Union propagandists are confusing high housing costs with ‘wealth’

For decades, bipartisan research into cost-of-living differences between states has been conducted by federal agencies and agencies. independent economist, Right-to-work states have been shown to have a lower cost of living. In technical terms, they found a strong correlation between rising costs of living and policies that allow for the firing of employees who refuse to pay union dues and fees.

The 2023 Interstate Cost of Living Index (annual Interstate Cost of Living Index) was released in February of this year. Missouri Economic Research and Information Center (MERIC), we have confirmed this.Local families and individuals 24 states still lack right-to-work laws Laws that prohibit forcing union dues and fees as a condition of employment still result in significantly higher payments for housing, utilities, health care, and other necessities.

In fact, an analysis of MERIC’s findings found that of the 14 states with the highest cost of living last year, not one had a right-to-work law. Meanwhile, as of 2023, 14 of the 15 lowest-cost states protect employees’ right to work.

The data for disposable personal income (personal income after taxes) for 2023 is as follows: US Department of CommerceAfter adjusting for cost of living differences, four of the top five states have right-to-work laws. On the other hand, six of the bottom seven states do not have such laws.

Overall, the average per capita disposable income in right-to-work states last year was $59,329, adjusted for cost of living, about $2,800 higher than the average for other states.

It should come as no surprise to anyone that right-to-work states enjoy a purchasing power advantage of more than $11,000 per year for a family of four over states with forced unionization. . Economist Richard Vedder explains: in the new york times In 2015, “capitals will move to right-to-work states with more stable working conditions, thereby increasing demand for labor and ultimately increasing incomes and wages.”

Although Mr. Vedder is a supporter of right-to-work laws, his central point that exclusive unionism is associated with lower corporate investment in physical capital and research and development continues to resonate in modern times at Harvard. It is accepted by economists in all fields, including universities. Richard FreemanHe is perhaps America’s leading academic advocate of Big Labor and the special privileges it enjoys under US labor law. And there is no known economic theory that explains how reduced business investment leads to higher living standards for workers.

Nevertheless, many academic allies of union leaders continue to argue that bringing workers together into unions actually makes workers’ lives better. One such recent initiative is important amount of media attention It is ongoing studyupdated by Big Labor’s team of academics in March of this year, union-funded Center for American Progress.

The study’s main claim is that union households are, on average, $100,000 wealthier than non-union households. To achieve this result, CAP stacks the deck in several ways. First of all, you don’t even have to deal with the problem. evidence — Again, based on government and bipartisan research, after-tax incomes are higher in right-to-work states, after adjusting for cost-of-living variations between states.

They even argue that the exorbitant housing costs borne by residents of forced-union states like California and New York are actually good, not bad, for workers and their families. Simply put, their treatment of wealth effectively turns high housing costs into a positive rather than a negative.

of National median For an existing home, it’s $387,600, but this number varies widely by state. The Golden State’s median salary is $793,600, more than twice the national average and the highest in the nation. Homes in the Empire State are also very expensive, with a median price of $649,000, higher than in 47 other states.

Exorbitant housing costs in California, New York, and many other states with no right to work originate from “Costly mandates and inadequate policies” make families worse off, not better off.That’s why so many families flee those states In recent years, growth has slowed in some of these states, leading to actual population declines in others.

But if CAP’s analysis is correct, states that are clearly unfriendly to the middle class will be ideal places for middle-class families to “build their wealth.” What CAP’s research really shows is how out of touch with reality those who advocate forced unionism are.

Stan Greer is a senior fellow at the National Institute of Labor Relations.