‘Capital Goes Where It’s Treated Well’

By January 28, 2007Labor Unions

Further to our post from Friday about declining union membership numbers, here’s a link to an excellent piece by the above title by Larry Kudlow. He points out that the states with the highest union density are “high tax, slow growth, population losing states,” while the states with the lost union membership are “low tax, pro business, population growing states, with strong economic growth.”

Most of this info is available in the NAM’s Competitiveness Redbook as well. Capital does tend to go where it’s treated well and states are in a fierce competition for jobs and investment. Part of labor’s challenge is how to be part of the process that attracts investment. That will require a degree of innovation and flexibility that they’ve thus far not shown, except in some very isolated instances.