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Economy
A shot to NH: Sturm, Ruger and right-to-work
2013-07-12
[UNIONLEADER] Opponents of making New Hampshire a right-to-work state said incessantly that it would hurt the state economically. This week another manufacturer, this one based in New England, chose to expand in a right-to-work state instead of in New Hampshire.
Their license plates used to say "Live Free or Die." Then they were inundated by hippies and lefties and such. They stopped living free. Now they'll die economically.
Connecticut-based Sturm, Ruger & Co., spent months openly seeking a location for a new manufacturing plant to supplement its existing operations in Arizona and Newport, N.H. "We had a number of criteria for expansion, and we did not find anything in New Hampshire that we thought was suitable," Kevin Reed, general counsel and vice president for Sturm, Ruger, said. "Right-to-work state was one of our criteria," he added.

Imagine that. A large, successful, American manufacturer wanting to operate in a state where employees could not be compelled to join a labor union or pay it tribute in the form of "association fees."

In the last legislative session, the House Republican leadership made a strong push for right-to-work. It was defeated by Democrats and pro-labor Republicans, who claimed fatuously that it was really the "right to work for less." Ignoring the fact that wages in Southern and Western states were lower on average than in Rust Belt states before right-to-work laws, opponents suggested that the laws caused lower wages. Wages do tend to be slightly lower in right-to-work states, but after cost of living is taken into account the gap narrows, or even vanishes.

What is unquestionable is that right-to-work states see higher rates of job growth. The Wall Street Journal reported in December that "private employment has grown 4.9% in right-to-work states over the past three years, versus 3.9% in other states, according to an analysis of Labor Department data. This disparity is particularly stark in the factory sector: Manufacturing employment has grown 4.1% in right-to-work states over the past three years, compared with less than 3% in other states."It is unlikely that right-to-work would significantly depress wages in New Hampshire. It is highly likely that it would increase employment. In the meantime, companies like Sturm, Ruger continue to move South.
Posted by:Fred

#8  Lefties and hippies? You are thinking of Vermont, not NH. Granted a little of the Boston brain cancer has creeper in, but mostly you're looking at Vermin Supreme politics in hill country
Posted by: regular joe   2013-07-12 15:15  

#7  >And wages don't go up when a particular sector of the economy is flooded with cheap unskilled labor

In fact this causes rents to rise so it actually lowers the effective wages of low earners.
Posted by: Bright Pebbles   2013-07-12 12:40  

#6  It was defeated by Democrats and pro-labor Republicans, who claimed fatuously that it was really the "right to work for less."

Otherwise known as the 'Free Market'.
Posted by: CrazyFool   2013-07-12 12:29  

#5  Opponentsof making New Hampshire a right-to-work state said incessantly that it would hurt the state economically.

States with Right-to-work laws don't bear that out.
Posted by: JohnQC   2013-07-12 11:50  

#4  Yasss, the Democrats are against low wages, which is why they're voting for the Gang of Eight Immigration Bill...
Posted by: Steve White   2013-07-12 10:55  

#3  And wages don't go up when a particular sector of the economy is flooded with cheap unskilled labor. The action yesterday by the DC council to raise the minimum wage is simply an indicator of that issue. You don't have to raise pay artificially if the supply is not debased by adding vast numbers to the labor pool. However, when your goal is really power, that is never a consideration to the natural order of things.
Posted by: Procopius2k   2013-07-12 07:52  

#2  Only competition to employ people increases wages.
Posted by: Bright Pebbles   2013-07-12 07:47  

#1  So where are they going to go? Mayodan, North Carolina
Posted by: Bobby   2013-07-12 06:41  

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