Let's take the Davis-Bacon Act of 1931, which basically mandates that the Federal Government pay "prevailing wages" for contractors. But the "prevailing wage" has become the local UNION wage based on poorly executed "surveys."
From Stockman's Contra Corner,
The Davis-Bacon Act of 1931 requires the government to pay federal contractors the “prevailing wage” in the area, and it grants the Department of Labor the authority to determine that prevailing wage. But in practice, the Labor Department is setting federal contractor wages at levels much higher than the market rate:
- Pipefitters in Laredo, Texas, make $11.47 per hour. But pipefitters in Laredo working on a federal contract? They make a minimum of $36.49, plus benefits.
- In New York City, the median hourly salary for window installers is $18.87. But for government contractors, even the most inexperienced installers make $42 hourly.
- In Philadelphia, lathers make $19.26 per hour, yet federal contractors are required to be paid a minimum of $39.90 each hour, plus an additional $25 per hour in fringe benefits!