Category Archives: Labor

repeal the davis-bacon act

In 1931, the Davis Bacon Act (DBA) was passed. According the FAR 22.403-1 “The Davis-Bacon Act (40 U.S.C. 3141 et seq.) provides that contracts in excess of $2,000 to which the United States or the District of Columbia is a … Continue reading

Posted in Contracting, Econ 101, Economics, Goverment, Labor, Price Controls, prices | 1 Comment

krugman loses all grasp of reality

From a recent post by Paul Krugman talking about Unemployment Insurance. As a background, Classical view states that if you pay someone to be unemployed, they will stay unemployed longer than otherwise. Here is Krugman: But if you follow right-wing … Continue reading

Posted in Econ 101, Economics, Labor, Leftists | Leave a comment

walmart and the 15 dollar wage

Peter Schiff is receiving his fair share of death threats these days. His crime: he explained why Walmart cannot pay $15 per hour wages. He explains: Walmart’s profit margins are extremely slim as it is (3%). Their customers want low … Continue reading

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learning from a titan of industry

The other day I had the good fortune to sit next to a very interesting man on a flight to Chicago. It turned out that he was an independent consultant and premium priced contractor for various factories around the world. … Continue reading

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possible harms of the minimum wage

In a previous post, I quoted economist Don Bordeaux concerning possible ways employers deal with an increasing minimum wage. One commenter stated that minimum wage employers offer few fringe benefits so it is unlikely that they could decrease fringe benefits … Continue reading

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restaurant food pricing

Russ Roberts asks why take-out food at sit-down restaurants is not less expensive than the sit-down prices. The assumption is that the price of food at a restaurant covers the fixed cost of operating a table. Russ wonder why those … Continue reading

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recession economics

EconLog posted one of their most informative posts today. Bryan Caplan writes on why wages do not decrease during a recession (i.e. why employers favor layoffs). Markets in everything. It appears that there is an internal business market for equity … Continue reading

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