The NLRB, though, would be more than happy to see Boeing forced to move its production line back to Seattle. It “wants to force companies to invest in highly unionized states, even when they have hostile business climates,” Sherk and Hederman point out.
This may play well with union bosses, but it would be bad news for the economy. If government prevents businesses from making good investments, they will invest less. Studies show that unionized employers create fewer jobs than non-union employers. We can see in Boeing’s case why.
If the NLRB succeeds, don’t expect the business investment figure cited above to improve. It’ll go from bad to worse -- and the whole economy will suffer.
But it doesn’t have to be this way. Some states, yes, responded poorly to the recession. They raised taxes, hiked spending and assumed more debt. And their job growth has been anemic. Other states, though, took a smarter path. The American Legislative Exchange Council’s report “Rich States, Poor States” notes that low-tax, low-spending states such as Utah, Colorado and Arizona are creating jobs and wealth in much greater numbers.
Texas has taken this approach -- and has been a phenomenal job-creator: Over the last five years, according to the Texas Public Policy Foundation, employment growth there has surpassed that of all other states combined.
Want the business investment figure to climb? Follow Texas, not the NLRB.
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