Employees in right-to-work states can buy a lot more stuff with their money than their counterparts in union shop states, according to a new study from a Michigan economic think-tank.
“For example, Texas per-capita income was $37,098 but would have a purchasing power of $49,700 in the state of New York in 2007,” according to the Mackinac Center for Public Policy. “New York’s per-capita income was $47,852.”
Right-to-Work States Have Higher Incomes
A constant claim by opponents of right-to-work, whether it be from the AFL-CIO, state Democratic legislators or the president, is that income is lower in right-to-work states. But these naysayers are blinded to a paycheck reality: the cost of living.
Having a larger paycheck doesn’t matter much if you can’t purchase as much with it. Adjusting for per-capita personal income — a standard measure of a state’s wealth — the difference between right-to-work and non-right-to-work states disappears.
Consider Connecticut, the state with the highest per-capita personal income. A dollar just doesn’t buy as much in Connecticut as it does in Michigan.