02/28/2010

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Was the Stimulus a Jobs Bill, or Special Interest Spending? | The Foundry: Conservative Policy News. Was the stimulus (A) a job creation bill or, (B) a liberal spending wish list? A new Government Accountability Office (GAO) study suggests that option B is closer to the truth. Small wonder it did not bring unemployment down. Obama publicly argued that America needed the $862 billion bill to create jobs and singled out “green job” spending as the key to an economic recovery. The stimulus itself, however, looked a lot like not letting “a good crisis go to waste” and pouring public money at liberal special interests. Remember all the green jobs weatherizing homes that Obama said the stimulus would fund? Because Obama would not waive regulations that benefit unions the Department of Energy has weatherized just 1 out of every 65 homes they planned to. The Davis-Bacon Act (DBA) requires contractors on all federal construction projects to pay “prevailing wages.” In theory, those prevailing wages are supposed to be market wages. In practice, the Department of Labor uses slow, error-ridden, and unscientific methods to estimate them. As a result Davis-Bacon rates typically echo union wage scales: an average of 22 percent above market wages. By law the government hires four construction workers for the price of five. Unions love this. No one can charge taxpayers less than they do. Jobs that would otherwise go to nonunion workers instead go to them at wages no one else would pay. via blog.heritage.org

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