For a bankruptcy lawyer, there is much to like about Right to Work.
The following is a transcript of Attorney James Murray's testimony to the Wisconsin Assembly Committee on Labor today. Here's a link to Rebecca Kemble's video of his testimony: https://www.youtube.com/...
"Good morning, Chairman Jacque and committee members. Thank you for the opportunity to testify today.
I’m a small business owner and I’m here because I grew tired of the parade of witnesses last week testifying before the Senate about how bad Right To Work will be for Wisconsin. Everything they say is technically correct, but they deliberately ignore the fact that Right to Work is good for my business, the bankruptcy business.
I’ve been a personal bankruptcy lawyer in Wisconsin for more than 20 years. The Bill’s opponents like to tack on extra words to this legislation, calling it "Right to Work for Less." I prefer to add some extra words of my own. I call it “Right to (More) Work (for Personal Bankruptcy Lawyers)” because that’s what it is, and that’s why I’m here to speak in favor of it today.
For those opponents of the bill who asked last week "why isn't there any business owner coming here to testify in support of the bill," I give them the answer "Here I am." They say that when life gives you lemons, make lemonade. You can think of bankruptcy lawyers as lemonade makers, and after you vote for this bill, we will think of you as lemon makers.
Wisconsin is already one of the top 12 states for the most bankruptcies per capita, according to the American Bankruptcy Institute’s statistics for 2014. Sure, we’re in the “dirty dozen,” but we barely made it, we’re only #11. Personal bankruptcy lawyers know we can do better and Right to Work will surely give us the push we need to break into the Top 10.
What about our neighbor Minnesota? Not even in the running! With all their economic success, they lag behind, and they're only #31 in terms of per capita bankruptcy filings. If there were a Paul Bunyan Axe for bankruptcy, Wisconsin would hold it. There's no Minnesota curse here! We've blessed ourselves - or cursed ourselves, of course, depending on your perspective.
I am happy to report that 9 of the 12 states with the most bankruptcies per capita, including all top 4, are Right-To-Work states. I’m not saying we can become an Alabama or Tennessee overnight, with more than 5 or 6 bankruptcies per 1000 residents, but we can do better than our current rate of nearly 4. Right now, we’re only .01 bankruptcies behind #10 Mississippi. When Governor Walker signs this legislation, we’ll be on our way to becoming a Top-10 state for bankruptcies. And I get excited just saying that!
Our critics are always quick to say that “correlation does not imply causation,” and ask for one good reason why passing Right to Work will cause more personal bankruptcies. Well here’s one very good reason: Wages go down in Right-to-Work states. Studies show that both union and non-union workers in Right-to-Work states earn about $1,500 less per year than workers doing the same work in normal states. That's a lot of money when so many Wisconsinites are already struggling and living from paycheck to paycheck. Lower income means more people falling behind on their bills and that means more bankruptcies. It’s just common sense; you don’t need a fancy economist to come explain that to you.
Now I bet there are opponents of this Bill who don’t want to let Right to Work take all the credit for a bankruptcy boom in Wisconsin. These critics like to point out that most of the 12 states with the highest numbers of bankruptcies per capita also refused to accept free federal dollars for Medicaid coverage expansion through Obamacare. They say “gotcha” and point out that the 4 states with the highest bankruptcy rates (Tennessee, Alabama, Georgia and Utah) all refused Obamacare money and denied health insurance coverage to one million of their citizens. Yes, uninsured and medical expenses are probably the No. 1 cause of personal bankruptcies.
What’s my response to that argument? “So What?” Wisconsin also refused the free Medicaid money and denied health insurance to 120,000 Wisconsinites.
It really doesn’t matter exactly what's working bankruptcy magic for states like Alabama and Tennessee. Is it passing a Right-to-Work law, is it refusing Obamacare money, is it a combination of the two? Who cares exactly why it works, as long as it does. Let the accademics debate the why's after this bill has been passed.
Everybody knows that uncertainty is bad for business, and the bankruptcy business is no exception. Despite LOTS of Wisconsinites reaching the ends of their ropes and filing for bankruptcy in 2014, many people are still trying to tough things out and avoid bankruptcy because they hear about the economic recovery in other states, like great things happening right next door in Minnesota, and that gives them hope that Wisconsin might catch up one day. This bill will take away that hope, take away that uncertainty, and send a clear message that Wisconsin Is Open For Bankruptcy.
For someone staring at big pile of bills on the dining room table and worrying about how he is going to pay for them, it sometimes takes just one more bill to push him over the edge and force his family into bankruptcy. Usually it’s something like an enormous medical bill showing up in the mail. But this time, the bill that will break the back of Wisconsin families isn't going to come in the mail - it’s going to come out of this committee, tonight. It’s the Right-to-Work Bill, Assembly Bill 61.
With Right To Work, Wisconsin is entering a high-speed race to the bottom, and in any race there are going to be accidents. Someone is going to have to clean up those accidents: personal bankruptcy attorneys. For the benefit of personal bankruptcy attorneys, all across Wisconsin, I urge you to pass this bill.
Thank you for your kind attention.