Right To Work States Continue to Pull U.S. Economy Above Water

Just read Louisiana's Governor Bobby Jindal's recent letter: Dear Friends - The last couple weeks have been chock full of major economic development wins for Louisiana. In Central Louisiana, we announced that UPS Midstream Services Inc. is investing more than $3.9 million to construct a new full-service machine facility. ... In Northeast Louisiana, Drax Biomass International announced that the company is building a new wood pellet facility in Bastrop and a storage-and-shipping facility in Baton Rouge. As NBC33 reported, the two projects will combine to create ... new jobs for Louisiana. LocalMed, a digital healthcare startup and homegrown Louisiana company, will create new jobs in Baton Rouge. These announcements come on the heels of perhaps some of the biggest economic development news Louisiana has ever had.

Big Labor Sues to Force Kids into Bad Schools

Big Labor Sues to Force Kids into Bad Schools

Just when you think they can't go any lower, the union bosses have filed a lawsuit in Louisiana to force children to attend poor schools.  The Wall Street Journal opines on the latest big labor outrage: Here's the bizarre world in which we live: In 2007 Gabriel Evans attended a public school in New Orleans graded "F" by the Louisiana Department of Education. Thanks to a New Orleans voucher program, Gabriel moved in 2008 to a Catholic school. His mother, Valerie Evans, calls the voucher a "lifesaver," allowing him to get "out of a public school system that is filled with fear, confusion and violence." So what is the response of the teachers union? Sue the state to force 11-year-old Gabriel back to the failing school. This week a state court in Baton Rouge is hearing the union challenge to Louisiana's Act 2, which expanded the New Orleans program statewide and allows families with a household income less than 250% of the federal poverty line to get a voucher to escape schools ranked C or worse by the state. Gabriel's voucher covers $4,315 in annual tuition. The tragedy is how many students qualify for the program. According to the state, 953 of the state's 1,373 public schools (K-12) were ranked C, D or F. Under the new program, more than 4,900 students have received scholarships allowing them to attend non-public schools. Enter the teachers unions, which sued this summer to stop the incursion into their rotting enterprise. According to the Louisiana Federation of Teachers and the Louisiana Association of Educators, the voucher program steals money from public schools.

Time to Give Indiana an Economic Edge

Time to Give Indiana an Economic Edge

As Right to Work legislation finds its way back to the top of the legislative agenda in the state capital, Andrea Neal looks at the benefits of enacting a Right to Work bill in the Hoosier State: It doesn't take an economist to spot the common thread in these recent economic development headlines: Chattanooga, Tenn., July 29: "Volkswagen hires 2,000th employee." Shreveport, La., July 28: "NJ-based bag manufacturer to build Louisiana plant." Decatur, Ala., July 21: "Polyplex to build $185 million plant." West Point, Ga., July 7: "Kia builds vehicle No. 300,000." All four stories have Southern datelines. All come from states with right-to-work laws, which prohibit labor contracts that [force] employees to join a union or pay a union representation fee. This is the issue that prompted the five-week House Democratic walkout during the 2011 Indiana General Assembly. The Democrats -- a minority in both House and Senate -- had no other leverage. So when a right-to-work bill came up unexpectedly in a session that was supposed to be about the budget, redistricting and education, they bolted. Republicans capitulated and took the legislation off the table. In 2012, it will return with a vengeance, and this time Democrats can't avoid it. Right-to-work has been promised a full public airing. The Interim Study Committee on Employment Issues, chaired by Sen. Phil Boots, R-Crawfordsville, is taking a first crack this summer and hopes to recommend a bill by November. Gov. Mitch Daniels, who didn't support the bill last session, has hinted he might this time around.

"Former Michigan Governor Jennifer Granholm Makes the Case for Right to Work Laws"

Matt Mayer of the Buckeye Institute debunks the long-term economic growth without Right To Work freedom is sustainable. Mayer uses a Columbus Dispatch reporter Joe Hatlett column that featured Former Michigan Gov. Jennifer Granholm to expose the fact that corporate welfare and reduced regulations ignore the “proverbial elephant in the room weighing down” compulsory union states like Indiana, Ohio, Illinois,, and Michigan. From Matt Mayer’s post: “With Michigan bleeding jobs and tax revenues, Granholm said she followed the corporate playbook in her attempt to close a huge state budget deficit and make Michigan more competitive. ‘In listening to the business community, I cut takes [sic] 99 times, and I ended shrinking government more than any state in the nation. In my two terms, I cut more by far than any state in the nation. And yet, we still have the highest unemployment rate. There was no correlation.’ Granholm conceded that streamlining business regulations and lowering taxes — Kasich’s economic recovery mantra — are helpful, but they aren’t a panacea…[l]abor costs, help with start-up costs and proximity to markets are other factors.” Hallett and Governor Granholm fail to mention why streamlining regulations and lowering taxes aren’t helping the northern states (located within 50 percent of the U.S. population and with low start-up costs) compete against the southern and western states. Instead, Hallett ignores the obvious answer and pleads for an end to corporate pork (with which we enthusiastically agree). The reason Michigan and Ohio can’t compete is that the southern and western states already have fewer regulations and lower taxes, so “catching up” with those states still leaves the proverbial elephant in the room weighing down the northern states. Plus, those states are also pushing for lower taxes and fewer regulations, so the northern states are perpetually behind them. The elephant, which Governor Granholm does hint at, is labor costs, or, more specifically, unionized labor costs (see: General Motors and the United Auto Workers). As I noted in Six Principles for Fixing Ohio, “Of course, tax and regulatory burdens also impact a state’s economy. Although many of the forced unionization states have heavy tax burdens and many of the worker freedom states have light tax burdens, some heavily taxed worker freedom states (Idaho, Nevada, and Utah) had the strongest sustained job growth from 1990 to today. Similarly, a few moderately taxed forced unionization states still had weak job growth (Indiana, Illinois, and Missouri). The combination of both a heavy tax burden and forced unionization is deadly when it comes to job growth, as 11 of the 15 worst performing states are ranked in the top 20 for high tax burdens.” If Ohio and the other states from Missouri to Maine want to truly compete with Texas, Georgia, and South Carolina, then those states need to enact laws that protect the rights of workers not to join a labor union to get a job.