Right to Work

                    The liberty principle for this Freedom Friday is the simple fact that businesses - and thus employees - do better in right to work states.  In the eighth annual surveytaken by Chief Executive, 650 business leaders "were asked to grade states in which they do business" in a variety of areas such as "tax and regulation, quality of workforce and living environment."

                    The top ten best states for business were Texas, Florida, North Carolina, Tennessee, Indiana, Virginia, South Carolina, Georgia, Utah, and Arizona - all right-to-work states.  The ten worst states for business are California, New York, Illinois, Massachusetts, Michigan, New Jersey, Connecticut, Pennsylvania, Oregon, and Hawaii - all unionized states. 

                    Texas and Florida have enacted business tax and regulatory reforms, which have encouraged businesses to move to their states, while businesses are migrating out of California and New York because of higher taxes and more regulations.

                    "It may be no accident that most of the states in the top 20 are also right-to-work states, as labor force flexibility is highly sought after when a business seeks a location.  Several economists, most notably Ohio State's Richard Vedder and Harvard's Robert Barro, have found that the economies in R-to-W areas grow faster than other states, have higher employment and attract more inward migration.  Governor Scott Walker's battle with the unions in Wisconsin…, a state that edged into the top 20 this year for this first time, demonstrates that the struggle for a pro-growth agenda can be contentious.  As one Badger State business leader remarked, `Finally, Wisconsin is headed in the right direction."

                    Louisiana is a good example of the changes that can take place when government is favorable to business.  Louisiana ranked 47th in 2006, 27th in 2011, and 13th in 2012.  "'In Louisiana there is an active government push to reduce taxes and regulation and to encourage new industry to relocate to the state,' commented one chairman.  `This was valuable for one of our companies, which decided to make the state our headquarters.'  Other chiefs point to the big strides the state has made in workforce training and economic incentives.  Its economic development office is also aggressive in luring disaffected businesses from the Northeast and California."

                    Alaska is ranked 31st in 2012, the same ranking as 2011.  One of the planks approved at the GOP Alaska State Convention last month was in support of making Alaska a right-to-work state.  This report from Chief Executive shows the problems involved when states allow unions to control businesses.  The time is right for all states become business friendly by passing right-to-work laws.  When employees and businesses are not buried by union demands, there is greater freedom for growth for everyone.