Union Special Privileges vs. Affordability
In addition to helping make the necessities and amenities of life more affordable, Right to Work laws help keep individual and family aggregate state-local tax burdens from spiraling out of control.
Michigan Needs Right to Work
As Michigan labor unions continue to impede progress and job creation, a group of free-market economists released a report arguing that Michigan’s economy could improve dramatically if it became a Right to Work state like neighboring Indiana.
Timothy Nash, the study’s director, led a team from Northwood University and Central Michigan University. Their findings: States with right-to-work laws performed better economically than Michigan.
Some examples:
Personal income growth: Per capita income grew 20 percent in Michigan from 2000 to 2010; in the U.S., 36 percent; 39 percent in right-to-work states and 34 percent in non-RTW states.
Real growth in gross state product: From 1998 to 2001, Michigan lagged all three benchmark groups with growth of 26.5 percent, compared with 71.5 percent in the U.S. overall; 85 percent in right-to-work and 64 percent non-RTW.
Job growth: Michigan’s nonfarm employment dropped nearly 17 percent from 2001 to 2010. At the same time, the U.S. grew 2 percent, right-to-work states nearly 4 percent and states without such laws 0.5 percent.
The complete, 175-page 2012 Michigan Economic Competitiveness Study can be found on the Michigan Chamber of Commerce website, michamber.com.
