Friday, 27 January 2006
A Kentucky Right to Work Law Would Create New Jobs
A recent study by William Wilson, the chief economist for Keystone India, estimated that a right to work law in Kentucky would create 3500 new manufacturing jobs in Kentucky over the next 10 years. These manufacturing jobs would generate an additional 6000 jobs to support these new workers. The report states that these nearly 10,000 new jobs would generate $428 million in personal income which would result in $30 million in new tax revenue. That is a lot of money.
Why would these new jobs be created? Because 30 percent of companies looking for a new location refuse to move to states without a right to work law. Simple math demands that if you grow the pool of companies willing to move here, you will get more companies actually coming here. An increase in new companies will mean an increase in new jobs.
To illustrate the point, let's say there are 100 companies looking to move. Currently only 70 of them would even consider coming here. Now let's say we can lure 10% of the companies to settle in Kentucky. Without a right to work law we would get 10% of 70 we would end up with a net gain of 7 companies. With a right to work law the pool of potential companies would grow to 100. If we can get 10% of the 100 we would end up with a net gain of 10 companies. In this example the right to work law would lead to an additional 3 companies moving to Kentucky. It is safe to assume that this would mean more jobs for Kentucky.Unfortunately, the Union leaders in this state are using distorted and perverted logic to fight a right to work law."This whole document is illogical and it really bears no resemblance to reality," said Bill Londrigan, president of the Kentucky State AFL-CIO.
In particular, Londrigan took issue with the study's conclusion that workers in right-to-work states have higher incomes.
After making cost-of-living adjustments, the study finds that families living in right-to-work states have $2,852 more in after-tax purchasing power each year.
"Why would the Kentucky Chamber of Commerce and AIK (Associated Industries of Kentucky), which have opposed even a small increase in the minimum wage, be so interested in doing this if it actually raised wages?" Londrigan asked.
Londrigan argument is completely vapid! Companies are against a minimum wage increase because it lowers everyone's income but a small handful at minimum wage level. In addition, it destroys minimum wage jobs. On the other hand the new jobs created by the right to work laws would be good paying jobs that will raise the standard of living in Kentucky. But logic won't stop the union's from opposing such common sense legislation.
What do the Democrats have to say about a right to work law?
Right to work legislation will not likely be heard in the House Labor and Industry Committee, said Chairman J.R. Gray, D-Benton.
"Most of the members of the committee don't want to deal with this," he said.
Of course they don't want to deal with it. They know that if such a law is introduced it would easily pass. It makes too much fiscal sense to vote against it. But they don't want to hurt their precious union support. And once again the everyday Joe is hurt from wrong headed liberal politics.
