In response to:

Hostess Bankruptcy: What Role Did Policy Play?

Bulwark Wrote: Nov 19, 2012 2:30 PM
" But the so-called leaders, the parasites who prey on both their members and the taxpaying public..." There-in lays the problem. The union bosses, primarily the bosses of the huge national unions. The smaller, local, public employee unions just want a fair shake. This is a big issue, and cannot be intelligently discussed unless broken down into specifics. Anyone with an ounce of sense recognizes that there is a symbiotic relationship between employers and employees. Robber baron style corporations and unrealistic union rules/demands poison the well. But unfortunately, without a union, the corporations will not play fair. Empirical this is a truism.

The demise of Hostess and Twinkies is not a national emergency, but it is certainly sad when a major business goes under and thousands of people lose their jobs.

If federal and state policymakers want to play a useful role here, they should study why Hostess couldn’t make a go of it. Were there tax or regulatory factors that stood in the way of the company earning a decent rate of return?

Unions were an important factor that pushed up the firm’s costs and reduced its operational efficiency. The policy reform here is obvious for people who appreciate market economics: repeal America’s coercive union laws. If policymakers don’t...