Michigan incomes rise in wake of right to work legislation
Former union stronghold Michigan shocked the labor inion bosses when it became a right to work state in December 2012. There were threats of violence:
"There will be blood, there will be repercussions," State Democratic Rep. Douglas Geiss, speaking on the House floor on Tuesday, warned ahead of the votes.
And of course, there were predictions of disaster for the “little guy” as ruthless bosses would exploit the defenseless workers.
Senate Minority Leader Gretchen Whitmer, D-East Lansing, said that right-to-work legislation would lower employee wages.
Utter self-serving nonsense from the political party which rakes off union dues as political “contributions” from workers whose paychecks are deducted from by their union bosses. Michigan Capitol Confidential reports:
Michigan’s per-capita personal income increased from $38,291 in 2012 (before right-to-work became law) to $39,215 in 2013, according to the U.S. Department of Commerce’s Bureau of Economic Analysis. That increase was the ninth highest in the country. (snip)
“The dire predictions of right-to-work detractors have not come true — Michigan has been a leader in income growth since passage,” said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.
A study released this week by Richard Vedder, a distinguished professor of economics at Ohio University and an adjunct scholar with the American Enterprise Institute as well as with the Mackinac Center, found that “incomes rise following the passage of RTW laws, even after adjusting for substantial population growth that those laws also induce. RTW states tend to be vibrant and growing; non-RTW states tend to be stagnant and aging.”
The study states: “The evidence suggests that if non-RTW states had adopted RTW laws 35 years ago or so, income levels would be on the order of $3,000 per person higher today, with the overall effect varying somewhat from state to state.”
In fairness, RTW is not the only factor in determining personal income, which includes sources other than wages in its totals. But it makes sense that freeing workers from the compulsion to join a union and fork over part of their paychecks to bosses who spend it on political donations to Democrats raises their incomes. Not to mention that it stimulates entrepreneurs and established companies to expand job opportunities, thereby raising demand for workers, and growing wages.
Another big fail for big labor. More evidence that unions harm workers
Hat tip: iOwnTheWorld.com