The Wrong Role Model

Let’s get real: if so-called “Right to Work” laws generated economic growth, Mississippi would be an epicenter of economic activity.

As Brian Howey notes, the current push for Right to Work is simply a continuation of the war on unions Daniels inaugurated soon after he himself was inaugurated; the sorts of jobs Indiana has been trying to grow–life sciences, biotech, etc.–aren’t union jobs anyway. But if we were to take Governor Daniels and Speaker Bosma at their word, their argument boils down to the contention that creating a “good business environment” requires that we be a low-wage,  low tax state.

A story may be instructive: Several years ago, Toyota was negotiating with three such states (all in the south) to locate a new plant. The states in question all had low wage workforces and low taxes; in addition, all were offering tax incentives. Toyota ended up going to Canada, and the economic development officers of the losing states were dumbfounded, because taxes were higher and no incentives were involved. Toyota’s explanation? The workforce was much more highly educated, and thanks to Canada’s “socialized” system, they wouldn’t need to provide healthcare.

When you look at independent research on right-to-work laws (i.e., research not sponsored by/paid for by either unions or Chambers of Commerce), there is absolutely no evidence that such laws affect job growth one way or the other. Once you control for the other factors that affect economic conditions, it appears that the only effect of such laws is to lower wages for both unionized and non-union workers.

The “liberty” argument for right-to-work is that no one should have to join a union in order to work. I agree–and under current law, they don’t. They do have to pay for services rendered by the union that benefit them–that is, their share of the cost of negotiation for wages and working conditions. That’s it. They don’t have to become a member, or support any other activities with which they disagree. The “liberty” argument against right-to-work is that employers should be free to bargain with whomever they choose–that the state should not have the power to dictate an owner’s otherwise lawful workplace policies and arrangements.

If we really want to promote job growth and a healthy economic environment, our focus should be on creating efficient, transparent state government, high-quality public schools, good public services (especially public transportation), and an improved quality of life.

Add in workers who have enough money to spend in the marketplace, and believe me, the employers will come.

Intriguing–and Disquieting–Analysis of Citizens United

A paper delivered at the Law and Society conference I attended raised some interesting points about the Citizens United decision that I haven’t seen elsewhere. While there has been a lot of criticism of the Court’s classification of corporations as people, this presentation asked a more basic (albeit related) question: what was the “speech” that the First Amendment protected?

The author argued pretty persuasively that what the founders intended was protection of an individual right of free expression. Later courts extended that to “expressive association”–meaning the right of individuals to associate with those who share their opinions and values. Thus Political Action committees should have the right to free speech, since the very act of banding together for a political purpose is in furtherance of individual expression.

By extending expressive freedom to corporations and unions formed for very different purposes–where the individuals involved arguably had very different political views–the Court arguably was disrespecting the very individual rights the First Amendment was protecting in favor of a newly created group right. Our system, however, has explicitly rejected recognition of “group rights.” For good or ill, in the United States, only individuals, singly or in expressive association, are “rights-bearing.” Citizens United thus represents a movement toward group rights at odds with the premises of our constitution.

Food for thought.

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