-By Warner Todd Huston
Donald Lambro has a great piece discussing the new rules that Obama wants to impose on every single business in America that derives even the tiniest part of its income from the federal government. In essence, Obama wants to impose Project Labor Agreements (PLAs) on everyone.
As Lambro says, Obama wants to “shatter decades-old, competitive contract rules that seek the best quality work at the lowest price” and this would cost government untold billions in higher costs as well as destroy untold thousands of small businesses that won’t be able to support the wild increase in their expenses. This will also cost thousands of jobs and give great payoffs to unions.
In the still-little-known initiative taking shape in the White House, senior officials are working on regulations that would use the full power of the government’s vast $500 billion a year contracting business to favor firms ,that offer higher wages and economic benefits, while ruling out firms whose wage, pension and even environmental record may not meet with the administration’s approval.
The Obama Administration is perpetrating the absurdity that this policy of forcing every business that does business with the government to increase wages and benefits to come in line with union benefits will somehow save the federal government money.
Lambro, though, says that many are disputing this “fact.”
“The other thing about this,” adds Cato’s Tanner, “they tend to squeeze out a lot of small, minority or women-owned businesses because they don’t have the financial wherewithal to pay higher wages and their ability to compete for contracts is often based on their lower, nonunion wages and thus their lower prices.”
“They couldn’t necessarily compete with a lot of these larger, more establishment companies, and when you force higher wages you often freeze these companies out of the running,” he said.
Of course, this is Obama’s plan. He wants to destroy as many small businesses as he can in order to force more people to rely on government and those that don’t have to do so will be in those unions to whom he wants to give multi-million dollar payoffs.
Go on over to Lambro’s piece and take a look.