Economy of Pittsburgh

The economy of Pittsburgh, Pennsylvania is diversified, focused on services, medicine, higher education, tourism, banking, corporate headquarters and high technology. Once the center of the American steel industry, and still known as "The Steel City", today the city of Pittsburgh has no steel mills within its limits, though Pittsburgh-based companies such as US Steel, Ampco Pittsburgh and Allegheny Technologies own several working mills in the Pittsburgh metropolitan area.

Pittsburgh was chosen for the 2009 G-20 summit as its transformation is an example of a 21st-century economy. On September 8, 2009, President Barack Obama stated, "Pittsburgh stands as a bold example of how to create new jobs and industries while transitioning to a 21st century economy."

On the list of best cities for job growth in 2009, created by Tara Weiss, a writer for Forbes magazine, Pittsburgh secured its spot because of its strength in the health care and education industries with healthy foundations in technology or robotics and banking industries. The 2009 list of all cities places Pittsburgh as the 169th-best city for job growth.

Pittsburgh has also ranked in the top five most livable cities in four of the seven multi-year rankings of Places Rated Almanac (1983, 1985, 1989, and 2007).

During the mid-18th century, the economy of the Pittsburgh region was focused on agriculture and trade. After the American Revolutionary War, the government placed a tax on whiskey in order to pay off national debt. In 1794, the Whiskey Rebellion occurred in Pittsburgh and was the first challenge to the government.“The fledgling Federal government had decided to levy its first tax against whiskey, but the farmers argued they didn't have cash to pay taxes on bartered goods, and marched in protest. Washington had to send troops to squelch the protest and enforce the tax laws.”

During the 18th century, large coal deposits were discovered throughout Pittsburgh. Mount Washington, originally called "Coal Hill", the “most valuable deposit of bituminous coal in the entire United States, was discovered there in 1760”. Along with the natural resources of the area, Pittsburgh was located at the intersection of the Monongahela, Ohio, and Allegheny Rivers, that is, along the major trade routes of the United States, thus making Pittsburgh "one of the world's leading industrial powerhouses".

“The first and largest industry emerging in the 1800s was boat building—both flatboats to transport waves of pioneers and goods downriver, and keelboats, which a strong crew could propel upstream as well.” The second biggest industry in the region was glass production. The first glass factory was built in 1795 by James O'Hara and Isaac Craig.

Pittsburgh’s wealthiest industrialists during the 19th century all lived in a single neighborhood known as East Liberty. The major list of industrialists includes H. J. Heinz, George Westinghouse, Andrew Carnegie, Thomas Mellon, Andrew Mellon, Henry Clay Frick and Philander Knox. All of these men shared similar ideas in the system of capitalism and utilized their skills to net the world’s highest income per capita during the 19th century in this single neighborhood. Andrew Carnegie was also known as a philanthropist to the region. “In 1889 he wrote "The Gospel of Wealth", in which he asserted that all personal wealth beyond that required to supply the needs of one's family should be regarded as a trust fund to be administered for the benefit of the community”. Subsequently, the Carnegie Library, which is free to the public, opened in Pittsburgh in 1890 and is still open presently. Overall, Carnegie donated over $350 million for the establishment of organizations that benefit the public. Wealthy industrialists founded the Duquesne Club in 1873 and the Greater Pittsburgh Chamber of Commerce in 1874. The Pittsburgh Stock Exchange was also formed in 1864 as the "Oil Exchange" before becoming the "Coal Exchange" in 1870 and then back to the "Oil Exchange" in 1878 until opening for all general stocks by 1894. The stock exchange closed its Fourth Avenue "financial district" doors in August 1974 after computerization had consolidated trades in New York, Chicago and other global centers but not before a 1966 response from the New York Stock Exchange board of possibly relocating their trading floor to the city's facilities.