Your Survival Guy

Preparing your investments and family for when disaster strikes.

Disclosure

This State is Open for Business, Here’s Why

By

You shouldn’t have to join a union if you don’t want to. But that’s exactly what happens to teachers in states that don’t have right-to-work laws.

A friend on mine who is a history teacher in non-right-to-work Boston, Massachusetts complains about the dues automatically deducted from his paycheck. He has stood up in meetings to complain about the lack of freedom.

When Becky and I see him and his wife on Friday in Boston, I’ll tell him that there’s still hope. Teachers in Wisconsin, thanks to Governor Scott Walker’s reforms, have a choice whether to join or not. They have voted with their feet/wallet, gutting public sector union membership—now comprising 8.3% of workers in Wisconsin, down from 14.2%. Isn’t freedom great?

Expect the GOP to roll out right-to-work laws in the months ahead especially now that they will control the state houses and legislatures in 30 states in 2017. The cozy relationship between our elected politicians, public sector unions, and your tax money, needs to be broken. There is no better example than the work done by Walker of Wisconsin. The Badger state is open for business, as explained here in the WSJ.

Union reforms and right-to-work laws aren’t the only drivers of economic growth, but they do attract many businesses that won’t consider operating in states without them. The reduction in union power has stabilized public finances that were spiraling upward. This in turn gives businesses confidence that they won’t be hit with tax increases year after year, a la Illinois, Connecticut and other states where politics is still dominated by the nexus of public-union donations and government officials.

In 2016 Forbes ranked Wisconsin the 27th state in the country for business, up from 40th in 2011. A survey of CEOs by the Wisconsin Chamber of Commerce found that 84% say the state is heading in the right direction.

In 2011 Mr. Walker’s union reforms and the public Battle of Madison looked like a huge political risk. This year the GOP added two seats to its state Senate majority, which is now 20-13, and one in the Assembly (64 to 35). Break up the duopoly of politicians and government unions, and good things can happen.

rtw-targets2017

According to the National Right to Work Committee, New Hampshire, Kentucky and Missouri are the most likely next states to gain Right to Work status.

The following two tabs change content below.
My Twitter profileMy Facebook profileMy Instagram profile

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com