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Hostess Bankruptcy: What Role Did Policy Play?

SpaceVegetable Wrote: Nov 19, 2012 7:14 PM
Typical union logic. Take all the credit when things go well, but blame "management" when things go wrong. If a company succeeds "on the backs of the workers" then it also fails "on the backs of the workers" too. You can't have it both ways, dude.

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...