Big Labor economist leaves out important details in Right To Work debate

Big Labor’s favorite economists Gordon Lafer’s ‘study’ “Right To Work, The wrong answer for Michigan’s economy” lists several companies that chose Michigan over Right To Work states, but he left out important details according to Tom Gantert at CAPCON.  Lafer fails to mention that Right To Work states offered no incentives, but Michigan offered millions in tax-incentives. Not only that, Lafer uses a laughable term to describe ‘forced-unionism states;’ he refers to them as “free bargaining states.”  As most know, unions are still able to bargain in Right To Work states.  But, what union bosses cannot do is force employees to pay union fees against their will.  For Lafer to refer to compulsory-unionism states as ‘free bargaining’ illustrates the insincerity of his analysis. From CAPCON: Lafer wrote, “Indeed, a series of recent corporate announcements make clear that many auto industry companies continue to prefer Michigan over right-to-work competitors …” But Lafer never mentioned that some of those businesses cited in his report received deals for millions of dollars in tax incentives to locate in Michigan while the competing states offered no incentives, according to research done by Michigan Capitol Confidential. In fact, even the Michigan Economic Development Corp. says those companies wouldn’t have picked this state had it not been for the MEDC’s handouts. MEDC memos received in a Freedom of Information Act request involving the businesses stated in Lafer’s report paint a picture of a state that has difficulty competing with right-to-work states without offering tax breaks. The memos refer to lower taxes and personnel costs in right-to-work states as a reason Michigan has to offer millions in incentives to attract the businesses. “He (Lafer) is listing successes that are actually evidence of failure,” said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.
Virginia's Stalwart Supporter of Right to Work: Gov. McDonnell

Virginia's Stalwart Supporter of Right to Work: Gov. McDonnell

Virginia is prospering more than most states in the nation, thanks in part to its Right to Work law -- and Gov. Bob McDonnell is not hesitate to acknowledge the fact.  He recently wrote a letter outlining his position on the issue and made it clear -- he is a proud and ardent supporter of the state's Right to Work law.  Read and enjoy: There’s much more separating Richmond and Washington than just 100 miles of interstate. It’s a Tale of Two Cities. In Washington they’re bogged down in red ink, spiraling debt, expanding government and overspending – all while the difficult decisions are left to future generations. Here in Richmond, for the second straight year, we’ve reached the end of our fiscal year in the black —with a surplus this year of more than $500 million. What does it take to create jobs and bring economic development to Virginia? It’s really common sense and a focus on getting results, something that is in short supply in Washington. Businesses want consistency and a level playing field, low taxes, reasonable regulation, good schools and a world-class transportation system. We are unapologetic supporters of Virginia’s Right-to-Work laws and fighting off the union excesses that is hurting businessmen across the United States. We’ve kept taxes low on businesses in Virginia. We’ve worked to reduce the regulatory burden on businesses here in the Commonwealth. Contrast that with how Washington does businesses. In Washington, the Administration is using unelected people in appointed boards to do what Congress can’t, like using the NLRB to prohibit companies like Boeing from relocating some of their workforce to Right To Work states.
Virginia's Stalwart Supporter of Right to Work: Gov. McDonnell

Virginia's Stalwart Supporter of Right to Work: Gov. McDonnell

Virginia is prospering more than most states in the nation, thanks in part to its Right to Work law -- and Gov. Bob McDonnell is not hesitate to acknowledge the fact.  He recently wrote a letter outlining his position on the issue and made it clear -- he is a proud and ardent supporter of the state's Right to Work law.  Read and enjoy: There’s much more separating Richmond and Washington than just 100 miles of interstate. It’s a Tale of Two Cities. In Washington they’re bogged down in red ink, spiraling debt, expanding government and overspending – all while the difficult decisions are left to future generations. Here in Richmond, for the second straight year, we’ve reached the end of our fiscal year in the black —with a surplus this year of more than $500 million. What does it take to create jobs and bring economic development to Virginia? It’s really common sense and a focus on getting results, something that is in short supply in Washington. Businesses want consistency and a level playing field, low taxes, reasonable regulation, good schools and a world-class transportation system. We are unapologetic supporters of Virginia’s Right-to-Work laws and fighting off the union excesses that is hurting businessmen across the United States. We’ve kept taxes low on businesses in Virginia. We’ve worked to reduce the regulatory burden on businesses here in the Commonwealth. Contrast that with how Washington does businesses. In Washington, the Administration is using unelected people in appointed boards to do what Congress can’t, like using the NLRB to prohibit companies like Boeing from relocating some of their workforce to Right To Work states.
Right to Work Debated in State Capitals

Right to Work Debated in State Capitals

    But National Forced-Dues Repeal Measure Still Being Held Back (Source: September 2011 NRTWC Newsletter) Not long ago, Big Labor was crowing about having thwarted citizen efforts to pass new Right to Work laws in Indiana and New Hampshire this year. But it's now clear that the boasts of the union bosses were premature. Legislative support for abolishing compulsory union membership, dues and fees has been and remains strong in both the Hoosier and Granite States. Union lobbyists have therefore had to rely heavily on Gov. Mitch Daniels (R-Ind.) and union-label Gov. John Lynch (D-N.H.) to prevent enactment of America's 23rd and 24th state Right to Work laws. But now Mr. Daniels, under increasing heat from thousands and thousands of freedom-loving Hoosiers, including many who have supported him in the past, is signaling that he may reconsider his opposition to legislative votes on Right to Work measures in Indianapolis next year. Meanwhile, Mr. Lynch's late-spring veto of H.B.474, which would prohibit the firing of New Hampshire employees for refusal to pay dues or fees to an unwanted union, may now potentially be overridden because of a sustained Right to Work lobbying campaign. States Can't Afford to Ignore Fact That Compulsory Unionism Hinders Economic Growth "In the two years since the severe 2008-9 national recession officially ended, most state economies have recovered only feebly, if at all," commented National Right to Work Committee President Mark Mix. "That's why many Indianans and New Hampshirites, along with the citizens of a number of other states that have yet to enact Right to Work laws, are now emphatically telling their elected officials that they can't afford to ignore the fact that compulsory unionism hinders economic growth. "Trends in employee compensation, that is, wages, salaries, bonuses and benefits, illustrate well the Right to Work growth advantage. "From 2000 to 2010, the inflation-adjusted outlays of private-sector businesses for employee compensation increased by an average of 11.8% in Right to Work states. That increase is nine times as great as forced-unionism states' combined 1.3% rise over the same period. "Twenty of the 22 Right to Work states experienced a real compensation increase greater than the national average of 4.9%. And 14 of the 15 states with the lowest real compensation growth lack a Right to Work law." Mr. Mix added that faster growth constitutes only a part of Right to Work states' edge. Adjusting for regional differences in living costs with the help of indices created by the non-partisan Missouri Economic Research and Information Center (MERIC), in 2010 the average compensation per private-sector employee in Right to Work states was $56,830. That's roughly $1100 more than the average for forced-unionism states. Cost of Living-Adjusted Compensation Higher In Right to Work States