Free Republic

If, needing to move quickly in an emergency, one of your hands is tied behind your back, you should untie it. But once the emergency has passed, you might ask: "Why did I tie it in the first place?" That's a question Congress should now ponder. On September 8, President Bush suspended the Davis-Bacon Act, the federal "prevailing wage" law, in the areas affected by Hurricane Katrina. This is a welcome move in the effort to rebuild New Orleans and the Gulf Coast region, helping to create jobs in the hurricane-stricken areas. But if suspending Davis-Bacon is good for economic...

Bush lifts wage rules for Katrina President signs executive order allowing contractors to pay below prevailing wage in affected areas. September 9, 2005: 11:43 AM EDT WASHINGTON (Reuters) - President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage. In a notice to Congress, Bush said the hurricane had caused "a national emergency" that permits him to take such action under the 1931 Davis-Bacon Act in ravaged areas of Alabama, Florida, Louisiana and Mississippi. The Davis-Bacon law requires federal contractors to pay workers at least the prevailing...

Background: In 1931 the Davis-Bacon Act was adopted to create a "prevailing wage," usually the union rate, for any construction contract over $2,000 funded in whole or in part by the federal government. The benefits of the "prevailing wage," however, go to a very few at the expense of taxpayers and the Act is a prime example of unfunded mandates and government waste. Davis-Bacon inflates the cost of federally funded construction projects by as much as 15%, discourages economic growth, and raises federal spending. In fact, Davis-Bacon Act wages cost taxpayers over $1 billion annually, in addition to the $100...