The Costs of Unions

International_Broom_and_Whisk_Makers'_UnionThe economic performance of states that supports unions has lagged the economic performance of states with “Right to Work” laws. Over the last 10 years manufacturing output was stagnant in union states but increased by more than double digits in the Right to Work states, even when you exclude Michigan and Indiana which have recently passed Right to Work laws. Right to Work states continue to gain jobs and higher wages relative to union states.

A new report finds that unions cost individuals as much as $10,000 each in the strongest union states.

In “The Unintended Consequences of Collective Bargaining,” authors Lowell Gallaway and Jonathan Robe rank the states according to the negative impact unionization has had on each state’s economy over the last 50 years.

Similarly, when looking at overall state economies over this period, the authors show a reduction in state economic growth as high as 10-12 percentage points in some states.

The top five “worst” states were: Michigan, Alaska, Nevada, New York, and Hawaii. The five states that fared best were: South Carolina, North Carolina, Mississippi, South Dakota, and Texas.

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