Pro/Con: Do Prevailing Wage Mandates Boost Economy? – Duluth News Tribune
TL/DR –
The Biden administration’s economic vision includes the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act, which aim to grow the economy from the middle out and bottom up. These laws focus on public investment in infrastructure, domestic competitiveness, and protections for workers, with many funds protected by the Davis-Bacon Act requiring fair pay for construction workers. Research shows prevailing-wage laws improve workers’ lives, boost productivity, and reduce injury rates, and the author argues that these standards should be expanded to all federally funded jobs to grow the middle class and improve American workers’ lives.
The Biden Administration’s Economic Vision with New Laws
The Biden administration aims to stimulate the economy through the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act, moving away from the ineffective trickle-down strategies of previous decades. The White House’s “middle out and bottom up” approach focuses on public investments in infrastructure and supporting domestic competitiveness.
Impact of Prevailing-Wage Laws
Key protections from these acts, including prevailing wage standards, have been seen by some as a gamble, despite the proven benefits to workers and contractors. These laws require corporations receiving federal funds to pay construction workers market or prevailing wages and benefits. Research shows that prevailing-wage laws reduce the income gap between white and Black construction workers, and improve workers’ lives by supporting middle-class pay, expanding benefits and boosting productivity.
Attempts to Undermine Prevailing-Wage Laws
Despite the proven benefits, some lawmakers try to undermine these pro-worker laws in favor of trickle-down policies. This includes attempts to roll back federal standards and overturn state-level prevailing-wage laws. However, studies show that prevailing-wage bans reduce workers’ wages and decrease competition for government projects.
Shifting Tides in Favor of Workers
Recent actions suggest a turning tide in favor of workers. Michigan Gov. Gretchen Whitmer repealed Michigan’s prevailing-wage ban, announcing a commitment to workers’ rights. Additionally, a bipartisan effort defeated a measure that would have repealed federal prevailing-wage protections.
The Future of Worker Protection
The question remains whether these standards and protections will be adopted broadly enough to impact working people nationwide. To meet Biden’s “middle-out” commitments, prevailing-wage standards must be combined with efforts to offer high-quality training, ensure workers’ rights to unionize, and prevent labor disruptions on publicly funded projects.
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