Ending What Little Competitive Governance the US Has
Boeing’s president said he is “moving the 787 Dreamliner work to South Carolina due to strikes happening every three to four years in Puget Sound.” The NLRB isn’t happy about Boeing’s efforts to exit onerous labor regs. Now they’re filing a complaint that may halt the move. Economist Ed Glaeser has a good article on what this implies for US innovation:
Perhaps company presidents should never admit that they consider labor conditions when moving production, but they surely always will and that isn’t a bad thing. When a company moves to a lower-wage state, it is both making itself more competitive and boosting labor demand in a poorer place. Surely, equity enthusiasts should cheer when jobs come to low-income areas.
The U.S. has benefitted enormously from migration. For centuries, people and companies have been free to choose locations that meet their needs. We need our industries to be as nimble and innovative as possible, and we should all worry about any legal precedent that restricts the ability of U.S. manufacturing to compete.