Home
/
RELIGION & LIBERTY ONLINE
/
Right-to-Work Legislation Showing Solid Gains
Right-to-Work Legislation Showing Solid Gains
Apr 27, 2026 8:56 PM

It may not be the silver bullet for every financial challenge facing states at the present, but those states adopting right-to-work (RTW) legislation are ing petitive. In your writer’s native Michigan, for example, RTW was signed by Gov. Rick Snyder in December 2012, and the results have been impressive. The American Legislative Exchange Council’s recently released 2014 “Rich States, Poor States” report places the Great Lakes State 12th out of 50. ALEC’s 2013 report placed Michigan at 25 between 1999 and 2009, and 17 in 2012. Michigan was ranked 50th in ALEC’s Economic Performance Ranking, which measures states’ economic performance between 2002 and 2009. Although RTW only accounts for one of the 15 variables ALEC considers, it places RTW and taxes at the top of the list:

[T]he two policy decisions that have the biggest impact on growth among the states are 1) the highest e tax rate faced by business and individuals, and 2) whether a state has forced-union policies or right-to-work statutes allowing workers to opt out of unions. If states are right-to-work and keep their corporate and personal e taxes low, and all other factors are held constant, this should go a long way to making those states a place where jobs, people, and capital move. Sure enough, our latest analysis covering 2002-2012 confirms this conclusion once again….

A survey of the literature on the economic effects of right-to-work laws confirms what the data above shows. Literature reviews done by two separate teams of researchers—Dr. Randall Pozdena and Dr. Eric Fruits, as well as Dr. Michael Hicks and Michael LaFaive—find significant support for the theory that right-to-work policies boost economic performance.In addition, both research teams’ own personal economic e to similar conclusions that conform with the academic consensus.

Workers are apparently starting to understand the negative effects of unions on jobs and overall economic improvement. In early 2014, the workers at a Volkswagen plant in right-to-work Chattanooga, TN famously voted down a United Auto Workers bid to unionize the plant. Many workers at the plant said they worried that a union would bankrupt the plant, sending their jobs elsewhere, and turn Chattanooga into bankrupt Detroit.

Yet, Vice President Joe Biden was in Detroit this past Labor Day, telling a crowd of union supporters: “Folks, there is something wrong with this picture…. We have got to restore the bargain established by unions…. If we don’t, America is in real trouble.”

The Mackinac Center for Public Policy – a free-market, Michigan-based think tank – championed RTW. In 2013, the Center’s Economic Policy Director Michael LaFaive (full disclosure: your writer is a former Mackinac Center employee and has retained a personal friendship with LaFaive) and Michael Hicks authored the study “Economic Growth and Right-to-Work Laws.” In their Executive Summary, they explain:

From 1971 through 1990, however, right-to-work laws increased average annual employment and real personal e growth by about 0.9 percentage points and increased average annual population growth by 1.3 percentage points. Further, from 1991 through 2011, the effect in each category was slightly smaller than in the previous period, but each was still statistically significant.

These results suggest that right-to-work laws have a positive and sometimes very positive impact on the economic well-being of states and their residents. Indeed, the study’s findings show that right-to-work laws, on average, cause a one-time, permanent increase in the rate of economic growth in states. Since this study deploys a new econometric model to measure the impact of right-to-work laws, it should be an important contribution to the growing research on this issue. Policymakers interested in improving their state’s economic performance should take note of the study’s findings.

And this from the study’s conclusion:

This study examines the impact of right-to-work laws on three measures of state-level aggregate economic activity (employment, real personal e and population) from 1947 through 2011. It deploys a careful temporal analysis of these effects and attempts to isolate the specific effect right-to-work laws had on individual states.

This research suggests that from 1947 through 1970 (the period immediately following the Taft-Hartley Act), right-to-work laws had very little meaningful statistical impact on overall economic performance in right-to-work states. However, from 1971 through1990, when manufacturing employment in the United States began to languish, right-to-work laws demonstrated a statistically significant effect on these measures. Finally, over the course of roughly the last two decades, from 1991through 2011, right-to-work laws’ impact on state economic well-being has moderately slowed, but remains considerable.

These findings suggest that right-to-work laws may have a positive — at times very positive — impact on the economic well-being of a state and its residents.

“Right-to-work simply means that a union cannot get a worker fired for not paying them. It does not affect collective bargaining in any other way,” Vincent F. Vernuccio, Mackinac Center’s director of Labor Policy, told me. “Workers in Michigan and in all right-to-work states can still bargain over wages, hours, working conditions and anything they could bargain for before right-to-work. “

Vernuccio continued: “Besides higher wage growth, higher population growth, and when cost of living is factored in workers earning more, right-to-work also makes unions stronger. Right-to-work means that unions must prove their worth to their members and put their members’ needs above the special interests. It is for this reason and the fact that there are more jobs are going to right-to-work states that unions in those states are growing.”

RTW states enjoy increased real personal e growth, population growth and employment growth, according to a Competitive Enterprise Institute study, which concluded “the overall effect of a RTW law is to increase economic growth rates by 11.5 percentage points” and calculated loss of potential e in non-RTW states between 1977 and 2012 at a median $3,278 per capita, or nearly $13,000 annually per family of four.

According to the Mackinac Center’s analysis of the CEI study:

The study highlights some additional statistics that suggest RTW laws have a positive impact on economic growth. For instance, real personal e in RTW states grew by 165 percent from 1977 to 2012, but only by 99 percent in states without such laws. Measured by per-capita e, states with RTW laws grew by 65 percent, whereas non-RTW states grew by only 50 percent.

Generalizing about the millions of interactions and factors that impact a state’s economy is tricky, and one should always use caution. But a growing amount of evidence suggests that states with RTW laws, by lowering the actual, perceived or future cost of doing business, attract more capital, firms and workers. Eventually these factors add up and contribute to a growing state economy, just as general economic theory would predict.

The benefits won for workers from their respective unions in the past and from RTW legislation in the present are indisputable. As noted by Acton’s Jordan Ballor:

The key here is to understand that where union membership pulsory and the unions themselves are supported by government subsidy, the rightful purpose of labor unions as recognized in Christian social thought (to protect the welfare of the workers and in so doing promote mon good) is undermined. Voluntary associations, including voluntary and free labor unions, have a critical role to play in a flourishing society. But under a mandatory system, where labor unions are free petition and loss of potential members, it es too easy to subsume the promotion of worker welfare under the promotion of the welfare of the union itself. And in turn labor unions are free to promote partisan causes to an effectively captive audience and underwrite explicitly partisan political advertising. This kind of crony unionism, in which the government sanctions and promotes pulsory union monopoly in exchange for political support, perverts both the government and the unions. Each institution has a positive role in promoting mon good, but when such economic and political interests are so intimately aligned, self-interest is substituted for mon good.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Ordered Liberty and Same Kind of Different as Me
A friend at church recently loaned me the New York Times bestseller Same Kind of Different as Me, which tells the story of how a wealthy art dealer named Ron Hall and a homeless man named Denver Moore struck up a friendship that changed both their lives. I’m only half way through it, but it’s already instructive on several levels that connect to the work of Acton. Denver grew up as an illiterate sharecropper in Louisiana, an orphan who loses...
Religion & Liberty: Interview with Metropolitan Hilarion
For Syria’s Christians, it’s a time of great peril and uncertainty. Over the Holy weekend, one Christian in Syria summed up the situation in The New York Times: “Either everything will be O.K. in one year, or there will be no Christians here.” In Religion & Liberty, Metropolitan Hilarion gives considerable attention to the plight of Christians in Syria and the Middle East. On ecumenical relations, the Metropolitan also talks about the obstacles of a united front for Christianity because...
Divine Creativity in Business, Art, and Everything Else
The High Calling recently posted a helpful video about creativity in the workplace, drawing insights from innovation consultant Barry Saunders. Saunders notes that, despite our tendency to think of creativity onlyin terms of artistic expression, creativity is simply about “building ideas.” Pointing to Genesis, he observes that God gave us a clear directive to “go create things,” offering us a “foundational understanding of what we were meant to do and how we were meant to spend our days.” But getting...
Why Economists Should Learn From Theologians
Economists did not need psychology to tell them that people can act irrationally and unjustly, says Michael Hendrix. They just needed to listen to theologians: Why don’t we study the links between the two fields?Both economists and theologians operate on the basis of certain fundamental beliefs on the nature of humanity. They are subjects under the sway of irrationality. They are both,as Michael Jinkins put it, “in the business of constructing belief systems based on faith assumptions, and both of...
Fr. Gregory Jensen on American Individualism and Orthodox Asceticism
Today at Ethika Politika, Fr. Gregory Jensen, a contributor to the PowerBlog as well as other Acton publications, explores the potential of the Orthodox Christian ascetic tradition as a response to the paradox of American individualism: e to know each other in our uniqueness “only within the framework of direct personal relationships munion…. Love is the supreme road to knowledge of the person, because it is an acceptance of the other person as a whole.” Unlike the more theoretical approaches...
Good News About Millennials, Work, and the Resurrection
Millennials (born 1982-1994) often get a bad rap for being narcissistic and difficult to employ. However, according to new research by Ranstad, today’s young adults have more mon with those born before 1946 (mature workers) with respect to positive workplace sentiments than any other generation alive today. According to the research, When asked about their feelings toward their current job, millennials and mature workers responded more favorably than other respondents across the board. In fact, 89 percent of mature workers...
No Man Is An Island
In the current Acton Commentary, I take a look at what I call a “modern-day Robinson Crusoe,” the survivalist Richard Proenneke of “Alone in the Wilderness” fame. But as I also note in the piece, there are some other instances of this classic shipwrecked literary device, including the TV show Lost. The basic point of these reflections munity and the human person is that no man is an island, even when they are on an island. Consider this speech with...
St. Vladimir’s Orthodox Seminary and Acton Institute: May 31-June 1 Conference on Poverty
If anyone is poor among your fellow Israelites in any of the towns of the land the Lord your God is giving you, do not be hardhearted or tightfisted toward them. Rather, be openhanded and freely lend them whatever they need. (Deut. 15:7-8) As part of its annual summer program series, St. Vladimir’s Orthodox Theological Seminary is producing a conference on poverty on Friday, May 31, and Saturday, June 1. The event, held on St. Vladimir’s campus in Yonkers, N.Y.,...
Nobody goes to church on Easter anymore. It’s too crowded.
Explaining why he no longer went to Ruggeri’s, a St. Louis restaurant, baseball legend Yogi Berra said, “Nobody goes there anymore. It’s too crowded.” The same seems to be true of Easter church attendance: Nobody goes to church on Easter anymore. It’s too crowded. A survey taken by LifeWay Research last year of Protestant pastors found that 32 percent of Protestant said Easter typically has the highest attendance for worship services, with 93 percent saying it is in their top...
Philip II of Moscow: A Model of Christian Enterprise
Philip at the Solovki monastery In the most recent issue of Religion & Liberty, the “In the Liberal Tradition” section profiles Metropolitan St. Philip II of Moscow for his defense of faith and freedom in the face of the tyranny of Tsar Ivan IV, known to history as “Ivan the Terrible.” In contrast to Ivan, who used his power to oppress his own people, Philip taught, “He alone can in truth call himself sovereign who is master of himself, who...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved