Home
/
RELIGION & LIBERTY ONLINE
/
Right-to-Work Legislation Showing Solid Gains
Right-to-Work Legislation Showing Solid Gains
Jan 12, 2026 7:58 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
Film Screening: ‘The Kite Runner’
GodblogCon 2007 hasn’t quite started yet, but one of the privileges of attendance at this year’s conference was an opportunity to see an early screening of “The Kite Runner,” (courtesy Grace Hill Media) directed by Marc Forster (who has also directed “Stranger than Fiction” and “Finding Neverland”). The film is based on the best-selling novel by Khaled Hosseini. Michael Medved helped to host the event late last night, introducing the film and as a special treat leading a Q&A session...
The Few, The Proud, The Marines
U.S.M.C. War Memorial Last summer I visited the National Museum of the Marine Corps in Quantico, Virginia. It is an impressive and moving tribute to the U.S. Marines, focusing especially on WWII to the present War on Terror. There was an even a section which chronicled the transformation of young recruits to Marines who embody the virtues of “honor, courage, mitment.” David Zucchino of the Los Angeles Times has written a piece titled, “From Boys to Marines.” The article is...
Harry Reid, Fiscal Conservative
Sophisticated followers of politics such as the readers of PowerBlog will not be surprised by this story, but I’ll bring it to your attention anyway. The US House recently passed a bill that includes a dramatic tax increase on mining businesses. Supporters argue that the tax helps reign in the environmentally abusive mining industry. Higher taxes. Environmental concern. Senate Democrats would be scrambling to get on that bus, right? One problem: Majority Leader Harry Reid is from Nevada, whose economy...
GodblogCon Radio Roundtable
On Hugh Hewitt’s radio show yesterday, he hosted a roundtable discussion with folks at this year’s GodblogCon (link here). After Hugh interviews Mark Steyn, Hugh has Michael Medved, Al Mohler, John Mark Reynolds, and Mark D. Roberts to discuss the conference and the significance of new media for Christian cultural engagement. ...
New Blog of Note: The Immanent Frame
A new blog has been added to our blogroll sidebar (along with a much-needed round of housecleaning on old and out-of-date links). Announcement below: The Social Science Research Council is pleased to announce the launch of The Immanent Frame, a new SSRC blog on secularism, religion, and the public sphere. The blog is opening with a series of posts on Charles Taylor’s A Secular Age, including recent contributions from Robert Bellah, Wendy Brown, Jose Casanova, Elizabeth Shakman Hurd, and Colin...
‘The New Fellow Travelers’
In the Washington Post, Anne Applebaum takes a look at Hugo Chavez, president of Venezuela, and his worshipful celebrity fans in the United States. Here’s the key paragraph from her column, The New Fellow Travelers: In fact, for the malcontents of Hollywood, academia and the catwalks, Chávez is an ideal ally. Just as the sympathetic foreigners whom Lenin called “useful idiots” once supported Russia abroad, their modern equivalents provide the Venezuelan president with legitimacy, attention and good photographs. He, in...
GodblogCon 2007 Day 1
Today was a pretty full day that just wrapped up a few minutes ago. Al Mohler, president of the Southern Baptist Theological Seminary in Louisville, KY, opened up the day with a keynote address, “Pioneering the New Media for Christ.” Mohler emphasized municative mandate of the Christian faith: “To be a Christian is to bear the responsibility municate.” Setting this statement within the context of stewardship, Mohler emphasized the biblical foundations for a Christian view munication. In creation God made...
The Greatness of America
Here is a fantastic quote about America that deserves a hearing: From the very beginning, the American dream meant proving to all mankind that freedom, justice, human rights and democracy were no utopia but were rather the most realistic policy there is and the most likely to improve the fate of each and every person. America did not tell the millions of men and women who came from every country in the world and who–with their hands, their intelligence and...
Global Warming Consensus Alert: Coal is Universal!
When you think about it, NBC’s little promotional stunt on Sunday Night Football for their “Green is Universal” week is a lot like a mini-Kyoto treaty: it was an empty gesture that had no long-term impact on the problem it was trying to address, while immediately making things worse on their broadcast, and in the end the only thing it plished was to make the participants feel a bit better about themselves. They probably shouldn’t though, considering that in order...
Misguided Hop Hip Protests: Media Companies Aren’t The Problem
The New York Times reports of a well-intentioned protest by a pastor to protest the ridiculous and dehumanizing lyrics of the type of hip hop shown on networks like BET and MTV. Wearing white T-shirts with red stop signs and chanting “BET does not reflect me, MTV does not reflect me,” protesters have been gathering every Saturday outside the homes of executives in Washington and New York City. The orderly, mostly black crowds are protesting music videos that they say...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved