News
New Report Confirms “Right to Work†Would Harm Missouri’s Middle Class
Report warns of severe economic losses, higher poverty rates
Recently, Dr. Michael Kelsay, an economics professor from the University of Missouri-Kansas City, conducted a study in which he examined the economic impact that proposed “Right to Work” laws would have on the state of Missouri. His conclusions confirm that “Right to Work” would have a devastating impact on Missouri’s economy and hurt Missouri’s middle class families.
Highlights from Dr. Kelsay’s study include:
- “Right to Work” would result in an economic loss of between $1,945 and $2,547 annually per household for Missouri families.
- Missouri workers combined would lose between $4.58 and $6.0 billion annually as a result of lower wages.
- State, local, and county jurisdictions would lose between $82.14 and $107.56 million annually in lost sales tax collections as a result of lower wages.
- The State of Missouri would lose between $137.28 and $179.89 million annually in income tax revenue as a result of lower wages.
- “Right to Work” states had a higher percentage of their population living below the poverty level in 2012 than states without these laws
- “Right to Work” states had lower per capita GDP growth in 2012 than states without these laws.
- “Right to Work” is not an important factor for where businesses decide to locate.
Dr. Kelsay’s study indicates that states which implement “Right to Work” laws do not experience an influx of business relocations or economic benefits.
If Missouri became a “Right to Work” state, middle class workers would see their incomes shrink, and state, local, and county governments would lose millions in tax revenue due to these lower wages.
It is clear that “Right to Work is WRONG for Missouri families.
Paid for by the Committee to Protect MO Families, Martin Walter, Treasurer