Monday, December 27, 2010

Transaction costs!

A local-hire law was approved by San Francisco officials this week as an attempt to boost the local economy by requiring at least half of the jobs on city-funded construction projects to be comprised of local residents. The law was passed by 8-3, and a second affirmative vote will take place next week. Supporters of the measure have argued that it is one of the toughest laws of its kind in the entire nation, which is being billed as a way to supply local workers with good jobs. Financial penalties could be imposed on contractors who fail to meet the ordinance’s hiring standards.
California City News!
A bone head move as the Mayor understands, he might veto. This only works if many contracts can be combined into one, getting economies of scale.  The city council has a horrible socialist calculation problem that devolves into favoritism.

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