September 11, 2005
IT'S NOT ENOUGH OF AN EMERGENCY TO ABANDON SOCIALISM (via Robert Schwartz):
A Shameful Proclamation (New York Times, September 10, 2005)
On Thursday, President Bush issued a proclamation suspending the law that requires employers to pay the locally prevailing wage to construction workers on federally financed projects. The suspension applies to parts of Louisiana, Mississippi, Alabama and Florida.By any standard of human decency, condemning many already poor and now bereft people to subpar wages - thus perpetuating their poverty - is unacceptable. It is also bad for the economy. Without the law, called the Davis-Bacon Act, contractors will be able to pay less, but they'll also get less, as lower wages invariably mean lower productivity.
The ostensible rationale for suspending the law is to reduce taxpayers' costs. Does Mr. Bush really believe it is the will of the American people to deny the prevailing wage to construction workers in New Orleans, Biloxi and other hard-hit areas?
If you want to ask them you could go to Wal-Mart where the American people are busy shopping this weekend, denying service workers and garment workers the wages the Times thinks they should get. Posted by Orrin Judd at September 11, 2005 12:00 AM
"... lower wages invariably mean lower productivity."
This sounds bogus. Is there any proof that this is true?
Posted by: erp
at September 11, 2005 9:16 AM
It may well be true on average, but that's going to be because of capital investment. You have to pay the one guy running your backhoe more than you'd have to pay each of the 20 guys digging the ditch by hand.
Posted by: David Cohen at September 11, 2005 10:12 AMAnd if it really is true to the extent the NYT wants you to belive, then contractors won't bother taking advantage of those lower wages, sinec they'll obviously want to maintain higher productivity.
Posted by: Timothy at September 11, 2005 3:12 PM