Commentary on the benefits of Wisconsin Act 10
Rick Eisenberg & Will Flanders
However, the left is still working to say otherwise, so two prevalent myths deserve to be dispelled. The passage of Act 10 and “right-to-work” legislation — which gave employees in Wisconsin the same freedom to choose whether to be in the union as is enjoyed in 26 other states — did not increase income inequality or harm education in Wisconsin. In fact, close to the opposite is true.
Let’s consider income inequality first by looking at a common measure of the gap between the rich and the poor — the Gini coefficient. It attempts to represent, with a single number, the difference between the poorest and wealthiest individuals in a particular area. State-level Gini coefficient data collected by a Sam Houston State Economics professor shows that Wisconsin’s hasn’t changed much in terms of income inequality before or after Act 10. Indeed, the state has remained more equal than the average across the United States. In other words, the claim that labor union reforms have increased inequality is patently absurd based on the data.
Contrary to popular understanding, Act 10 did not restrict the rights of unions to advocate for their members. It did, however, restrict their ability to insist upon collective bargaining — a system in which the government is obliged to negotiate with its employees. While this may sound innocuous, in practice it allows unions to influence government decision-making in a way that citizens with competing interests — say, taxpayers — may not. Under collective bargaining, public employee unions exercise outsized power on public decision making. For example, while parents across the country became more interested in opening schools following the growing consensus that it was safe to do so, teacher unions fought to prevent it. Research from our organization and others found that COVID-19 played little role in school reopening decisions — what mattered was whether there was a strong union in the area.
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