Should Congress repeal the Davis-Bacon Act?

Question

http://www.capmag.com/article.asp?ID=3357

Argle yes, they should repeal the anti-trust laws - protectionism is wrong. The anti-trust laws have nothing to do with consumer protection - the consumers chose the products of firm A, and the owners of firm B demand protection - anti-trust overrides the consumers, it does not protect them.

Mel how does a price floor prevent slave labor? That makes no sense. As it is, the present threshold is not economically meaningful - anyone whose labor is worth below the minimum is covered by one of the myriad exceptions to it. But a meaningful minimum wage doesn't give anyone a raise - it just makes it illegal to employ someone whose labor is worth below the threshold - - - an $8.50/hour minimum would not give a $1.50/hour raise to someone making $7.00/hour, it would push him out of the workforce entirely. However hard he might have struggled making $7.00, how is he struggling less now that he's unemployed?

Answer 1

Yep there is a lot of laws on the books that need to be taken off.

Maybe before Congress passes a law they should have to take one off.

Answer 2

No. I believe in their minimum wage requirements (although certified payroll is a pain in the bootie). With the problem of illegal immigration, this is what is keeping the US from having slave labor. I don't believe a discussion about repealing can be considered until the Borders are secure.

You're "sort of" incorrect. I work for a road paving business. A loader operator has to make about $12/hr. It's possible in my state to hire an illegal alien to do this job at $6.00. If you don't think that $6.00 an hour for a skilled job like that isn't slave labor I don't know what is. There are no exception to this rule. There is no way out of paying them $12.00/hr.

As for laborers you are also wrong. They must make 9.10/hr. It does in fact end with shovel weilding laborers getting a raise. How would they get shoved out of the market? That makes no sense. You have to have 20 laborers on a particular job you ARE hiring unskilled guys for 9.10/hr that WERE making 7.50. It's a raise. That's what it is.

Answer 3

No. Proper Government contracts are let based on Govt estimations of cost. When they make those calculations the Bacon-Davis rates are used. These rates should be paid to the trades that are used. The onus is placed on the contractor to work efficiently to complete the contract not by robbing the worker of his just reward for his skill and ability.

Answer 4

No contractor has to bid on a prevailing wage job. The company I worked for ran - not walked - away from those RFP's and RFQ's. The problem is if you get on one of those jobs and pay $28 / hr for a grunt they quit when you put them back to $10 / hr so we don't go there.

Answer 5

I don't think so - just as they shouldn't repeal anti-trust laws. If you don't see the parallels there is little hope.

But if you want to write your congressman feel free. Lots of luck.