from Dollars & Sense:
Wrong About Right-to-WorkLaffer throws another curve-ball.By John Miller
Boeing and the Union Berlin Wall
Two policies have consistently stood out as the most important in predicting where jobs will be created and incomes will rise. First, states with no income tax generally outperform high income tax states. Second, states that have right-to-work laws grow faster than states with forced unionism.
As of today there are 22 right-to-work states and 28 union-shop states. Over the past decade (2000–09) the right-to-work states grew faster in nearly every respect than their union-shop counterparts: 54.6% versus 41.1% in gross state product, 53.3% versus 40.6% in personal income, 11.9% versus 6.1% in population, and 4.1% versus -0.6% in payrolls.
The Boeing incident makes it clear that right-to-work states have a competitive advantage over forced-union states. So the question arises: Why doesn’t every state adopt right-to-work laws?
—Arthur B. Laffer and Stephen Moore, Wall Street Journal op-ed, May 13, 2011
What do you get when you mix a Wall Street Journal editorial writer with a supply-side economist?
That’s right: more of the same.
This time, however, it’s right-to-work laws, not taxes, that come in for the full Laffer treatment (although without the illustration on the back of a cocktail napkin).
In May of this year, the National Labor Relations Board (NLRB) issued an injunction to stop defense giant Boeing from moving a jet production line from its unionized factories in Washington state to right-to-work South Carolina. The International Association of Machinists & Aerospace Workers union had filed a complaint that the planned move was in retaliation against strikes the union conducted over the last decade, and thus illegal. ...........(more)
The complete piece is at:
http://www.dollarsandsense.org/archives/2011/0711miller.html