Wednesday, March 24, 2010

Repeal the Davis-Bacon Act: How prevailing wage laws benefit unions at the expense of taxpayers

Reason reports:
For nearly 80 years, contractors working on federally funded construction projects have been forced to pay their workers artificially inflated wages that rip off American taxpayers while lining the pockets of organized labor. The culprit is the Davis-Bacon Act of 1931, which requires all workers on federal projects worth more than $2,000 to be paid the "prevailing wage," which typically means the local union wage.
Another great one from Reason, who doesn't forget the racist origins of Davis-Bacon:
It was introduced in response to the presence of Southern black construction workers on a Long Island, N.Y.. veterans hospital project. This "cheap" and "bootleg" labor was denounced by Rep. Robert L. Bacon, New York Republican, who introduced the legislation. American Federation of Labor (AFL) president William Green eagerly testified in support of the law before the U.S. Senate, claiming that "colored labor is being brought in to demoralize wage rates."
The union movement. Just a reminder, the supposedly "free market" Herbert Hoover signed this one. Herbert Hoover, father of the New Deal.