President Barack Obama -- A clear and present danger to taxpayers, the economy and the American system of free enterprise.
Here’s a summary and commentary.
New York Times:
Plan to Seek Use of
By STEVEN GREENHOUSE
Published: February 25, 2010
Obama Aims to Use Federal Contracts as a Way to Lift Wages - NYTimes.com
SUMMARY:
From the NYTimes:
"The Obama administration is planning to use the government’s enormous buying power to prod private companies to improve wages and benefits for millions of workers, according to White House officials and several interest groups briefed on the plan."
"By altering how it awards $500 billion in contracts each year, the government would disqualify more companies with labor, environmental or other violations and give an edge to companies that offer better levels of pay, health coverage, pensions and other benefits, the officials said."
COMMENTARY:
How big is this::
This is big because nearly one in four workers is employed by companies with federal contracts. That means they are paid with our money.
Normal bidding process
The normal government bidding process is supposed to be to choose suppliers who provide the best value for the lowest cost. This gives taxpayers the most for our money.
Proposed inverted bidding process
The Obama government proposes to invert this bidding process and award contracts to companies with higher labor expenses from higher wages and benefits. Therefore, taxpayers pay more for what we get.
Fiscal irresponsibility
The fiscal irresponsibility of making Americans pay more for what they receive can hardly be overlooked when the American people are faced with trillions in government deficits.
To those who might argue that the companies should pay these costs out of profits, I say that if you drive profits down enough no one will want to invest in the company. There are plenty of alternative investment opportunities available. Without equity companies will lay off workers and go out of business.
Union favoritism and reciprocation
Companies with higher wages and benefits are most likely to be closed-shop union companies. The inverted bidding process will guarantee union employment and benefits with taxpayer dollars. This favoritism will not be lost on the unions, who will respond by giving Obama and liberal politicians their enthusiastic political support in donations and votes.
Obama controls
Who will decide which companies are eligible to bid for government work on the basis of “fair wages and benefits?” The Obama administration will. Look for another expensive group of government bureaucrats to study companies and draw up the eligibility list. Will these bureaucrats have capitalistic beliefs? Not on your life.
The unmentioned criterion for a winning bid
Suppose two companies competing for a contract are about equal in wages and benefits. Who gets the nod? Bet on the company that most strongly supports the democratic party.
Share the wealth
The social effect of inverted bidding is redistribution of wealth – galloping socialism. The wealthier pay more in taxes and via inverted bidding these dollars will be redistributed. During his campaign Obama said we should share the wealth. That’s the intent of the inverted bidding plan, and its intent is but thinly veiled.
Support for big business
Obama claims to support small business as the “driving engine of the economy.” Inverted bidding will favor big companies, which are more likely to be presently unionized. A small company will be out of the running for government contracts unless it competes with a big company on the basis of what it pays its workers. Unions drive up wages and benefits and have contributed to the damage and demise of the domestic auto industry and newspaper industry, to name two.
Big, bad, Bush again (and Cheney, too)
The Obama administration has complained that some large contracts during the Bush administration were placed without bidding. This is an obvious reference to Halliburton’s role during the
Inverted bidding is worse than no bidding at all.
Summary:
Under the guise of driving the economy, and expanding and improving conditions for the middle class, the American people will get cheated, the democrats will increase their power, and
Socialistic solutions are the only kind that the Obama people understand.
Government doesn't have to own companies to force socialism upon us. All they need to do is control them.
Chuck
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