Why Prevailing Wage Laws Must Be Abolished

1. Why Prevailing Wage Laws Must Be AbolishedPrevailing wage laws, often sold as a boon for workers, are a bureaucratic boondoggle that fleece taxpayers, stifle small businesses, and deliver little real benefit to laborers. Far from promoting fairness, these laws inflate costs, distort markets, and prioritize paperwork over progress. They should be outlawed entirely.

   First, the term "prevailing wage" is a misnomer. It’s not the standard wage workers earn in a given area, as the word "prevailing" suggests, but often a higher rate set by government fiat. This artificial benchmark doesn’t reflect market realities—it overrides them. By mandating above-market wages, these laws drive up the cost of public projects, siphoning money from taxpayers who could otherwise see their dollars fund more roads, schools, or bridges.

   Second, the true cost of prevailing wage laws isn’t just in the wages themselves—it’s in the crushing administrative burden they impose. Compliance can devour as much as half the allocated labor cost in paperwork, record-keeping, and certifications. Businesses must hire staff or consultants to navigate this red tape, ensuring every form is filled and every box checked. This isn’t work that builds infrastructure or improves communities; it’s busywork that enriches bureaucrats and bean-counters. Workers see little of this added cost in their paychecks, as much of it is burned on proving compliance rather than rewarding labor. Taxpayers, meanwhile, foot the bill for this inefficiency, getting less value for every dollar spent.

   Government’s sole duty in procurement is to secure goods and services at the best possible price. Anything else is theft from the public purse. Prevailing wage laws violate this principle by inflating costs and rigging the game against efficiency. They’re not about protecting workers—they’re about protecting a system that thrives on complexity and control.

   Worst of all, prevailing wage laws disproportionately harm small, local, and family-owned businesses. These firms, often the backbone of communities, lack the resources to employ full-time compliance officers or game the bidding process. Large corporations, with their armies of accountants and lobbyists, revel in this environment. They can absorb the costs, navigate the rules, and even exploit them to outbid smaller competitors. The result is a bidding process that tilts toward higher costs, fewer players, and less innovation—all paid for by the public.

   In all things, we should seek the simplest solution. Too many policymakers cling to a Ptolemaic view of public procurement, placing government-mandated wage controls at the center of the universe. To make this flawed model appear to work, they pile on endless complications—exemptions, justifications, studies claiming “no real cost increase,” and emotional appeals about “protecting workers”—much like astronomers once added layer upon layer of epicycles to prop up an Earth-centered cosmos.

   The Galilean solution is far simpler and far truer: move the center to where it belongs—the free market. Let wages be determined by supply, demand, and voluntary agreement. Let contractors compete on efficiency, quality, and genuine value. Suddenly, the retrograde illusions vanish: costs fall to realistic levels, small businesses can bid fairly without drowning in red tape, taxpayers get more infrastructure for their money, and workers earn competitive wages based on merit and productivity. No epicycles required.

   The solution is simple: abolish prevailing wage laws. Let markets determine wages, let businesses focus on building rather than filing, and let taxpayers keep more of their money. This isn’t abandoning fairness—it means embracing it by ensuring public funds are spent on actual work, not bureaucratic bloat. Small businesses would thrive, workers would compete on merit, and taxpayers would get the infrastructure they deserve. Prevailing wage laws aren’t just bad policy—they’re a betrayal of the public’s trust. It’s time to end them.

   Curtis Neil June 21st, 2025 (with Grok). Updated December 17^th. 2025. 

   Sources Supporting the Case Against Prevailing Wage Laws:

   These sources provide evidence on inflated project costs, administrative burdens, reduced competition, and disproportionate impacts on small businesses and non-union contractors. Readers are encouraged to review them directly for detailed findings.

2. Mackinac Center for Public Policy (2023): "The Costs of Prevailing Wage: Evidence From State Road Construction Spending" – Finds prevailing wage laws increase road construction costs by 8.5–14.3%.
   https://www.mackinac.org/S2023-04

3. Manhattan Institute (2023): "Costly Prevailing Wage Laws Harm Minorities and Younger Workers" – Details how laws create barriers for entry-level workers, small firms, and non-union contractors due to mandated rates and compliance complexity.
   https://manhattan.institute/article/costly-prevailing-wage-laws-harm-minorities-and-younger-workers

4. Associated Builders and Contractors (ABC) (Updated 2022): Compilation of studies on Davis-Bacon Act impacts, including wage inflation of ~22% and project cost increases up to 9.9%, with barriers for non-union and small contractors.
   https://www.abc.org/Portals/1/ABC%20Prevailing%20Wage%20Davis%20Bacon%20Studies%20Summary%20Updated%20March%202022%20031122.pdf

5. Terner Center, UC Berkeley (2024): "Low-Income Housing Tax Credit Construction Costs: An Analysis of Prevailing Wages" – Finds consistent cost increases in subsidized housing projects due to prevailing wage requirements.
   https://ternercenter.berkeley.edu/wp-content/uploads/2024/08/Low-Income-Housing-Tax-Credit-Construction-Costs-An-Analysis-of-Prevailing-Wages-August-2024.pdf

6. Capital Research Center (2011, still widely cited): "Prevailing Wage Laws: Greed Disguised as Public Policy" – Argues laws reduce competition and favor large, unionized firms over small/local businesses.
   https://capitalresearch.org/article/prevailing-wage-laws-greed-disguised-as-public-policy/