Why American construction costs are so high (2019)
I don&#x27;t see this discussed at all, but if you&#x27;re going to use New York City as your exemplar and you&#x27;re going back to 1910 for data, I don&#x27;t see how you can avoid the fact that both labor unions and the construction companies were under the control of the mafia. They put people on the payroll to do literally nothing, sold materials at way above market value, and the buyer had no choice but to pay because anyone underbidding would get murdered.<p>Unfortunately, the ratchet effect for pricing means getting rid of mafia control doesn&#x27;t necessarily undo the cost increases they dictated. Also, prevailing wage practices mean labor unions for the same trades that aren&#x27;t themselves corrupt still end up with the same price inflation, at least regionally.