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Bad Information About the Prevailing Wage Abounds

May 27, 2021 March and April saw two news events involving Michigan’s now-defunct prevailing wage law. The first involved legislation introduced March 25 that would reinstate the costly wage mandate on government contracts in the Great Lake State. The second involved a court decision not to retry a former state representative who had been charged with attempted extortion and soliciting a bribe in exchange for voting against a bill to repeal the law. Interestingly, both stories cross paths with an Indiana-specific paper the Mackinac Center has repeatedly criticized. Prevailing wage laws artificially inflate the cost of public construction projects by imposing local union prices on government-financed assets such as roads, buildings and parks. Unions vociferously oppose the law’s repeal and supported a cottage industry of publications claiming with questionable supporting evidence that there are few positive impacts of repealing these laws, and some negative ones.

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