In response to:

Hostess Bankruptcy: What Role Did Policy Play?

wschimpf Wrote: Nov 19, 2012 12:58 PM
$100.an hour in pay and beneflits?? The average benefit package is 1/3 of the total package. That would put their hourly rate at $66.34. Wow, $530.72 a day. That explains it. Idiot.

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...