Unions cost jobs

The claim that unions cost jobs isn’t new. We see it most prominently when contract negotiations are underway. Mayors and Councils warn that if concessions aren’t made, jobs will be lost.

But now there is empirical evidence that unions cause a reduction is jobs in less direct manners.

Investor’s Business Daily tells us about a National Bureau of Economic Research study that shows when a business becomes unionized they loose an average of $40,500 in stock value (1998 dollars). Bump that up to 2009 dollars and its close to the average wage in RI (approx $47k).

The union mentality is much like the federal government mentality – they don’t understand that ever dollar they take out is a dollar NOT creating jobs. And if anyone thinks that the government can take tax dollars and pass it along for job creation without taking it’s vig (call it overhead), then they have been living in a cave (or university).


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s