Submitted by: Myke
Unions prevail, while
most Nevadans struggle
Prevailing wage laws cost taxpayers billions
By Geoffrey Lawrence
In the 2011 Nevada Legislature, lawmakers in the majority are again carrying water for organized trade unions — from the Keynesian "jobs fund" proposal to the mercantilist "Nevada Jobs First" proposal.
Longtime Nevada residents know this is nothing new. It began in the 1930s, when legislators first adopted the state's prevailing wage requirements on public works projects.Prevailing wage laws in Nevada are adapted from federal language contained in the Davis-Bacon Act of 1931. The explicit purpose of these laws is to prevent a free market from allocating individuals with valuable trade skills to areas where they are most needed.
Since the law's explicit purpose is to undermine this critical role of markets and artificially ensure regional scarcity for skilled labor, it should come as no surprise that the law substantially increases labor costs. The only question becomes: "By how much?"
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