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Hostess Bankruptcy: What Role Did Policy Play?

Jkerouack Wrote: Nov 19, 2012 1:29 AM
The conservative view of a free market: a lone individual negotiating his wages against a conglomerate! What planet are you on?
SpaceVegetable Wrote: Nov 19, 2012 7:34 PM
Some of us do just fine without unions to p i m p for us. Are union workers so incompetent that they can't negotiate for themselves? And they think they deserve big bucks? No wonder they pull idiotic moves like this.
ReddestNeck Wrote: Nov 19, 2012 7:11 AM
And many many "conglomerates" vying to hire him... what solar system are you on?

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...