Monday, December 10, 2012

‘Right to work’: The wrong answer for Michigan’s economy | Economic Policy Institute

‘Right to work’: The wrong answer for Michigan’s economy | Economic Policy Institute
"RTW laws have no impact on the performance of state economies. Seven of the 10 highest-unemployment states are states with RTW laws, including Nevada and Florida, which have unemployment rates higher than Michigan’s unemployment rate of 10.5%, and South Carolina, which also has an unemployment rate of 10.5%. Factors other than RTW laws, such as major industries and climate, shape states’ economies. RTW laws lower wages for union and non-union workers by an average of $1,500 a year and decrease the likelihood employees will get health insurance or pensions through their jobs. By lowering compensation, they have the indirect effect of undermining consumer spending, which threatens economic growth. For every $1 million in wage cuts to workers, $850,000 less is spent in the economy, which translates into a loss of six jobs."