The Dangerous PRO Act Would Destroy the Economy as We Know It

The Dangerous PRO Act Would Destroy the Economy as We Know It

By the Free Enterprise Club |

Unions are in decline in America, and it’s no surprise as to why. Most do not offer any sort of value to the overwhelming majority of workers.

You would think they could take a hint. In 2017, workers at Nissan in Mississippi and Boeing in South Carolina rejected union representation by a wide margin. In 2019, Volkswagen employees in Tennessee voted against unionizing for the second time in recent years. And just last month, employees at an Amazon facility in Alabama largely rejected joining the Retail, Wholesale, and Department Store Union.

So, what solution has labor unions come up with? Will they focus on bringing more value to members or potential members? Will their leadership stop supporting liberal and other far-left causes? Will they stop pushing socialist policies and politicians?

Nope. Their solution is to force American workers to join unions through legislation.

H.R. 842, also known as the Protecting the Right to Organize (PRO) Act, would enact sweeping changes to the National Labor Relations Act. And it’s dangerous in 3 particular ways.

  1. The PRO Act repeals all state right-to-work laws. Currently, 27 states have right-to-work laws, including Arizona. These laws ensure workers can choose whether or not to join a union and pay for representation. The PRO Act would remove these laws, which could cause some workers to lose more of their wages and others to lose their jobs…

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Chambers Of Commerce Applaud Ducey’s “Arizona Back To Work” Plan

Chambers Of Commerce Applaud Ducey’s “Arizona Back To Work” Plan

PHOENIX — Across the state, chambers of commerce are applauding Governor Doug Ducey’s decision that Arizona will no longer be taking the Federal Pandemic Unemployment Compensation, and instead will offer one-time bonuses to returning workers, along with child care support, educational opportunities and rental assistance.

The announcement follows reports from employers that they are having trouble competing with the federal government’s unemployment payments, which are paying individuals more to stay home and not work than to find a job.

Arizona will stop taking the federal government’s pandemic unemployment benefits effective Saturday, July 10. Instead, the state will offer a $2,000 Back To Work bonus for eligible workers — with a goal of getting as many Arizonans as possible to rejoin the workforce by Labor Day, September 6, 2021.

Arizona will also provide support for unemployed individuals seeking to upskill their careers with adult education programs as well as additional child care opportunities.

“In Arizona, we’re going to use federal money to encourage people to work…instead of paying people not to work,” Governor Ducey said in a video.

“With ample supplies of the COVID-19 vaccine on hand and millions of Arizonans vaccinated, people feel safer and are finally returning to life in Arizona as we knew and loved it before,” said Ducey. “People are back in the office, restaurants are at full capacity and tourists are flocking to our state.”

“There is dignity in work. Ronald Reagan said the best social program is a job. I agree with that,” Ducey said.

“We have worked tirelessly throughout the pandemic to ensure those who were displaced received the support they needed for themselves and their families,” said Arizona Department of Economic Security (DES) Director Michael Wisehart. “Now that employers in all sectors are hiring, we’re ready to transition and enhance our assistance to families, job seekers and employers. We are committed to ensuring the long-term strength of Arizona’s economy to provide self-sufficiency for Arizona’s families.”

The Governor’s Back To Work program is garnering support from community and business leaders across the state:

“Governor Ducey is breaking down many of the barriers that prevent people from returning to work. Getting people funding for GED programs, community college, providing funding for childcare, and bonus money for their hard work is the hand up Arizonans need,” said Arizona Regional Economic Development Foundation Executive Director Mignonne Hollis.

“After last week’s disappointing federal jobs report, Arizona is implementing a common-sense, conservative plan to ensure we continue our state’s strong economic rebound,” said Prescott Chamber of Commerce President and CEO Sheri Heiney.

“Across Arizona, restaurants of all sizes are ready to hire new employees and expand their teams,” said Arizona Restaurant Association President and CEO Steve Chucri. “When it comes to the food and beverage industry, things are much different than they were a year ago. Millions are vaccinated, we know how to keep patrons and staff safe, and people are ready to eat at restaurants again. Restaurants need to ensure they have enough staff to meet the demand, but many are struggling to fill positions. I’m grateful to Governor Ducey for encouraging Arizonans to find new employment opportunities so we can get our restaurants fully staffed and continue to move the state’s economy forward.”

“We’re excited to welcome new team members and provide great jobs for Arizonans,” said Westroc Hospitality President and Chief Operating Officer Bill Nassikas. “After weathering the pandemic, we know Arizonans are looking for employment opportunities. We’re ready to hire, along with countless other businesses across the state.”

“Arizona’s tourism and hospitality industry is poised and eager to welcome visitors,” said Arizona Tourism and Lodging Association President and CEO Kim Grace Sabow. We are prepared to offer safe and unique experiences to both leisure and business travelers. An array of quality jobs are available for those seeking a rewarding industry career path — and we’re ready to hire today!”

Tax Issues Force Arizona’s Economic Outlook Ranking To Slip

Tax Issues Force Arizona’s Economic Outlook Ranking To Slip

The American Legislative Exchange Council’s latest annual Rich States, Poor States report shows Arizona’s economic outlook ranking is slipping.

Of the 15 variables the report uses for its economic outlook ranking, Arizona received poor grades for its top marginal personal income tax rate (42), state minimum wage rate (44), and sales tax burden (45).

“While we slipped three places in the ranking, are no longer in the top ten, and are approaching what could be a crisis of competitiveness, hope still remains that we can correct course,” said Chad Heinrich, Arizona state director for the National Federation of Independent Business (NFIB).

“To help small businesses the State Legislature must focus on fixing the disparate tax treatment of commercial property, reforming Arizona’s individual income tax code with small businesses in mind, and making our unemployment insurance (UI) trust fund solvent without raising taxes on Main Street enterprises, the latter of which is not measured in the Rich States, Poor States report,” said Heinrich.

The NFIB poll released yesterday showed an increase in small business optimism over the previous month’s increase but keeping the small-business economy from soaring is the drag of record highs in unfilled job openings.

“Gov. Doug Ducey’s signing of liability protection legislation will help Arizona’s small businesses open with confidence as we return to pre-pandemic business operations, as will Arizona conforming with several small-business-focused tax provisions in the federal CARES Act. The two big questions Main Street entrepreneurs have are: Will they be hit with a double whammy if the legislature increases unemployment taxes while UI rates have also increased due to the pandemic and how deeply would a federal effort to raise the minimum-wage rate to $15 an hour affect their operations,” said Heinrich.

Regulatory Capture, Teacher Unions, And COVID Child Abuse/Imprisonment

Regulatory Capture, Teacher Unions, And COVID Child Abuse/Imprisonment

By Dr. Donald S. Siegel and Dr. Robert M. Sauer |

In his seminal article in 1971 on the economic theory of regulation, the Nobel Laureate George Stigler of the University of Chicago argued that government agencies were often “captured” by the industries they were designed to regulate. Before Stigler, the common view was that noble regulators worked assiduously to correct “market failures” with regulation, in order to promote the public interest. Stigler showed that if we assume that regulators have other goals in mind besides promoting the public interest (e.g., covering up their own government failure or enhancing their power, prestige, and budget) they will eventually represent the interests of the industry they are supposed to regulate.

This is referred to as “regulatory capture.” Examples such as a “revolving door” between defense contractors and the Department of Defense and cozy relationships between pharmaceutical companies and the Food and Drug Administration and large energy firms and the Environmental Protection Agency come to mind. When there is regulatory capture, the interests of firms become more important than the public interest, which leads to a net loss to society.

Traditionally, capture theory applies mainly to private sector interests, i.e., firms and industries. However, thanks to several intrepid reporters at the New York Post, we now know that capture theory can also be applied to public sector unions. These reporters uncovered palpable evidence of explicit collusion between the American Federation of Teachers and the CDC. Similar types of explicit collusion between teacher unions and public health officials may also be occurring at the state and local levels. We know that it has also occurred in the U.K., where Boris Johnson appears to be defying trade union pressure to keep masks on secondary school children.

What motivates political appointees at the CDC to collude with teacher unions to prolong lockdowns and continue the confinement and deformity of our children? First, the Biden administration is beholden to teacher unions, who provide substantial financial support to Democrats and also constitute a major, reliable voting bloc. Second, CDC stands for the Centers for Disease Control and Prevention and thus, is responsible for the single greatest government failure of all time. Their ineptitude, inconsistency, and overall incompetence, both before and after the outbreak of the virus, has been staggering. Therefore, it is important that the CDC keeps its trade union friends for political cover. Third, public health police state officials, such as the CDC director, are basking in the limelight and flush with funds, power, and influence. For infectious disease experts, who have become our un-elected rulers, these are the best of times. Pandering to teacher unions allows them to continue regulating all aspects of our family life. Note also that while the CDC is lionized by the media, they are also shielded by craven, cowardly politicians from any accountability for the damage they have inflicted on our economy, society, and physical and mental health, as a result of their misguided quarantines, lockdowns, and “re-openings.”

A sad irony is that the agency responsible for the most massive government failure of all time is allowed to grow and prosper, while continuing its ongoing collective theft of private property, services, and economic, personal, and religious liberty. For example, thanks to the CDC, the entire cruise industry has been grounded for at least fifteen months. CDC guidelines have led to closures of public libraries, museums, and other cultural institutions for over fourteen months. The CDC Director’s recent message of “impending doom” is music to the ears of teacher union officials, who have a vested interest in maintaining maximal use of non-pharmaceutical interventions, such as school closures, physical distancing, and masks for children as young as two years old.

It is impossible to understate the dastardly actions of teacher unions in exerting undue influence on the federal agency charged with deciding how and when to “re-open” schools. Let’s start with the fact that teachers have already received more special treatment than any other type of worker. Recall that when our state-run COVID religion was established in March 2020, a totalitarian/Orwellian taxonomy of “essential” and “non-essential” workers and industries was developed. In most states, teachers are “essential” workers. Unlike many “non-essential” workers, teachers have received full pay during quarantines and lockdowns, with virtually no job losses in the sector. In some school districts, teachers have even received raises and additional benefits, while children remain at home to learn online, often with inferior Internet connections and overwhelmed parents to supervise them. Unlike almost all other “essential” workers, many teachers have not physically reported to work since March 2020. Also, in many states, teachers were vaccinated before many others in their age groups, since we were told that this step was necessary to reopen the schools. The forced masking of students as young as two years old for six hours a day is designed to protect teachers, not students. It has never been clearer that teacher unions aim to prolong the pandemic party for teachers while paying no heed to the physical and psychological damage to the nation’s students.

Now that the collusion between the teacher unions and the CDC has been exposed, we can no longer pretend that public health officials have the public interest in mind. Their claim to follow the “science” has been revealed as fallacious, since they are actually following “political science.” Since March 2020, we have all been human subjects in a grand social science experiment, which has been conducted without “informed consent.” As social scientists, when we conduct an experiment, we are required by law to obtain the informed consent of each of our human subjects. That is, we are required to explain to each subject, in great detail, precisely what we are trying to accomplish in our project, as well as its duration, cost, and risks. All of these protocols have not been followed. We also have to abide by an ethical code, which says that there should be no psychological or physical harm to the subject.

There is no doubt that this unprecedented and deviant child experiment has inflicted significant harm on its human subjects. Thus, while some might say that it is wrong to demonize public health officials, we say that their actions, especially as they relate to children, have been demonic. Regulatory capture of the CDC by teacher unions is a scandal of epic proportions.

For these reasons, we call on parents to reject CDC guidelines for schools and any semblance of the “new normal” at schools. We should no longer allow our children to be unwitting subjects in this deviant and unethical grand social experiment. CDC and teacher-union-enabled child abuse and its ongoing destruction of normal childhood development must end now. The next time your child is forced to wear a face mask for seven hours a day and prevented from interacting with her playmates, you should call child protective services on that teacher or school official. The CDC and the teacher unions are now officially guilty of child abuse.

Donald S. Siegel, Foundation Professor of Public Policy and Management and Director, School of Public Affairs, Arizona State University (Donald.Siegel.1@asu.edu)

Robert M. Sauer, Professor of Economics, Royal Holloway, University of London (Robert.Sauer@rhul.ac.uk)

As Small Business Owners Struggle To Find Employees, Leaders Look To Improve Desire For Jobs

As Small Business Owners Struggle To Find Employees, Leaders Look To Improve Desire For Jobs

By B. Hamilton |

This month’s jobs numbers report, showing a dismal 266,000 jobs added last month to the nation’s economy, has not surprised small business owners. School closures, erratic school schedules in states allowing students to return to the classroom, and nonstop unemployment benefits have kept potential employees home, studies show.

Just the day before the national numbers came out, the National Federation of Independent Business (NFIB) released its Jobs Report and its latest numbers confirm that there is a dearth of ready-to-work employees.

According to the NFIB report, a record 44% of all small business owners say they have job openings they could not fill, 22 points higher than the 48-year historical average, and two points higher than the 42% figure from March.

April is the third consecutive month with a record-high reading of unfilled job openings among small businesses, according to NFIB.

Even though most experts believe unemployment payments are suppressing the job pool, State Rep. David Cook of Globe has been pushing an increase in weekly benefits.

The federally-established Unemployment Insurance Benefits Program, administered by DES according to state law, provides unemployment benefits to persons unemployed through no fault of their own for up to 26 weeks and up to $540 per week or $2160 per month in untaxed paid benefit. During the COVID-19 crisis, beneficiaries did not have to prove they were actively looking for work.

That changed this week when Governor Ducey rescinded a March 2020 Executive Order that waived the requirement that an individual receiving employment benefits must be actively looking for work to receive the benefits.

Other governors are getting more aggressive in getting residents back to work. Montana Governor Greg Gianforte, citing a workforce shortage, announced he will use funds from the American Rescue Plan to incentivize people to become employed.

“While small businesses are glad to see Gov. Doug Ducey re-instating the active work search requirement to qualify for continued state unemployment benefits, more work needs to be done to get able workers off the unemployment rolls and back into one of the many available jobs in the private sector,” said Chad Heinrich, NFIB’s Arizona state director in a press release. “With April also setting a new 12-month high in small businesses raising wages, and a full one-fifth of additional owners planning future wage increases, hopefully, the private sector will soon be able to compete with the overwhelming price the federal government is paying able-workers to sit on the sidelines.”

NFIB Chief Economist Bill Dunkelberg says the “tight labor market is the biggest concern for small businesses who are competing with various factors such as supplemental unemployment benefits, childcare, and in-person school restrictions, and the virus. Many small business owners who are trying to hire are finding themselves unsuccessful and are having to delay the hiring or offer higher wages. Some owners are offering ‘show up’ bonuses for workers who agree to take the job and actually show up for work.”

On Friday, Ducey made a move to bring some relief on the childcare front by providing an additional $9 million in aid for child care providers throughout the state.

“Parents and families need access to safe, reliable, and high-quality child care, especially as Arizonans go back to work and job opportunities expand,” said Ducey. “With the additional funding announced today, we’re making sure more working families have access to that care. I’m grateful to all Arizonans working to ensure families and kids have the support and resources they need and am proud to celebrate Child Care Provider Appreciation Day.”

The CCWRR Grant Program provides immediate support to child care providers in hiring qualified staff and retaining existing staff. This grant program will help all regulated child care providers with recruitment and retention costs to support the child care workforce in Arizona. These funds are made available to Arizona through the Child Care and Development Fund CARES Act, 2020.

Child care centers and group homes must use grant funds for salaries and benefits for employees, and bonus incentives for hiring and retention. Group homes and family child care homes without staff, grant funds may be utilized for a variety of expenses including licensing fees, liability insurance, tuition and registration relief for families, lease and mortgage payments, utilities, classroom materials, and supplies.

While child care providers must apply and attest that they are open and providing child care services at the time of application and for the duration of the grant, grants are not competitive. Grant awards will be paid in one sum amount, with the distribution of payments initiated on June 24, 2021. Child care providers will have until September 30, 2021, to spend the grant funds.

In addition to the CCWRR Grant, the Department has also extended the Essential Workers Child Care Relief Scholarship through June 30, 2021, allowing essential workers and child care providers access to vital child care.

Retailers Anticipate Fastest Growth Since 1980s

Retailers Anticipate Fastest Growth Since 1980s

With more businesses reopening and bringing employees back to work, the U.S. economy is on firm footing and could see its fastest growth in more than three decades, National Retail Federation Chief Economist Jack Kleinhenz said today.

“While there is a great deal of uncertainty about how fast and far this economy will grow in 2021, surveys show an increase in individuals being vaccinated, more willingness to receive a vaccination, increased spending intentions and comfort with resuming pre-pandemic behaviors like shopping, travel and family gatherings,” Kleinhenz said. “This feel-better situation will likely translate into higher levels of household spending, especially around upcoming holidays like the Fourth of July and spending associated with back-to-work and back-to-school.”

“The consumer is nearly always the key driver in the economy, and with the consumer in good financial health, a sharp demand is expected to unfold over the coming months,” Kleinhenz said.

Kleinhenz’s remarks came in the May issue of NRF’s Monthly Economic Review, which
said NRF expects the economy to grow 6.6 percent this year, the highest level since 7.2 percent in 1984.

The report said the latest edition of the Federal Reserve’s Beige Book “affirms what the economic data has been signaling: U.S. growth is beginning to accelerate.” The Fed assessment and other data show unemployment benefits, government stimulus checks and tax refunds have provided a substantial increase in personal income and purchasing power. Consumers are “sitting on a stockpile of cash” that could become “a spring-loaded spending mechanism,” Kleinhenz said.

Among other favorable indicators, the $2.4 trillion saved by households during February alone was approximately twice the average monthly savings during pre-pandemic 2019 and comes on top of savings accumulated over the past year as consumers stayed home rather than dining out, traveling or attending sports and entertainment events.

In addition, use of consumer credit is up, with outstanding credit surging in February to its highest level since late 2017. The increase in borrowing “highlights a consumer who is growing more confident as the economy accelerates, job growth picks up and more states lift burdensome restrictions,” Kleinhenz said.

Kleinhenz cautioned that 2020’s “outsize swings” in economic data caused by the pandemic, hurricanes, wildfires and other events will make year-over-year comparisons difficult during 2021. Federal agencies have “tried their best with the information available” to make seasonal adjustments account for the swings, he said.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – is based on data from the Census Bureau, which released its annual revision of retail sales going back to 2013 last week. NRF has revised its numbers accordingly, and now shows 2020 retail sales of $4.02 trillion rather than the $4.06 trillion originally reported. But 2020 grew 6.9 percent over 2019 rather than 6.7 percent because 2019 was revised down to $3.76 trillion from $3.81 trillion.

The annual update is done to replace previously reported data with more accurate data and to benchmark numbers to the Census Bureau’s Annual Retail Trade Survey. Retail firms are required by law to complete the annual survey, while the monthly survey is voluntary and sometimes reflects estimates and incomplete or unaudited records rather than final numbers.

Even with the revisions, 2020 sales broke the previous record of 6.3 percent set in 2004 despite the pandemic. NRF has forecast that 2021 retail sales – excluding autos, gas and restaurants – will grow between 6.5 percent and 8.2 percent over 2020 to between $4.33 trillion and $4.4 trillion.