difficulties faced by Pennsylvania families—including the rise in gas prices—which in turn threaten to slow our economic recovery. Continue reading