Category Archives: prices

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

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

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

the unseen harms of the minimum wage

Don Boudreaux lists out some various possible effects of an increase in the minimum wage, all of which hurt low skilled workers: First, neither I nor any other economist insists “that the minimum wage must raise unemployment.” Raising unemployment is … Continue reading

Posted in Economics, Price Controls, prices | 3 Comments

facts are stubborn things

The one great thing about Obamacare is that it is a beautiful illustration of economics in action. With most things in this world, it is very hard to discern cause and effect from just what is visible. I am reminded … Continue reading

Posted in Econ 101, Economics, Goverment, Price Controls, prices | 3 Comments

understanding the dollar and exchange rates

It is a common talking point by laymen that the US dollar should trade at par or greater than the Canadian dollar, the British Pound or the EU dollar. If they wish to make the point that the EU is … Continue reading

Posted in Economics, prices, Trade | Leave a comment

Why did Ford double wages?

When competition is allowed, labor flows to its most effective use at its natural market price. When competition is not allows, such as the government mandating minimum prices, the results are unemployment and under production. Continue reading

Posted in Economics, History, Labor, prices, Standard of Living | Tagged , , | 1 Comment