Wintery Knight

…integrating Christian faith and knowledge in the public square

Unemployment rates are lower and wages are higher in right-to-work states

Map of right-to-work states: Michigan is #24

Map of right-to-work states: Michigan is #24

Previously, we saw that unemployment rates in right-to-work states were MUCH lower than in states that force workers to join unions and pay union dues in order to work.

Curtis sent me this article from Investors Business Daily, which looks at whether wages are lower in states that have right-to-work laws.

Excerpt:

The president says right-to-work laws mean “the right to work for less money.” So how does he explain the fact that incomes are up in RTW states while forced unionism is a proven job killer?

Campaigning Monday in Michigan as it stood poised to become the nation’s 24th right-to-work state, President Obama spoke the exact opposite of the truth to union workers at a Daimler Detroit Diesel plant in the birthplace of organized labor.

Is Obama telling the truth?

Let’s see:

According to Michigan’s Mackinac Center, using data taken from the Bureau of Economic Analysis and Bureau of Labor Statistics, private-sector, inflation-adjusted employee compensation in right-to-work states increased by 12% between 2001 and 2011 compared with just 3% over the same period in forced-unionization states.

These good wages came from good jobs. Employment in right-to-work states expanded 2.4% over the same stretch vs. a 3.4% decline in non-right-to-work states. Ironically, Obama is taking credit for jobs created in RTW states.

According to the National Institute for Labor Relations Research, right-to-work states (excluding Indiana, which passed a RTW law in early 2012) “were responsible for 72% of all net household job growth across the U.S. from June 2009 through September 2012.”

This is why people vote with their feet and move to these states. RTW states experienced large population gains of 15.3% from 2000 to 2010, compared to 5.9% in non-RTW states.

Obama did get one thing right, though, when he said the bills that passed both houses of the Michigan legislature “don’t have to do with economics. They have everything to do with politics.”

The president who fought Boeing’s expansion in RTW South Carolina knows it’s all about his keeping union dues flowing into Democratic coffers and maintaining the plush lifestyles of the union leaders who support him.

The right thing for Republicans to do when they get elected is to cut off all sources of funding for the Democrat Party. Right-to-work laws and school choice promote freedom and diminish the amount of power that left-wing, pro-abortion, pro-gay-marriage labor unions can exert. They will have less money, and with less money, they will have less influence on elections. Let the people decide, not the powerful, corrupt labor unions.

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Michigan governor Rick Snyder signs right-to-work bill into law

Map of right-to-work states: Michigan is #24

Map of right-to-work states: Michigan is #24

It’s official – Michigan has enacted a new right-to-work law that will create more jobs and free workers from having to violate their consciences by forcibly supporting pro-abortion, pro-gay marriage policies via their mandatory union dues.

Here’s an interesting article by Byron York in the Washington Examiner, discussing the political significance of this development.

Excerpt:

Republicans say the move would not only give current workers the freedom to choose whether to join a union and pay dues but would, more importantly, bring many, many new jobs to Michigan. Rep. Gov. Rick Snyder, who supports the bill, points out that Indiana enacted (after a long and bitter fight) the same kind of law earlier this year. “We’ve carefully watched what’s gone on in Indiana since they passed similar legislation back in February,” Snyder told Fox News’ Greta van Susteren last week, “and they’ve seen a significant increase in the number of companies talking about [bringing] thousands of jobs to their state.”

Of course, the move is not just economic. It’s political, too. Democrats depend on millions — actually, billions — of dollars in support from the forced dues of union members. If that money supply were to dry up, or even just decrease, the Democratic Party would be in serious trouble.

De-funding the unions is the first step to education reform. And Michigan students need education reform very badly. Even 40% of the union workers – who are much more sensible and patriotic than the union bosses – agree with the new law:

Regardless of news reports, the people of Michigan are behind this. A recent poll showed that 51 percent of Michigan voters support right-to-work. Only 41 percent are opposed. In fact, 40 percent of union households supported it. In November, Michigan voters rejected a ballot proposal that would have amended the state constitution to prevent the legislature from passing a right-to-work law and elevated union contracts above state law. The New York Times called it “a test case on enshrining the rights of unions,” and unions spent more than $23 million campaigning for the initiative. It lost by 15 points.

[...][M]aking union dues voluntary makes union organizers less aggressive—they get less financial benefit from organizing new firms, because they cannot force workers to pay them. Union organizing attempts drop 40 percent to 50 percent after states pass a right-to-work law. That in turn attracts business investment. Employers want to know unions will leave them alone if they treat their workers well. As a result, right-to-work states have lower unemployment rates—and more manufacturing jobs.

CNS News reports that only 7% of Detroit public school 8th graders can read at proficiency level.

Excerpt:

In the public schools in Detroit, Mich., according to the U.S. Department of Education, only 7 percent of the eighth graders are grade-level proficient or better in reading.

Some public school teachers in the City of Detroit and around the state of Michigan are reportedly taking a vacation or a sick day today to protest right-to-work legislation likely to be approved by the state legislature. Under current law, Michigan public school teachers must pay dues to the teachers’ union. If the right-to-work law is enacted, Michigan public-school teachers will be free to join the union and pay dues to it if they wish, but they will also be free not to join the union and not to pay it dues.

Detroit public-school eighth graders do even worse in math than they do in reading, according to the Department of Education. While only 7 percent scored highly enough on the department’s National Assessment of Educational Progress test in 2011 to be rated “proficient” or better in reading, only 4 percent scored highly enough to be rated “proficient” or better in math.

Statewide in Michigan, only 32 percent of public-school eighth graders scored grade-level proficient or better in reading, and only 31 percent scored grade-level proficient or better in math.

According to this report, over 26,000 students missed school because of the “sick day” protest by the teachers.

Here’s a video of what happens at the protests:

The actual unemployment rate of right-to-work states is 6.7%. Compare that with the 8.7% unemployment rate of forced-unionism states. Jobs are the number one priority right now, and right-to-work means more jobs.

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Michigan approves right-to-work law for private sector unions

Map of right-to-work states: Michigan is #24

Map of right-to-work states: Michigan is #24

Dad sent me this article from Fox News, which reports on how Michigan became the 24th right-to-work state.

Excerpt:

Republicans rushed right-to-work legislation through the Michigan Legislature Thursday, drawing raucous protests from hundreds of union supporters, some of whom were pepper-sprayed by police when they tried to storm the Senate chamber.

With six-vote margins in both chambers, the House and Senate approved measures prohibiting private unions from requiring that nonunion employees pay fees. The Senate was debating a similar bill, with Democrats denouncing it as an attack on worker rights and the GOP sponsor insisting it would boost the economy and jobs. Separate legislation dealing with public-sector unions was expected to come later.

Because of rules requiring a five-day delay between votes in the two chambers on the same legislation, final enactment appears unlikely until next week. Republican Gov. Rick Snyder, who previously had said repeatedly that right-to-work was “not on my agenda,” told reporters Thursday he would sign the measures.

[...]In an interview with The Associated Press, Snyder said he had kept the issue at arm’s length while pursuing other programs to bolster the state economy. But he said circumstances had pushed the matter to the forefront.

“It is a divisive issue,” he acknowledged. “But it was already being divisive over the past few weeks, so let’s get this resolved. Let’s reach a conclusion that’s in the best interests of all.”

Also influencing his decision, he said, were reports that some 90 companies had decided to locate in Indiana since that state adopted right-to-work legislation. “That’s thousands of jobs, and we want to have that kind of success in Michigan,” he said.

Do right-to-work states create more jobs than forced-union-dues states, like the Republican governor says?

The radically left-wing Washington Post takes a look at it:

The Facts

We searched the Labor Department’s Bureau of Labor Statistics Web site to find data on each state’s non-farm, seasonally adjusted employment during the past 10 years. Just as Romney said, right-to-work states have better employment numbers on the whole.

Romney’s camp relied on numbers from the BLS household survey. The data, which his team compiled in July, show that right-to-work states experienced a net gain of 3.6 million jobs during the past decade, while “union states” saw a net loss of 900,000 jobs over the same time span.

The updated BLS numbers are right here.

Unions are a Democrat constituency, and that means that unions support abortion and gay marriage. It is wrong that unions are able to force socially conservative workers to pay dues that are used to elect pro-abortion and anti-marriage leftists. Right-to-work laws protect workers from being forced to support causes that violate their consciences. They can pay the dues if they want to, but they don’t have to. You shouldn’t have to support abortion and gay marriage just so you can work.

Now ask yourself another question. Why would Democrats want to prevent job creation? Could it be that they want more people to be dependent on government for their daily bread, so that they can control them and coerce them into voting for bigger government?

Democrats are the party of dependence, debt and unemployment. They hate jobs, they hate business. That’s why we have seen an explosion of debt, unemployment, taxes and regulations over the last four years, with more to come in the next four. You can’t argue with these numbers, and no amount of spirited teleprompter-reading will change what actually works. And what actually doesn’t work.

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Two-thirds of British millionaires disappeared after income tax increase on the rich

What happens when you “tax the rich”, like Obama wants to do?

The UK Telegraph explains what actually happens when you tax the rich.

Excerpt:

Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.

In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.

This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.

The figures have been seized upon by the Conservatives to claim that increasing the highest rate of tax actually led to a loss in revenues for the Government.

It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes.

[...]Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.

Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.

Similarly in France, with their Socialist leader’s 75% top tax rate: (worse than Obama!)

A flood of top-end properties are hitting the market as businessmen seek to leave France before stiff tax hikes hit, real estate agents and financial advisors say.

“It’s nearly a general panic. Some 400 to 500 residences worth more than one million euros ($1.3 million) have come onto the Paris market,” said managers at Daniel Feau, a real-estate broker that specialises in high-end property.

[...]While the Socialists’ plan to raise the tax rate to 75 percent on income above 1.0 million euros per year has generated the most headlines, a sharp increase in taxes on capital gains from the sales of stock and company stakes is pushing most people to leave, according Didier Bugeon, head of the wealth manager Equance.

French entrepreneurs have complained vociferously against a proposal in the Socialist’s 2013 budget to increase the capital gains tax on sales of company stakes, which they argue will kill the market for innovative start-up companies in France.

Entrepreneurs in the high-tech sector in particular often invest their own money and take low salaries in the hope they can later sell the company for a large sum.

They say a stiff increase in capital gains tax would remove incentives to do this in France. They also argue that capital has already been taxed several times in the making.

Rich people are not stupid. If you change the rules of the game, they make adjustments. Why on Earth would anyone keep working as hard as before when the government takes more of what they earn and gives it away to left-wing special interest groups? You either stop working as hard as before or you leave the country entirely. Rich people are not our slaves.

We let people keep the profits they make so that they will risk their capital and try to invent new things and create jobs. If we don’t let them keep their profits, then they will not save, invest, take risks and create jobs. People who depend on “Obamaphones” don’t create jobs. Only rich people do. And the more you tax the rich, the fewer jobs you will have. That’s the way the world really works. Taking money from those who work and giving it to those who don’t sounds “nice”, but it doesn’t actually help the poor. What helps the poor is having a job, not giving them free stuff paid for by others who work. You should not be able to make more money by not working than by working in this country, either.

Remember what happened when Reagan and Bush cut taxes? Massive drops in unemployment and higher revenues from taxes.

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CBO: If Bush tax cuts are not renewed, America is headed for another recession

From the Heritage Foundation.

Excerpt:

About 1.6 million American jobs hang in the balance. That is the clear implication of analysis contained in the annual budget update by the Congressional Budget Office (CBO).

Along with all manner of dire and dreary budget data reflecting President Obama’s budget and economic policies to date, CBO provides its assessment of what would happen if the President and Congress sit on their respective hands and fail to defuse the threats of Taxmageddon and the fiscal cliff. The answer is fairly simple: recession.

As CBO so diplomatically put it, “such fiscal tightening will lead to economic conditions in 2013 that will probably be considered a recession.”

Taxmageddon is the $500 billion tax hike slated to take effect on January 1, while the fiscal cliff consists of Taxmageddon plus various spending reductions—among them the sequestration left over from the disastrous negotiations that led to the Budget Control Act in 2011.

According to CBO’s analysis, if Congress defuses Taxmageddon and the fiscal cliff, then the economy will grow at a tepid 1.7 percent in 2013 and the unemployment rate will remain stuck around 8 percent. But if President Obama and Congress play chicken with Taxmageddon and fail to act, then the economy will contract by about 0.5 percent and the unemployment rate will shoot up to 9.1 percent, about halfway back to the peak from the past recession.

Forget percentages—what does this mean in actual jobs lost if President Obama and Congress fail to act? It means roughly 1.6 million more Americans will be out of work—on top of the 12.8 million who already want to work but can’t find jobs.

Just about every relevant school of economics, from the President’s pure Keynesianism to supply-side and neoclassical persuasions, tells much the same tale on net: Raising tax rates on a weak economy produces a weaker economy. It’s not terribly complicated.

Here’s my advice: This time, let’s elect someone with someone with experience in business administration and economics.

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