Tag Archives: Blue Collar

Right-to-work states gained jobs three times faster than forced union states

Gallup poll on right-to-work, August 2014
Gallup poll on right-to-work, August 2014

This is from economist Stephen Moore writing in Investors Business Daily.

He writes:

Wisconsin is poised this week to become the 25th “right-to-work state,” ending forced unionization and allowing individual workers to decide if they want to join a union or not.

The Wisconsin Senate just recently passed right-to-work, and our sources in Madison say that the House, which is controlled by Republicans, will enact a similar law in the days ahead.

Republican Gov. Scott Walker, a leading presidential candidate, is sure to sign the bill when it gets to his desk. “This isn’t anti-union,” insists Walker. “It restores worker rights and brings jobs back to Wisconsin.”

Some 3,000 liberal protesters stormed the Capitol in Madison over the weekend to reverse the momentum for the new law. This isn’t Walker’s first dust-up with union bosses. Four years ago, nearly 100,000 activists grabbed nationwide headlines when they protested his reforms in Wisconsin’s collective bargaining process with public employee unions.

If the new law passes, Wisconsin would join two other blue-collar, industrial Midwestern states — Michigan and Indiana — to recently adopt right-to-work. “If you had told me five years ago that right-to-work would become law in Indiana, Michigan and Wisconsin, I wouldn’t have thought it was even remotely possible,” says economist Arthur Laffer.

Laffer and I have conducted substantial economic research showing three times the pace of jobs gains in right-to-work states than in the states with forced union rules that predominate in deep blue states such as California, New York and Illinois.

In the 2003-13 period, jobs were up by 8.6% in right-to-work states, and up only 3.7% in forced union states. Most of the southern states, with the exception of Kentucky, are right-to-work

Many auto jobs in recent decades have moved out of Michigan and Ohio and into states such as Texas, Alabama and South Carolina, due in part to right-to-work laws in Dixie.

But as union power recedes in the Midwestern states, many of the region’s governors see factory jobs returning to their backyards. “Right to work is already lowering unemployment in Indiana and causing a manufacturing revival here,” says Gov. Mike Pence.

Companies are more attracted to right-to-work states, and that means more jobs become available.

Here is Congressional testimony from James Sherk, senior policy analyst in labor economics at The Heritage Foundation. I really recommend bookmarking this article. Even though it is very long, it is up-to-date and comprehensive. I am linking to it because he responds to objections to right-to-work laws raised by unions.

Do right-to-work laws hurt the middle class?:

Union Strength and the Middle Class. Unions and their supporters frequently claim the opposite: that unions helped build the middle class and weaker unions hurt all workers—not just union members. To make this point they often juxtapose the decline of union membership since the late 1960s with the share of income going to the middle class. The Economic Policy Institute did exactly this when criticizing the possibility of RTW in Wisconsin. These comparisons suffer from two problems. First, the absolute standards of living for middle-class workers have risen substantially over the past generation. Inflation-adjusted market earnings rose by one-fifth for middle-class workers between 1979 and 2011. After-tax incomes rose at an even faster pace. Middle-class workers today enjoy substantially higher standards of living than their counterparts in the 1970s.

Secondly, these figures conflate correlation with causation. During the time period EPI examined union membership correlates well with their measure of middle-class income shares. Extending the graph back another two decades eliminates this correlation. U.S. union density surged in the late 1930s and during World War II. It peaked at about a third of the overall economy and private-sector workforce in the mid-1950s. During this time period America had few global competitors. From the mid-1950s onward global competition increased and U.S. union membership steadily declined. Between 1954 and 1970 union density dropped from 34.7 percent to 27.3 percent. Unions lost over a fifth of their support in just over a decade and a half.

During this period middle-class income and living standards grew rapidly. No one remembers the 1950s and 1960s as bad for the middle class, despite the substantial de-unionization that occurred. Over a longer historical period changes in U.S. union strength show little correlation with middle-class income shares. Liberal analysts come to their conclusion by looking only at the historical period in which the two trends align.

Do right-to-work states have lower wages?:

Unions Argue RTW Hurts Wages. In the same vein, unions argue that RTW laws lower wages. As the Wisconsin AFL-CIO recently claimed:

These anti-worker Right To Work laws just force all working families to work harder for lower pay and less benefits, whether they’re in a union or not. The average worker makes about $5,000 less and pensions are lower and less secure in Right to Work states.

This statement contains a degree of truth: average wages in right-to-work states are approximately that much lower than in non-RTW states. This happens because right-to-work states also have below-average costs of living (COL). Virtually the entire South has passed RTW, but no Northeastern states have passed an RTW law. The Northeast has higher COL and higher average wages; the South has lower living costs and lower wages.

[…]All but one right-to-work state has living costs at or below the national average. All ten of the states with the highest COL have compulsory union dues. Analyses that control for these COL differences have historically found that RTW has no deleterious effects on workers’ real purchasing power.

Recently the Economic Policy Institute has claimed that workers in RTW states make 3 percent less than workers without RTW protection, even after controlling for living costs. Heritage replicated this analysis and found that EPI made two major mistakes: it included improper control variables and did not account for measurement error in their COL variables. These mistakes drive their results. Correcting these mistakes shows that private-sector wages have no statistically detectable correlation with RTW laws. The supplement and the appendices to this testimony explain the technical details of this replication. Properly measured, RTW laws have no effect on wages in the private sector.

Although the history of unions shows that unions were a valuable and necessary check on the power of greedy corporations in times past, today unions are using the dues they collect from workers to elect Democrats. The vast majority of political contributions made by the big unions go to Democrats.

Here’s one example, using the Service Employees International Union numbers:

Service Employees International Union
Service Employees International Union

(Click for larger image)

So if you oppose what Democrat politicians are doing, it makes sense to free workers from being forced to pay union dues for causes that are against their values. The average rank-and-file member of a union does not share Democrat values on things like abortion and gay marriage, in my opinion. Why should they be forced to pay union dues that go to elect politicians who oppose their values?

Obama and family bill taxpayers for 17 lavish vacations

FrontPage Magazine explains.

Excerpt:

When the president’s 13-year-old daughter, Malia, took a Spring Break trip to Mexico with 12 of her friends and 25 Secret Service agents–one that reportedly cost taxpayers $2.5 million–it was covered by the mainstream media. AFP filed the initial report, and the story was subsequently picked up by Yahoo, the Huffington Post, and the International Business Times, as well as foreign publications, such as Daily Mail, the Telegraph and The Australian.

Yet by the same evening, all of the stories had been removed from each of those sites. The updated links either directed one to a site’s home page or 404 error pages, reading “page not found.” What happened? The White House got a compliant media to scrub the story. Kristina Schake, Communications Director to the First Lady, confirmed this to Politico: “From the beginning of the administration, the White House has asked news outlets not to report on or photograph the Obama children when they are not with their parents and there is no vital news interest. We have reminded outlets of this request in order to protect the privacy and security of these girls.”

Again, such concerns for the safety of First Family members are entirely legitimate. Yet some questions remain unanswered. Why would the president allow his daughter to travel to Mexico despite a Texas Department of Public Safety warning not to go there because “cartel violence and other criminal activity represent a significant safety threat, even in some resort areas”? Why was it necessary to include a dozen friends, making the trip more expensive and security far more complicated? Why are members of the mainstream media taking marching orders from the White House? Why did the trip costtaxpayers $2.5 million?

Perhaps, as the saying goes, the apple doesn’t fall far from the tree. Last week, Judicial Watch released a report revealing that First Lady Michelle Obama’s trip to Costa Del Sol, Spain in 2010 cost taxpayers $467,585. Again, no reasonable person begrudges a woman in the public spotlight some rest and relaxation. But as the New York Times reports, part of that R&R included a stay at the “five-star Hotel Villa Padierna near Marbella, where at least 30 rooms were reserved for the entourage, including those for security. The hotel is one of Spain’s more luxurious establishments, with rooms ranging from $500-a-night to a $6,600 suite with 24-hour butler service.”

Furthermore, Mrs. Obama is hardly reticent when it comes to taking vacations. Her February 2012 trip to upscale Aspen, Colorado, for a President’s Day ski weekend with daughters Sasha and Malia, marked the 16th vacation (the updated number is now 17) taken by Obama family members in just over three years, not including visits to the Camp David compound, or short trips like a New York City “date night” taken in May 2009. Nor is the First Lady or the president seemingly concerned saddling taxpayers with the cost of flying separately to the same vacation sites. It cost taxpayers $100,000 when the First Lady jetted to a 2010 Hawaii vacation ahead of her husband, and several thousands more when the First Lady traveled to a Martha’s Vineyard vacation on a separate government jet only four hours prior to the president’s trip there. While at Martha’s Vineyard, the First Family stayed at Blue Heron Farm, a property that reportedly rents for approximately $50,000 per week. And on a trip to Maine in July of 2010, the President’s dog, Bo, and his handler traveled on a separate plane to that destination.

Such a penchant for extravagance has added up to some pretty daunting numbers. The UK’s Daily Mail, citing White House sources who referred to the First Lady as “a vacation junkie,” claimed Michelle Obama had “has spent $10 million of U.S. taxpayers’ money on vacations alone in the past year”–as of August 2011. The unnamed source further notes that Mrs. Obama also enjoys “drinking expensive booze during her trips. She favors martinis with top-shelf vodka and has a taste for rich sparking wines.”

We are now approaching a $16 trillion dollar national debt, with $8 trillion of it accumulated between the time when the Democrats took over the House and Senate in January 2007 to now. You would think that we might see some awareness of the situation from the man in charge. But he seems to be oblivious to what real Americans are facing as they try to make ends meet.

Santorum campaign relies on donated buses and door-to-door campaigning

From socially liberal Business Week.

Excerpt:

With minimal campaign organization and less funds than his rivals, Santorum has boosted his campaign with the votes of a network of evangelical Christians, anti-abortion rights activists and home-schooling parents who are resisting frontrunner Mitt Romney. In a March 8-11 national Bloomberg Poll, likely voters who described themselves as “born again” or evangelical Christian backed Santorum by 42 percent compared with 28 percent for Romney.

“Romney’s inability to close out the race has given Santorum a golden opportunity to unite social conservatives behind him, and they are getting in line,” said Keith Appell, a Republican public relations executive who works with social conservative groups.

Parents who home school their children are spreading the message on Facebook. Southern Baptist pastors are promoting Santorum’s candidacy to their members. Anti-abortion rights advocates are boarding the “Rick Bus” for multi-state voter mobilization tours.

Two days before Tennessee’s primary, Santorum attended services on March 4 at the Bellevue Baptist Church, a 7,000- member organization in the Memphis suburbs.

[…]Santorum won the state’s primary.

Such efforts are helping the former Pennsylvania senator compensate for a campaign operation that trails Romney in every measure of strength: money, staff, and organization.

Romney raised $63 million for his campaign through January, compared with $7 million by Santorum. Santorum had spent $148,806 on salaries and benefits through January; Romney’s personnel costs have exceeded $4.5 million. Santorum recently opened a national campaign headquarters in Virginia; Romney’s offices near Boston Harbor have been open nearly a year.

He’s tapping into well organized yet loosely affiliated groups of activists whose leaders consider Santorum one of them. “Santorum has piggybacked on the top of other existing grassroots networks,” said Cleta Mitchell, his campaign counsel. “They’re basically activating their networks on his behalf.”

[…]Romney and a political action committee supporting him ran 64 percent of the commercials that aired in Mississippi and Alabama in the month before the primaries, compared to just 15 percent aired by Santorum’s backers, according to data from New York-based Kantar Media’s CMAG, which tracks advertising.

The article tries to paint Santorum as a social conservative, and he is. But he also has a solid economic plan, that’s targeted to the middle class, and especially manufacturing. Basically, Romney is burning through millions and millions of dollars to buy the nomination. But ordinary conservatives, especially social conservatives, like Rick Santorum best.

Rick Santorum

Rick Santorum’s economic plan is good for Ohio and Ohioans

From the Wall Street Journal, a column by Rick Santorum.

Excerpt:

[I]n my first 100 days as president, I’ll submit to Congress and work to pass a comprehensive pro-growth and pro-family Economic Freedom Agenda. Here are 10 of its main initiatives:

  • Unleash America’s energy. I’ll approve the Keystone Pipeline for jobs and energy security, and sign an order on day one unleashing America’s domestic energy production, allowing states to choose where they want to explore for oil and natural gas and to set their own regulations for hydrofracking.
  • Stop job-killing regulation. All Obama administration regulations that have an economic burden over $100 million will be repealed, including the Environmental Protection Agency rule on CO2 emissions that’s already shut down six power plants. I’ll review all regulations, making sure they use sound science and cost benefit analysis.
  • A pro-growth, pro-family tax policy. I’ll submit to Congress comprehensive tax policies to strengthen opportunity in our country, with only two income tax rates of 10% and 28%. To help families, I’ll triple the personal deduction for children and eliminate the marriage tax penalty.
  • Restore America’s competitiveness. The corporate tax rate should be halved, to a flat rate of 17.5%. Corporations should be allowed to expense all business equipment and investment. Taxes on corporate earnings repatriated from overseas should be eliminated to bring home manufacturing. I’ll take the lead on tort reform to lower costs to consumers.
  • Rein in spending. I’ll propose spending cuts of $5 trillion over five years, including cuts for the remainder of fiscal year 2013. I’ll propose budgets that spend less money each year than prior years, and I’ll reduce the nondefense-related federal work force by at least 10%, without replacing them with private contractors.
  • Repeal and replace ObamaCare. I’ll submit legislation to repeal ObamaCare, and on day one issue an executive order ending related regulatory obligations on the states. I’ll work with Congress to replace ObamaCare with competitive insurance choices to improve quality and limit the costs of health care, while protecting those with uninsurable health conditions. In contrast, Gov. Romney signed into law RomneyCare, which provided the model for ObamaCare. Its best-known feature is its overreaching individual health-care mandate. But it shares over a dozen other similarities with ObamaCare and has given Massachusetts the highest health-care premiums in the nation, and longer waits for health care.
  • Balance the budget. I’ll submit to Congress a budget that will balance within four years and call on Congress to pass a balanced-budget amendment to the Constitution which limits federal spending to 18% of GDP.
  • Negotiate and submit free trade agreements. Because many Americans work for companies which export, I’ll initiate negotiations in the first 100 days and submit to Congress five free trade agreements during my first year in office to increase exports.
  • Reform entitlements. I’ll cut means-tested entitlement programs by 10% across the board, freeze them for four years, and block grant them to states—as I did as the author of welfare reform in 1996. I’ll reform Medicare and Social Security so they are fiscally sustainable for seniors and young people.
  • Revive housing. I’ll submit plans to Congress to phase out within several years Fannie Mae and Freddie Mac’s federal housing role, reform and make transparent the Federal Reserve, and allow families whose mortgages are “underwater” to deduct losses from the sale of their home in order to get a fresh start in difficult economic times.

According to the Wall Street Journal, Santorum’s a “supply-sider for the working man“.

Rick Santorum

What does Rick Santorum’s economic plan do?

From the Wall Street Journal, a column by Rick Santorum.

Excerpt:

[I]n my first 100 days as president, I’ll submit to Congress and work to pass a comprehensive pro-growth and pro-family Economic Freedom Agenda. Here are 10 of its main initiatives:

  • Unleash America’s energy. I’ll approve the Keystone Pipeline for jobs and energy security, and sign an order on day one unleashing America’s domestic energy production, allowing states to choose where they want to explore for oil and natural gas and to set their own regulations for hydrofracking.
  • Stop job-killing regulation. All Obama administration regulations that have an economic burden over $100 million will be repealed, including the Environmental Protection Agency rule on CO2 emissions that’s already shut down six power plants. I’ll review all regulations, making sure they use sound science and cost benefit analysis.
  • A pro-growth, pro-family tax policy. I’ll submit to Congress comprehensive tax policies to strengthen opportunity in our country, with only two income tax rates of 10% and 28%. To help families, I’ll triple the personal deduction for children and eliminate the marriage tax penalty.
  • Restore America’s competitiveness. The corporate tax rate should be halved, to a flat rate of 17.5%. Corporations should be allowed to expense all business equipment and investment. Taxes on corporate earnings repatriated from overseas should be eliminated to bring home manufacturing. I’ll take the lead on tort reform to lower costs to consumers.
  • Rein in spending. I’ll propose spending cuts of $5 trillion over five years, including cuts for the remainder of fiscal year 2013. I’ll propose budgets that spend less money each year than prior years, and I’ll reduce the nondefense-related federal work force by at least 10%, without replacing them with private contractors.
  • Repeal and replace ObamaCare. I’ll submit legislation to repeal ObamaCare, and on day one issue an executive order ending related regulatory obligations on the states. I’ll work with Congress to replace ObamaCare with competitive insurance choices to improve quality and limit the costs of health care, while protecting those with uninsurable health conditions. In contrast, Gov. Romney signed into law RomneyCare, which provided the model for ObamaCare. Its best-known feature is its overreaching individual health-care mandate. But it shares over a dozen other similarities with ObamaCare and has given Massachusetts the highest health-care premiums in the nation, and longer waits for health care.
  • Balance the budget. I’ll submit to Congress a budget that will balance within four years and call on Congress to pass a balanced-budget amendment to the Constitution which limits federal spending to 18% of GDP.
  • Negotiate and submit free trade agreements. Because many Americans work for companies which export, I’ll initiate negotiations in the first 100 days and submit to Congress five free trade agreements during my first year in office to increase exports.
  • Reform entitlements. I’ll cut means-tested entitlement programs by 10% across the board, freeze them for four years, and block grant them to states—as I did as the author of welfare reform in 1996. I’ll reform Medicare and Social Security so they are fiscally sustainable for seniors and young people.
  • Revive housing. I’ll submit plans to Congress to phase out within several years Fannie Mae and Freddie Mac’s federal housing role, reform and make transparent the Federal Reserve, and allow families whose mortgages are “underwater” to deduct losses from the sale of their home in order to get a fresh start in difficult economic times.

According to the Wall Street Journal, Santorum’s a “supply-sider for the working man“.

Rick Santorum