Corruption impedes economic progress

Denise Allabaugh
March 26, 2010

NANTICOKE - Concerns about issues plaguing the area amid an economic downturn were aired Thursday at the inaugural county-wide jobs summit held at Luzerne County Community College.

Issues ranged from a high unemployment rate, increasing poverty level and skyrocketing health care costs at the three-hour-long summit hosted by the Luzerne County House Democratic Delegation.

Benco Dental President Charles Cohen strayed from the economic downturn and addressed another problem he says is having a negative impact on businesses in Luzerne County: corruption among government officials.

"It's hard to be a business in Northeastern Pennsylvania when we have a culture of corruption," Cohen said.

Cohen, whose company recently moved into the CenterPoint Commerce and Trade Park in Jenkins Township, said it is sad when local employees work hard and area leaders don't. When dealing with business people from out of town who might want to locate here, corruption puts the area in a bad light, he said.

His speech was followed by applause from the crowd of business and community leaders and government officials who attended the jobs summit, which was held to discuss job creation and economic development.

Cohen was among several panelists who participated in the jobs summit. The leaders of the Greater Wilkes-Barre, Greater Hazleton, Greater Pittston and South Valley chambers of commerce and state officials also participated.

Todd Vonderheid, president and chief executive officer of the Greater Wilkes-Barre Chamber of Business and Industry, compared the area to the tortoise in "The Tortoise and the Hare" fable, saying it is experiencing slow, steady growth.

"I believe the worst is behind us," Vonderheid said. "In the last quarter, we have seen upticks in orders for manufacturing."

Vonderheid said he remains concerned over three issues facing businesses: the increasing cost of health care, difficulties accessing capital and ethical issues in the workplace, such as a lack of basic skills and people not showing up for work.

Teri Ooms and Sherry Tracewski from the Institute for Public Policy and Economic Development kicked off the summit by providing an overview of the Luzerne County job market.

More people have been moving into the county than out, Ooms said. Luzerne County's population grew in 2009, according to U.S. Census Bureau estimates, advancing 0.23 percent to 312,845.

The number of people living in poverty, as well as the cost of living, are also increasing in Luzerne County while wages are decreasing, she said. About 14 percent of Luzerne County residents were living in poverty in 2008, up from about 11 percent in 2000, according to the Census Bureau. A family of four was considered impoverished in 2008 if their income fell below $22,025, according to U.S. Census Bureau guidelines.

State Reps. Todd A. Eachus, Phyllis Mundy, Eddie Day Pashinski, Jim Wasacz and John Yudichak, who represent the Luzerne County House Delegation, attended the jobs summit. With the unemployment rate in Northeastern Pennsylvania hovering just below 10 percent, they all echoed concerns about residents struggling to find jobs.

Mundy said they will take the issues raised at the summit to Harrisburg and will work together to find solutions for job creation, get the unemployed back to work and improve the local economy. Pashinski called the event a "shining example of civility."

"Collaboration is so critical," Pashinski said. "The country needs all of us working together across party lines. It's a critical time in the history of mankind. We are in a very dangerous time."

dallabaugh@citizensvoice.com, 570-821-2115