David Bernstein, who blogs on the Volokh Conspiracy, wrote on the Davis-Bacon Act in Human Events yesterday. The act requires that workers on federally-funded projects be paid a "prevailing wage," a rate usually much higher than local wages. President Bush suspended the act for areas affected by Hurricane Katrina, just as his father did after Hurricane Andrew.
The act, as Bernstein notes, "adds billions of dollars to the cost of infrastructure projects" and, quite appallingly, has discriminatory origins.
In 1927, Rep. Robert Bacon (R.-N.Y.)--whose pet issue was protecting America’s racial "homogeneity"--introduced what became the Davis-Bacon Act after a contractor employed African-American workers from Alabama to build a Veteran's Bureau hospital in his district. The "neighboring community," Bacon reported, was "very upset," as were local unions.
Bacon's bill was later co-sponsored by a fellow avowed racist, Sen. James Davis (R-Pa.), who sympathized with Bacon's complaints about the "outfit of Negro laborers" who worked on the hospital. Davis-Bacon's legislative history is punctuated by repeated complaints from various congressmen about African-American construction workers stealing jobs from "white labor."
Congress ultimately chose to pursue the goal of excluding blacks for the benefit of unionized white workers by requiring federal contractors to follow union wage and work rules.
As Bernstein concludes, the act benefits unions and harms unskilled workers under the guise of "fairness."
Despite the arguments against the Davis-Bacon Act, the President's Executive Order to suspend it has been criticized on both sides of the aisle. House Democrats have introduced the Fair Wages for Hurricane Victims Act, which would reinstate "prevailing wages." All House Democrats (and Bernie Sanders) have signed onto the bill.
House Republicans have also joined the call to reinstate Davis-Bacon. Thirty-seven Republicans have signed a letter to the President calling on him to "provide a date certain for the termination of the proclamation suspending Davis-Bacon of no later than November 8, 2005."
Now, it's possible that there will be a floor debate in the House on Davis-Bacon. Rep. George Miller has introduced a resolution of inquiry that would require the President to present Davis-Bacon-related information to Congress. The resolution is currently in Committee. It will come to the floor if it is not disapproved.