A news service for the people of Michigan from the Mackinac Center for Public Policy

Beginning Sept. 1, Michigan will finally repeal its 1976 item pricing law that forces grocery stores to put paper tags on most merchandise. The outdated law prevents electronic pricing and costs businesses and consumers money. As Gov. Rick Snyder said at the signing of the bill: “Hopefully it will create jobs because it will give opportunities for lower prices and more economic opportunity. … There’s much more worthwhile things that people ought to be doing than spending their time on stickers.”

The repeal should be a virtual “no-brainer.” After all, technological advances have long made paper pricing a thing of the past, which is why Michigan is one of only two states that mandate the practice. But some employee unions are against the measure, claiming it will cost jobs. Michigan AFL-CIO President Mark Gaffney said that the change will eliminate 200 to 300 positions, and the United Food and Commercial Workers Union, which represents Meijer employees, also believes the measure will lead to layoffs.

If it is true that government mandates can create employment and wealth, then I have a proposal. Instead of the current law, which requires businesses to have at least one paper tag per item, the state should mandate 10 tags per item. In fact, maybe we should up that to 100 tags per item. After all, think of how many more jobs will be created by forcing businesses to hire more and more workers to comply. Unfortunately, that law would have the opposite effect.

Economic illiteracy has long caused some to believe government can simply mandate certain laws with no cost to businesses, employers or citizens. The truth of the matter is that item pricing merely shifts business costs from one area into another. Without the law, perhaps businesses will hire more cashiers, cleaners or bakery staff. Or maybe they will simply lower their prices for customers. There are countless other areas businesses could better spend their money.

One thing is for sure: Government mandates do not create jobs or prosperity.

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SEIU TAKES $33M AND COUNTING
FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS

ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
[clock1]
Skimmed since November 2006
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Skimmed after reaching the MI Senate in June 2011
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Skimmed after the bill was signed April 10, 2012
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Skimmed after the Attorney General
opinion May 25, 2012

The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.

The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.

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