Sunday, July 27, 2014

Right to Work in Michigan? Believe It

Michigan Capitol Confidential, the news service of the Mackinac Center for Public Policy reports on the impact of Michigan becoming a right to work state.
When Michigan passed right-to-work in December of 2012, critics were quick to predict that workers’ compensation would plummet. But the early returns show that hasn’t happened.

Michigan’s per-capita personal income increased from $38,291 in 2012 (before right-to-work became law) to $39,215 in 2013, according to the U.S. Department of Commerce’s Bureau of Economic Analysis. That increase was the ninth highest in the country.
This effect might disappear if all states became RTW states. RTW's twofold advantage is it gives a state an edge in recruiting plants and jobs, and it reduces the incentive for its employers to move elsewhere.