1:58 PM Eastern - Wednesday, March 11, 2009

"Crackpot Economics" from Big Business

Corporate-backed opponents of the Employee Free Choice Act are out with their latest Big Lie. A coalition of industry groups commissioned a "study" that claims the unemployment increases as more workers join unions.

The study's author testified in front of Congress yesterday, and Republicans are using this to justify their opposition to the middle class recovery brought to you by the Employee Free Choice Act. Specifically, the author claims that the US will lose 600,000 jobs in the year 2010 if the Employee Free Choice Act passes.

From BNA's Daily Labor Report:

The Alliance to Save Main Street Jobs, which consists of several pro-business groups such as the HR Policy Association and the U.S. Chamber of Commerce, sponsored the study by economist Dr. Anne Layne-Farrar from LECG Consulting.

The study said that if EFCA "passed today and resulted in an increase in unionization from the current rate of about 12 percent to 15 percent," then union-represented workers would increase from 15.5 million to 19.6 million while unemployment a year from now would rise by 1.5 million, to 10.4 million.

Wow! That sounds horrible. Let's get another economist to back up her logic:

Lawrence Mishel, president of the Economic Policy Institute, told BNA that the study amounted to "crackpot economics." "I don't find it credible at all," Mishel said.

Mishel said that with union membership decreasing over the past 30 years, by using the study's logic, the United States would have "negative unemployment."


The same people who brought down our economy over the last several years are now trying to warn of massive job losses by helping the middle class.

Memo to opponents of the Employee Free Choice Act: it's actually an economic recovery program for hardworking Americans, despite your flailing to the contrary.

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