The Briefing Room
General Category => Economy/Business => Topic started by: Kamaji on August 13, 2023, 05:34:07 pm
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Biden's New 'Prevailing Wage' Rule Will Cost Taxpayers, Benefit Unions, and Hike Inflation
The Labor Department is officially undoing changes made to help combat inflation in the 1980s.
ERIC BOEHM
8.11.2023
In the same week as government data revealed that inflation is stubbornly ticking higher again, the Biden administration put its final stamp of approval on a new rule that will hike the cost of infrastructure projects.
The Department of Labor announced Wednesday that it will change how it calculates so-called prevailing wages paid to government contractors working on construction and infrastructure projects. In its announcement of the new rule, the Labor Department claims the changes are meant to "modernize Davis-Bacon," the 1931 law that governs compensation for federal building projects.
Actually, the changes are a significant step backward. Biden is effectively undoing a major change made by the Reagan administration—changes that were made, fittingly, to help combat inflation.
That change, made in 1982, repealed the "30 percent rule" that guided the process for determining what wages would be paid on which projects. Under the 30 percent rule, the prevailing wage for any particular area would be based on the highest wages paid to at least 30 percent of workers within the same area.
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Source: https://reason.com/2023/08/11/bidens-new-prevailing-wage-rule-will-cost-taxpayers-benefit-unions-and-hike-inflation/
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:facepalm2:
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I agree. :facepalm2: