Monday, March 16, 2009

Recovery Twist

Just say a news program explaining a new twist on the recovery. Supposedly all jobs must be paid at prevailing union wages. So instead of paying $15 an hour to weatherized a home, in California they would have to pay $45/hour carpenter wages. If they use non-union wages, the worker must pay union dues.

Now all the "shovel-ready" projects must be re-bid to account for the higher wage scales. Thus instead of building 10 miles of road the city can now only build 7 miles with the same money.

Thus the effect of the "recovery" will be delayed as all these jobs/projects will be delayed for new bids.

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