Posts Tagged ‘Southern states’

Scott Walker’s Southern economic strategy

February 25, 2015

right-to-work-2Gov. Scott Walker of Wisconsin is pushing through a right-to-work law, which gives workers protected by union contracts the right not to pay union dues.

It is part of an economic strategy copied from Southern states such as Alabama—to attract branch plants of industries headquartered elsewhere by means of low taxes, low wages and no labor unions.

The price of the strategy is low educational levels, low public services and deteriorating infrastructure—all the things that make a state attractive to entrepreneurial, high-tech and high-wage enteprise.

I think the Walker strategy is a bad one because Wisconsin can’t out-impoverish states like Mississippi, and the USA as a whole can’t out-impoverish nations like Bangladesh.  Even if we could, would we want to?

What we Americans as a nation need to think about is how to add value, and how to distribute the benefits among the working people who create value.

Scott Walker has been a highly successful politician, and looks to be a strong presidential candidate, by distracting attention away from these questions.   Instead he encourages people who are floundering economically to focus their resentment on their neighbors who still have union jobs and good wages, and away from the tiny economic elite who benefit from the low wage, high unemployment economy.

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