People who work in Right-to-Work states Richer than Workers in Union States

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.

right_to_workApparently, the cost of living in right-to-work states is so much lower than in the union shop states that right-to-work employees have higher purchasing power.

“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.”

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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.

Read More [Mackinac Center].