Friday, September 19, 2008

Does anyone understand?

If you want to understand why the O'Malley Administration cannot get a handle of basic economics, and if you want to understand why Martin O'Malley is continuing to help make it harder and harder for working and middle class families to make it, look no further than his cabinet. State Secretary of Labor Tom Perez tries to sell the argument today in the Gazette that prevailing and living wage laws are good for Maryland.

But of course like most liberals do when discussing the economy, Perez completely contradicts his own argument:

And yet study after study of prevailing wage laws, many that have been on the books for decades, finds that the prevailing wage does not increase costs, and actually has benefits for governments and taxpayers in the form of increased quality and productivity.

A recent paper by the Economic Policy Institute attributed the lack of a link between the prevailing wage and increased costs to various factors, including the fact that in many cases, workers already earn the prevailing wage, and the statute is simply a way to ensure employers who do right by their workers are not underbid by those who do not.

The emphasis is mine and points out a couple of things:

  1. If employees are already earning the equivalent to the prevailing wage, what point is there adding prevailing wage laws to the books
  2. If the statute is a way to "ensure employers who do right by their workers" is that not artificially inflating costs? If a company paying a prevailing wage needs statutory protection to ensure that they are not underbid by a company who does not pay the prevailing wage, more taxpayers dollars must be spent than otherwise necessary in order to complete the project.
  3. Is is better to "do right by workers" by providing more jobs to people who don't have them, or by taking away jobs from people who need them in order to cover the costs of a prevailing wage?
So, to make a long story short, Tom Perez is either lying or doesn't understand simple economics.

I do find it interesting that Perez waxes poetic about ensuring workers receive the "basic respect they deserve in return for the work they do." As a taxpayer of Maryland, I sure as hell don't feel like Perez and the rest of the O'Malley Administration has a basic respect for the work Maryland's working and middle classes do, and the taxes we pay to cover their wasteful spending and profligate lawmaking.

(Crossposted)

7 comments:

Sweet Succulence said...

dying wages are better. Bush knows that.

Mister D. said...

Perez may not understand economics,but he sure understands CASA.

Anonymous said...

with perez you are talking about a politician who got in financing trouble with his house, he is a complete moron and it is scary he is in the position he is in, it would better run by a chimp

CharlieFoxtrot said...

Tom Perez has a long track record of being a complete idiot on economic issues. When he was a Montgomery County Councilman he spearheaded a bill there that as a direct consequence made it impossible for anyone to get a mortgage in Montgomery County for a period of time.

Freemarket Meets Socialism said...

"If you want to understand why the O'Malley Administration cannot get a handle of basic economics, and if you want to understand why Martin O'Malley is continuing to help make it harder and harder for working and middle class families to make it, look no further than his cabinet."

He must be following the neo-con model used by Bush.

What's up with Bush anyway ? Is he doing quick slash and burn before he surrendering his seat to Obama ?

What a great legacy he is leaving--at least he will be remembered as the 2nd worst president ever.

Zinzindor said...

Perez conveniently leaves out two groups of losers under living-wage statutes:

a) the taxpayers, who have to pay more for state-contracted services (or get inferior services for the same money)

b) the low-wage employees, usually lowest-skilled, usually young, who lose their jobs because they don't bring in enough value. Hey, but don't let it be said that the O'Malley administration is over-concerned about disadvantaged youth! We don't want them to have jobs, after all.

and one more question for freemarket meets socialism; If Bush is the second worst, who's number one?

Zinzindor
LeviathanMontgomery.wordpress.com

freemarket meets socialism said...

Reagan. He unleashed the monster that killed our economy.

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