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Manhattan Institute senior fellow Steve Malanga on Michigan on the verge of becoming the nation's 24th right-to-work state.
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Peter Peter Barnes and Washington well as the president ensures that auto plant -- Peter was talking about in Detroit groups of union workers expected to continue their protests.
Against Michigan becoming the nation's 24 right to work states.
-- get -- senior fellow at the Manhattan institute joining us now we should point out this just gives people.
The option.
Of opting out from paying union did this that is all that it does.
But the governor said he wasn't gonna take on this divisive issue and lo and behold.
He's willing to sign it when it shows upon his death.
Big -- -- not.
Well it is but you have to understand the context here the governor the governor wanted -- didn't want the kind of confrontation with unions difference -- -- saw in Wisconsin right however unions put.
On -- A referendum on the November ballot saying we want to constitutionally.
Banned the idea of -- to work ever in -- in addition to that.
Unions defeated for governor one of the governor's.
Favorite.
Laws which is this emergency manager law which -- trying to used to desperately save Michigan cities that are in trouble including Detroit so the governor.
Got upset -- -- expect that very construction.
I I would remember where McConnell actually look at this guy's hand was forced that is achieved it your view exclusive chat I had say they put us but back against the wall but the -- -- He admitted he wouldn't have done and if it wasn't for that value is vitally upset about the of the defeat of the emergency managers law the idea that he is supportive of Indian mission can he take a step back for just gonna -- yeah.
-- -- -- We have these shores all the time are -- is the united movements.
You know as an old -- and that is the tide turning against that this is Michigan.
Well you're right a couple things first of all the second biggest organizing drive in American history of the UAW organizing.
Just GM 9037 in the -- 7000 workers and we like that yes you're right.
-- and today even with the decline in unionization.
A private sector unionization in Michigan is about like.
Thirteen 14% which is about double the national -- -- -- do you have some areas like manufacturing almost 20%.
So yes it it it is this is not for instance in southern states -- you have right to working effectively don't have unions anyway.
Very big difference Indiana Michigan guys in this direction -- right to work doesn't have a wider impact of the continue to spread.
Well I I think -- -- -- submitted 24 state that's not even half yes but it's never gonna happen in California it's never gonna happen in New York it's never gonna happen in a place like New Jersey those places just don't have the legislature or.
You know what to do it -- that are gonna pass -- -- let's let's be realistic about the we have to do look at a map of America a presidential not voting -- macro and you would understand that so there are limits to how far will spreads so what is the significance seven what does it mean to you.
Well here's a thing.
You know what's going on right now is we have -- really historic battle among the states of competitive battle to battle over tax rates.
Because you know -- talk about tax increases in places like Illinois California you've got places like Kansas Wisconsin Louisiana cutting tax rates to -- with.
And and because business investment is so stingy right now this battle is really historic this is part of that battle and I think we're gonna see more winners and losers among the states in the coming years right to work in Michigan -- -- help growth Buckeyes right to work states over the last decade have grown faster whether it's the economy payrolls population.
It's an important component on the tax rates are another important component -- -- for at this particular point right now especially.
And it's going to be more so I think going forward with a with what's happening in Washington with taxes there because this and as -- Stewart was just kidding about before the combination.
Of collecting California State estate tax rates and federal tax rate really getting onerous so I think it's a it's a component of that certainly there's no one thing is -- -- as Peter points one out.
In the state how involved defeat or at him will he get involved in this at all.
Going forward -- present what -- what -- his involvement be.
Rob you while you're -- -- -- is is within my right now he's only a boy -- -- -- having here's the thing is it you know he's -- of all places that he could go and America they'll discuss the fiscal cliff he opened -- What is -- -- -- getting this right.
-- and it's not only about it's not only about this it's also about the fact that Detroit is an insolvent Citi.
You -- members of the City Council Detroit last week saying the president needs to bail -- out.
They knew that that what I look this is so I think it's I think it's very telling where he went today hard Steve it's always good to see you into thinking what -- -- a hundred at a man.
