Critics warn plan will ‘sneak socialism’ into U.S., cause major economic loss
Aaron Klein
WorldNetDaily
2/28/2010
The White House is considering a new policy that would give an advantage in bids for billions in government contracts to companies that pay workers “living wages” and offer generous benefits.
WND has learned the “living wage” campaign has long been pushed by the radical Association of Community Organizations for Reform Now, or ACORN, and was largely initiated on a local level in the 1990s with the help of a socialist party of which evidence suggests Barack Obama was a member.
Critics warn a living wage advantage for more than $500 billion in government contracts could harm small companies, with case studies showing cities that enacted similar policies in the 1990s faced major financial losses. Business groups who oppose the plan say also it would increase government procurement costs.
The Associated Press obtained documents outlining the White House plan. The documents reportedly show the government would examine the wages and benefits – such as health insurance, retirement benefits and paid leave – a firm pays its employees as a factor in the process of awarding government contracts. Another factor would be whether a contract bidder is a repeat violator of labor and employment laws.
A Labor Department compliance office would compile a score on contract bidders based on the criteria and then determine which companies would get government contracts.
Writing about a similar policy that was being considered in Chicago in 2003, Steven Malanga of the City Journal stated the movement “sneaks socialism into cities.”
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