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Labor’s yoke threatens economic freedom

(Bowling Green, Kentucky) – A new report indicates that Kentucky’s economic climate continues to provide less-than-favorable conditions for attracting entrepreneurs and developing opportunities for more prosperity.

The study by the National Center for Policy Analysis (NCPA) and Canada’s Fraser Institute reports that only West Virginia ranks lower among surrounding states when it comes to the amount of economic freedom Kentuckians enjoy.

The “Economic Freedom of North America 2006 Annual Report,” which considered states’ tax burdens, size of governments and flexibility of labor markets during 2001-2003, offered good news for many states but indicated that Kentucky continues to lag behind, particularly in labor-related issues.

The index ranked Kentucky 33rd in the nation when considering the amount of labor freedom enjoyed by employers and employees alike. Only Ohio and West Virginia scored lower among surrounding states.

“When a state has a high minimum wage, fat government payroll and is dominated by labor unions, it will have less economic freedom,” said Jeff Edgens, director of research for the Bluegrass Institute, Kentucky’s free-market think tank.

The report indicates that Indiana, Tennessee, Illinois and Missouri have a better labor climate than Kentucky. In fact, Tennessee’s labor market is red hot. The Volunteer State has ranked either third or fourth every year since 1981.

“Kentucky needs to change its outdated labor policies,” Edgens said. “It needs to stop artificially inflating wages, allow the private sector to compete to provide needed services and remove the harmful regulatory yoke borne by business."

– For interview information, contact Jim Waters, Director of Policy and Communications for the Bluegrass Institute. He can be reached at (270) 782-2140 or jwaters@bipps.org.

The Bluegrass Institute is an independent research and educational institution offering free-market solutions to Kentucky's most pressing problems.

Permission to reprint Perspective commentaries, in whole or in part, is hereby granted, provided the author and his affiliations are cited. Authors are available for interviews by contacting the Institute.

Bluegrass Institute for Public Policy Solutions
400 East Main Avenue, Bowling Green, KY 42101

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