Suspending The Davis-Bacon Act Now Will Help States Rebuild After Hurricane Irene

With Hurricane Irene poised to strike the East Coast of the United States, it is appropriate to consider what the federal government’s response will be in the aftermath of the wind and torrential rain.  The federal government is known for having outdated laws and regulations but there is one law, The Davis-Bacon Act, that could determine whether or not reconstruction of towns and cities can be accomplished in the most cost efficient way.  Worried about unfair competition in the form of roving bands of gypsy construction workers undercutting local wages, Congress passed the Davis-Bacon Act in 1931 to ensure that “prevailing wages” are paid on federal construction projects worth $2,000 or more.  What most people don’t know is that the Davis-Bacon Act inflates the cost of federal construction projects and discriminates against small businesses, women, and minorities.  The Heritage Foundation estimated that “the Davis–Bacon Act (DBA) requires government contractors to pay wages averaging 22 percent above market rates.”  The federal government should suspend Davis-Bacon requirements now in order to prepare for the rebuilding that is sure to follow Hurricane Irene.

There is precedent for President Obama to do this. In 1992, President George H.W. Bush suspended Davis-Bacon when Hurricane Andrew struck South Florida and coastal Louisiana and when Hurricane Iniki struck Hawaii.  In 2005, recognizing the need to rebuild the Gulf States as quickly and as cost effectively as possible, President Bush suspended Davis-Bacon in the wake of Hurricane Katrina.  Unfortunately, President Bush quickly reinstated Davis-Bacon after receiving backlash from organized labor.

The biggest opponents of suspending Davis-Bacon are minorities, which is ironic because of the law’s racist origins.  According to Reason.com, “To make matters worse, the Davis-Bacon Act has explicitly racist origins. It was introduced in response to the presence of Southern black construction workers on a Long Island, N.Y.. veterans hospital project. This ‘cheap’ and ‘bootleg labor was denounced by Rep. Robert L. Bacon, New York Republican, who introduced the legislation. American Federation of Labor (AFL) president William Green eagerly testified in support of the law before the U.S. Senate, claiming that ‘colored labor is being brought in to demoralize wage rates.’”

An August 25, 2011 article in the American Thinker also notes that “This racist legislation has been on the books since 1931.  It is a pro-union law that had the original intent of driving black workers out of the construction and building trades industries.  During the 1931 congressional debate, Rep. Clayton Allgood, D-Ala., stated: ‘Reference has been made to a contractor from Alabama who went to New York with bootleg labor.  This is a fact.  That contractor has cheap colored labor that he transports, and he puts them in cabins, and it is labor of that sort that is in competition with white labor throughout the country.’”

Not only will repealing the Davis-Bacon Act be a proactive way of preparing for the aftermath of Hurricane Irene, it will also help shed some of the country’s racist baggage and, according to some congressional estimates, save taxpayers $6 billion over five years if fully repealed.  A true win-win for those affected by the hurricane and taxpayers across the country.