10 April 2012 0 Comments

Prevailing Wage: Rent Seeking by Unionized Labor Paid For by The Forgotten Taxpayer

Unionized Labor has used its organizational muscle to preserve a special government benefit subsidized by The Forgotten Taxpayer  by  increasing costs for ALL government construction, township buildings, schools, parks…everything! 

In 2010, Pennsylvania taxpayers spent $12.7 billion on construction that was subject to the prevailing wage law. Using county wage data, typical labor costs on construction projects, and the experience of other states that suspended or eliminated their wage mandates, that translates to about 10 to 20 percent in extra costs. Overall, that’s an additional $1.3 billion to $2.5 billion that taxpayers pay. That’s a needless $400 to $800 more in taxes for the average family of four— money they could use for childcare, groceries, increasingly expensive gas and other essentials.”     READ MORE Commonwealth Foundation March 1, 2012 Priya Abraham

“Rent” is  a term economists use to describe the benefits special interests win for themselves in the political arena, such as regulation that limits competition.

  Americans for Prosperity Pennsylvania blog updates on the failure, I call it sell out, of House and Senate Republican Leadership.Republicans are more like circus performers than real elected representatives of taxpayers and productive Americans.

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