Here's a good example of the many items that are buried in the stimulus bill that no one in congress read before they voted for it. This was a feature that was obviously known to a few, but it sure wasn't mentioned in the press or on national news - from an article dated 29Jan09 by James Sherk:
Davis-Bacon Wage Provisions Depress the Economy
"Congress has included a little-known provision in the economic stimulus legislation that wastes tax dollars and costs jobs. All $188 billion worth of construction projects funded in the American Recovery and Reinvestment Act (H.R. 1) must pay Davis-Bacon prevailing wage rates. This requirement will inflate construction costs by $17 billion and depress the economy."
This will in effect, eliminate competition from non-union contractors that would bid below the prevailing highest union wage for a particular kind of work in any part of the county. On the bright side, it might eliminate usage of illegal immigrants. However, that benefit is a minor one compared to the inflation rate of Davis-Bacon wages that is usually over 22%. Also, only the construction workers on federal projects will get paid the inflated wages. This is just another example of politics as usual - ineffecient government waste at it's best, and no "change" anywhere in sight.
Davis-Bacon Wage Provisions Depress the Economy
"Congress has included a little-known provision in the economic stimulus legislation that wastes tax dollars and costs jobs. All $188 billion worth of construction projects funded in the American Recovery and Reinvestment Act (H.R. 1) must pay Davis-Bacon prevailing wage rates. This requirement will inflate construction costs by $17 billion and depress the economy."
This will in effect, eliminate competition from non-union contractors that would bid below the prevailing highest union wage for a particular kind of work in any part of the county. On the bright side, it might eliminate usage of illegal immigrants. However, that benefit is a minor one compared to the inflation rate of Davis-Bacon wages that is usually over 22%. Also, only the construction workers on federal projects will get paid the inflated wages. This is just another example of politics as usual - ineffecient government waste at it's best, and no "change" anywhere in sight.
