Home
/
RELIGION & LIBERTY ONLINE
/
Right-to-Work Legislation Showing Solid Gains
Right-to-Work Legislation Showing Solid Gains
Feb 24, 2026 4:27 AM

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
The truth about Cuba’s health care system
When Fidel Castro died last week many on the political left embarrassed themselves by praising the despot. A prime example is Canadian Prime Minister Justin Trudeau who was excoriated for saying that Castro was a “legendary revolutionary and orator” who made “significant improvements” to the healthcare system of his country. There are few modern myths the have been debunked as frequently yet have been accepted as incredulously as the idea that Cuba has a superior (or even adequate) health care...
Samuel Gregg: Protectionism harmful in the long run
In a new article at The Christian Science Monitor titled “Can ‘economic nationalism’ keep more jobs in US?” Acton Director of Research Samuel Gregg is interviewed about President-elect Donald Trump’s stated goal of keeping jobs and businesses from leaving for foreign countries.In the analysis piece by reporter Patrik Jonsson, he cites Gregg as a critic of protectionism: In short, the United States cannot step back from the world without losing out, critics say. Trump’s plans are in the short-term “likely...
What’s next for religious freedom?
Olivier Douliery/Getty Images In a new article for the Catholic Herald, Philip Booth outlines the next battle in the fight for religious freedom. The professor of finance, public policy, and ethics at St. Mary’s University, Twickenham, writes that “liberal elites are paying the prices for sidelining” this important freedom. He argues that while there are definitely threats to religious liberty in the United States, the rights to religious liberty and freedom of association are in far more danger in Europe....
What happens when the government ‘forgives’ $108 billion in student debt?
To reduce the number of people defaulting on student loans, President Obama has been promoting e-driven repayment plans. The most widely available e-driven repayment plan for federal student loans—the e-Based Repayment (IBR) plan—provides payment caps based on a borrower’sfamily size and e (150 percent of the poverty level). After making 25 years of these reduced payments, the remaining debt is “forgiven.” (If you work for the government or a non-profit the remainder may be forgiven after 10 years.) This may...
Unemployment as Economic-Spiritual Indicator — November 2016 Report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Profits and an ‘economy of mutuality’
“Money is often seen as intrinsically bad or perhaps a necessary evil in the world,” says Tom Nelson. “However, we must not forget the important role money plays in wealth creation and in facilitating the efficient exchange of goods and services.” Money and the trade it makes possible further mon good and greatly enhance our ability to love our neighbors — both local and global. Christian philosopher Dallas Willard reminded us, “Business is an amazingly effective means of delivering God’s...
Paul Bonicelli on Trump’s Carrier deal and upcoming economic priorities
Paul Bonicelli, Director of Programs at the Acton Institute, appeared on CNBC’s Closing Bell on Thursday afternoon to discuss President-elect Donald Trump’s deal with Carrier to keep 1,000 jobs in Indiana, and to offer analysis of the potential economic priorities of the ing Trump Administration. You can view the interview below. ...
Lessons from Poverty, Inc.
“An underlying theme in basic economics says, ‘offering a product for free can destroy the local economy’” writes Luis Miranda. Miranda recently watched Poverty, Inc and since seeing the award winning Acton Institute documentary he has shared some of its lessons in an article at The Indian Economist. He begins by explaining how often times aid can harm its recipient more than help them. A farmer in Rwanda goes out of business because he pete against an American church sending...
Global elites put Christianity in the crosshairs
Global governance ideology is the intellectual stepchild of Marxist materialist thought, says Robert F. Gorman in this week’s Acton Commentary. The term global governance refers to the political dimension of globalization. Here the question is to what degree governance will be centralized and controlled by international institutions in ways that threaten to diminish national and local governmental capacity. Global governance advocates tend to prefer both transnational regulation of markets and the creation of new human rights norms marked by increased...
Kings without a king: Kuyper on the illusion of independence
“A human kingship imperceptibly came to power, leaving no place for the kingship of Christ.” –Abraham Kuyper The West prides itself on valuing freedom – political, economic, religious, and otherwise. For some, this leads to the promotion of a certain brand of libertinism: the freedom to do what we want. For others, such as Lord Acton, “Liberty is not the power of doing what we like, but the right of being able to do what we ought.” For the Christian...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved