In response to:

Hostess Bankruptcy: What Role Did Policy Play?

Nevirim Wrote: Nov 19, 2012 9:42 AM
Hostess is out, regardless of "Sugar" and 18000 employees are unemployed. Now the Government has to pay more in unemployment benefits. Is this going to come out of the Unions? Are they going to find new jobs and new business for those who are out? Do these people continue to pay Union while they seek for other jobs? And what happens if they find another job and its "Non Union?" Are they "Black-balled" as Traitors to the Unions? There are a lot of question that "should be answered" but probably will not be answered. I am sorry that Hostess lost the fight but this is only an indication of the times that face us all.

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...