Michigan

Unions outpace corporations in super PAC spending

By Justin Hegy
09/13/2013
Labor unions are losing influence, popularity and the fight over labor policy in many states. To soften their fall, unions have dramatically increased political spending. A study from the Center for Public Integrity shows labor unions have notably increased political spending nationally in the first half of 2013. During the six-month period, unions contributed $10 million to...

Labor reform continues to gain popularity

By Paul Kersey
09/09/2013
Labor law reform has been popular in a lot of neighboring states, with Wisconsin passing an overhaul of its government union law, and Michigan and Indiana adopting right-to-work. The move toward greater union accountability could pick up again if Missouri sets up a referendum on right-to-work, as it might as early as next year. Labor...

Tattered union label

By Paul Kersey
08/31/2013
Unions exist to give workers greater leverage in negotiating over compensation and working conditions, and to give them some protection from unfair treatment at the hands of management. If union officials are doing their jobs well, workers should be receiving better wages and benefits, and should be more secure in their jobs. But that’s not...

Worker freedom yields healthier economies and more jobs

By Paul Kersey
08/30/2013
Does giving workers the freedom to choose whether to join a union make a difference? A new report from the Mackinac Center – our sister think tank in Michigan – says yes, it does. Ball State University professor Michael Hicks teamed up with Mackinac’s Fiscal Policy Director Mike LaFaive to produce a sophisticated analysis of employment, income...

Cook County’s debt downgraded: pension liabilities double under Moody’s new methodology

By Ted Dabrowski
08/17/2013
Chicago’s fiscal crisis just got worse. Last month, the city received a rare triple-notch downgrade from Moody’s Investors Service, to A3 from Aa3.  Now, Chicago’s parent government, Cook County, has received a downgrade of its own. Moody’s Investors Service downgraded Cook County’s general obligation bond rating to A1 from Aa3 due to the county’s “growing...

TAGS: Chicago, Cook County, downgrade

Detroit: Then and now

08/09/2013
Back in the late 1980s I lived in northwest Detroit (at Seven Mile and Lahser) and worked downtown. I remember a t-shirt slogan that was very popular at the time: “I’m so bad I vacation in Detroit.” It was fitting. The few tourists who visited downtown saw a rundown commercial district with few shops or...

TAGS: Detroit

Alaska’s bold solution to its pension crisis

07/25/2013
Illinois has the nation’s worst-funded pensions. Each Illinois household can expect to pay more than $40,000 in additional taxes to cover the pension shortfall if no reforms are passed. The size of the pension crisis demands that state lawmakers pass the boldest reforms in the country. Fortunately, Illinois lawmakers can look to the examples other states have...

Chicago’s triple-notch credit downgrade

07/18/2013
Pension costs are already unraveling the state’s finances. Now it’s the city of Chicago’s turn. The city’s out-of-control pension liabilities and “accelerating budget pressures associated with those liabilities” has resulted in another credit downgrade by Moody’s Investors Service. The national credit rating agency downgraded the city’s nearly $8 billion in general obligation bonds to A3...

TAGS: pensions, Rahm Emanuel

Detroit goes bust

By Paul Kersey
07/18/2013
It’s official: the city of Detroit is bankrupt. The Detroit News reported that the city filed a petition for bankruptcy protection this afternoon. The city is in a severe economic crisis and simply lacks the ability to raise sufficient taxes to pay its mounting bills. The city’s population fell more than 26% from 2000 to 2012 and...

Right to Work gives states a competitive advantage

07/14/2013
by Paul Kersey CNBC released its rankings of the friendliest states for business last week. Illinois dropped further down the list, but one nearby state is climbing, in large part because its elected officials passed a Right-to-Work law. CNBC’s Scott Cohn took notice, reporting that the Michigan moved from 33rd to 29th. CNBC’s rating of the state’s...