Kokomo Tribune; Kokomo, Indiana

Opinion

July 26, 2013

ERIC SCHANSBERG: Prevailing wage in construction next target for Statehouse?

Minimum-pay law hikes public construction costs.

(Continued)

The less-powerful interest group may be well-positioned to work with the general public to change the law, but it will be difficult given public apathy and ignorance. (Import restrictions on steel are another example, benefiting the domestic steel industry while harming firms that use steel as a prominent input.)

What difference would it make to repeal “prevailing” wages? We can confidently say that the prevailing wage increases the cost of public-sector construction projects, resulting in some combination of higher taxes and lower quality and quantity.

Would repealing prevailing wage laws make a difference? Yes, as economists often say, “at the margin.” The recent passage of a right-to-work law in Indiana provides a useful comparison. Prevailing wage is probably a relatively small factor at the macro level. Still, why is it ethical or practical to impose these costs on others?

With a predominantly Republican government in Indiana, prevailing wage may be the next interest-group privilege to fall.

Eric Schansberg, an adjunct scholar of the Indiana Policy Review Foundation, is professor of economics at Indiana University Southeast. Contact him at dschansb@ius.edu.

Text Only | Photo Reprints
Opinion
  • State aims at outbreaks More than 200 Western School Corp. students were vaccinated for chickenpox after an outbreak in March 2012.The virus was confirmed to have infected five fifth-graders, the Howard County Health Department reported. It acted quickly to prevent the infe

    July 22, 2014

  • MAUREEN HAYDEN: Expiring term heightens urgency of legislator's mission State Rep. Rebecca Kubacki had plans for her return to the General Assembly next January.The two-term Republican from Kosciusko County wanted to exert “full force” to roll back a law that prevents the children of undocumented immigrants from paying i

    July 22, 2014

  • LETTERS: Trust chemical, seed firms and the FDA? Trust chemical, seed firms and the FDA?Let’s see ... Mr. Don Villwock, Indiana Farm Bureau president, wants the FDA to define what genetically engineered foods are, and then he wants it to be optional or voluntary for food companies to tell consumers

    July 22, 2014

  • TOM LoBIANCO: Indiana Democrats deal with divide on education On the face of it, the battles between Democratic Schools Superintendent Glenda Ritz and supporters and staff of Republican Gov. Mike Pence have been a unifying force for Indiana Democrats. But the scrapping has exposed a deep rift within the party o

    July 22, 2014

  • BRIAN HOWEY: Is Evan Bayh contemplating another gubernatorial run? This could be the saga of “LeBron Bayh.”Like a thunderhead brewing in the distance, you could see this one coming. This was the progression: former state Democratic Chairman Dan Parker announces he will not become a candidate for mayor of Indianapoli

    July 21, 2014

  • LETTERS: Show support where you spend money Show support where you spend moneyReinvest in your community. It is something you hear often, but what does it mean and how do you effectively do it?Thankfully, there are people in our community who can give six-figure donations to projects like the

    July 21, 2014

  • DICK WOLFSIE: Please go away already My wife is planning our summer vacation, which we will take in the fall. We took our spring vacation this summer. We got behind in 1984 and still haven't caught up. I don't have much input into the planning of these trips, but Mary Ellen did assign m

    July 21, 2014

  • WEEKLY WRAP: All of Indy must step forward All of Indy must step forwardIt has been a brutal week, one filled with violence, suffering, mourning and reflection.The brutality began on the night of July 4, when two women were shot and wounded on the Eastside. Police found 30 bullet casings in t

    July 21, 2014

  • Testament to our youth We hear complaints — all the time — from campaigning politicians, TV pundits and lobbyists peddling “family values.” The federal government, they say, has “taken God out of our schools.”God never left. Not here. Kokomo City Hall, the United Way of Ho

    July 20, 2014

  • ED VASICEK: Internet, and future of communication One morning, I was chatting with some retired folks and the subject of paying bills on the Internet came up. One woman said she disposed of her computer years ago and pays her bills by mail. I commented she could get by just fine doing that. The othe

    July 20, 2014

Featured Ads
Only on our website
AP Video
Courts Conflicted Over Healthcare Law Holder Urges Bipartisanship on Immigration Raw: Truck, Train Crash Leads to Fireball US Airlines Cancel Israel Flights Obama Signs Workforce Training Law Crash Victims' Remains Reach Ukraine-held City Diplomatic Push Intensifies to End War in Gaza Obama Offers Condolences at Dutch Embassy Cat Fans Lap Up Feline Film Festival Raw: Lawmakers Scuffle in Ukraine's Parliament The Rock Finds His Inner 'Hercules' Michigan Plant's Goal: Flower and Die Raw: MH17 Passenger Remains in Kharkiv, Ukraine Raw: Israel Hits Gaza Targets, Destroys Mosques Veteran Creates Job During High Unemployment New Orleans Plans to Recycle Cigarette Butts
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll