Iowa is a Right To Work State but still bailing out UAW

thought you might find this particularly interesting as Iowa is a Right To Work State. Senior Policy Analyst in Labor Economics James Sherk has just published  a piece on the bailout being for the United Auto Workers (23 billion worth).

The U.S. government will lose about $23 billion on the 2008-2009 bailout of General Motors and Chrysler. President Obama emphatically defends his decision to subsidize the automakers, arguing it was necessary to prevent massive job losses. But, even accepting this premise, the government could have executed the bailout with no net cost to taxpayers. It could have?had the Administration required the United Auto Workers (UAW) to accept standard bankruptcy concessions instead of granting the union preferential treatment. The extra UAW subsidies cost $26.5 billion?more than the entire foreign aid budget in 2011. The Administration did not need to lose money to keep GM and Chrysler operating. The Detroit auto bailout was, in fact, a UAW bailout....read more

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Corrine Williams
Midwestern Regional Media Associate
The Heritage Foundation
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