Bush Says Katrina Pay Can Be Lower?
By Justin Gardner | Related entries in Hurricane KatrinaI’ve sincerely tried my best to understand where the administration is coming from. Truly I have.
Sure, I’ve posted criticisms against Bush and others, but that’s to be expected in the wake of this botched rescue effort. And while I don’t put the blame on the shoulders of the federal government, the following story truly makes me shake my head and wonder what the heck these people are thinking.
So first, the Congress just approved over 50 BILLION in relief aid, but now Bush is telling contractors that they can pay people less to rescue and recover New Orleans.
Huh???
WASHINGTON (Reuters) – President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage.In a notice to Congress, Bush said the hurricane had caused “a national emergency” that permits him to take such action under the 1931 Davis-Bacon Act in ravaged areas of Alabama, Florida, Louisiana and Mississippi.
Bush’s action came as the federal government moved to provide billions of dollars in aid, and drew rebukes from two of organized labor’s biggest friends in Congress, Rep. George Miller of California and Sen. Edward Kennedy of Massachusetts, both Democrats.
“The administration is using the devastation of Hurricane Katrina to cut the wages of people desperately trying to rebuild their lives and their communities,” Miller said.
Honestly, I’m trying to make sense of this, but I can’t.
I understand that we need to make sure we’re not grossly overpaying people, but given that we appropriated $87 billion for the Iraq war and we’ve just put aside $51,8 billion for the relief effort, I don’t understand why we’re now trying to keep tabs on those working to save our people in this country. Especially given that many think our effort here is going to cost over $100 billion to save one of our most important port cities.
Simply put, Bush didn’t ask the contractors in Iraq to pinch pennies (at least as I’ve seen), but mere days into a HUGE disaster in the US and he’s telling companies they can underpay people? This simply doesn’t make sense!
The Davis-Bacon law requires federal contractors to pay workers at least the prevailing wages in the area where the work is conducted. It applies to federally funded construction projects such as highways and bridges.Bush’s executive order suspends the requirements of the Davis-Bacon law for designated areas hit by the storm.
Here are some other proposals that could help the citizens of New Orleans get back on their feet.
-Turning New Orleans and other cities affected by the storm into big new tax-free zones.-Providing reconstruction money for tens of thousands of homeowners and small businesses that did not have federal flood insurance on their houses or buildings.
-Making most hurricane victims eligible for health care under Medicaid and having the federal government pay the full cost rather than the current practice of splitting costs with states.
People, you know I’m reasonable, but given our attitude towards Iraq and the money we’ve spent there, this doesn’t make any sense to me. Illuminate my thinking because every single scenario I come up with doesn’t square with cutting our people’s wages. Thoughts are welcome and appreciated.
And earnestly, I want to hear answers in this time. I truly don’t understand this logic at all.
This entry was posted on Friday, September 9th, 2005 and is filed under Hurricane Katrina. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 9th, 2005 at 5:46 am
Normally I understand what President Bush is pushing, whether or not I agree. In this case, however, I totally don’t get it.
September 9th, 2005 at 7:31 am
Model rebuilding efforts after the WPA…
Why not look back at how those projects were done and apply those methods to this rebuild. Would be a way for the gov. to control costs and for the gov. to employ locals to rebuild their own city.
September 9th, 2005 at 7:45 am
Construction Unions, Guys! Hire 3 non-union black laborers instead of importing a journeyman from Minnesota. Does that help?
September 9th, 2005 at 8:59 am
Do you have to be a right winger to consider the prevailing wage game complete nonsense? I’m glad that this rule is not complicating the recovery effort and that the folks in the rebuild area will get the full 50 billion value for the money.
They way for the Government to give money to people you think should get more is to explicitly tax others and explicity give the money directly to those deserving folks. Prevailing wage laws are an inefficient way of doing this same thing in a spotty way.
September 9th, 2005 at 10:12 am
Well DeanT, the “prevailing wage game” is the law and the way we have agreed (as a democracry) to pay our people. In essence, it has built this great economy that Bush trumpets when the new employment figures come out. So it’s hardly nonsense. I’m sure there are theories on how to do it better, but my question reamins, why LESS pay? How in the hell does that make any sense whatsoever?
Again, we’re not playing the wage game in Iraq. Contractors are getting paid hundreds of thousands of dollars to import fuel, serve food, rebuild, etc.
Why here? Why now?
I just don’t get it.
September 9th, 2005 at 11:05 am
I agree with RiverRat. This will encourage contractors to hire local, out of work, labor. Otherwise, they would just bring in huge, midwestern construction firms. Workers in those firms aren’t going to work for less than prevailing wage, but, hopefully, people left destitute by the hurricane will. I think it’s really about helping all those poor people that
“Bush doesn’t care about”.
Besides, if you spend less on contractors, that leaves more money to be spread elsewhere. Nothing wrong with cutting expenses instead of rasing taxes IMO.
September 9th, 2005 at 12:23 pm
Nobody would do the work in Iraq for less wages….. over there if they get caught or ‘kidnapped’ by the terrorist they get their heads cut off by a dull knife…. They also face IED that are planted along roads that could blow them up…. they face snipers that shoot at them, etc. etc. etc.
In New Orleans they will be demolishing houses and hauling away rubble, shoveling sludge and hauling it away, and rebuilding houses, etc. Most of the grunt work is going to be for laborers, why not insure that the displaced people get a chance to work before you ’ship in others’ because you can use your people and charge whatever to the Federal Government….
Justin,
“Well DeanT, the “prevailing wage gameâ€Â? is the law and the way we have agreed (as a democracry) to pay our people. In essence, it has built this great economy that Bush trumpets when the new employment figures come out. So it’s hardly nonsense. I’m sure there are theories on how to do it better, but my question reamins, why LESS pay? How in the hell does that make any sense whatsoever?”
I disagree that the ‘prevailing wage game’ has anything at all to do with this great economy…. as a matter of fact I believe that artificially inflated wages are a drag on any economy, tax cuts are what helps an economy… and as for what the law is…. In times of emergency the President has the authority to do things, which is also in the law that we (as a democracy) have agreed on.
September 10th, 2005 at 3:48 pm
“Prevailing wage” as a legal term is higher than market rates. See an example of how it hurts affordable housing here:
http://cicg.org/publications/prevailing%20wage%20and%20affordable%20housing.pdf
Bush is saying “You can do the work with new hires, not just experienced union guys.” So the displace folks in NO can build their new homes, instead of watching imported pros do all the work.
September 11th, 2005 at 1:41 am
People, I’m sure there are MANY union laborers in New Orleans. I mean, come on…it’s a major port city! Given that, the “hired guns” argument doesn’t seem very valid.