Docs show White House considers Big Labor policies, admitting it will increase cost of govt. 

According to Gautham Nagesh at the Daily Caller:

Documents obtained by The Daily Caller confirm the White House is seriously considering adopting a series of proposals that would favor unionized companies bidding on federal contracts. The documents acknowledge the proposals are likely to increase the cost of government contracting and the size of the bureaucracy.

The proposals, collectively known as “High Road Contracting Policy,” were first reported earlier this month. The basic elements of the policy would give preference to companies bidding on federal contracts that pay their hourly workers a “living wage” and provide health insurance, employer-funded pension plans and paid sick days.

This is an obvious payoff to unions, frustrated with the lack of quid pro quo from Democrats. And the White House is considering this even though they admit it will cost taxpayers significantly more:

However, in a draft of the policy obtained by The Daily Caller the administration acknowledges the proposals would increase contracting costs as well as the size of the bureaucracy. By the administration’s calculations the proposals would impact as many as 26 million people:

“Some part of the resulting increase in labor costs is likely to be passed on to the government in the form of higher bid prices … In addition, modest staff increases may be necessary to administer the policy.”

The document says those increases would be offset by savings on public assistance, productivity gains and increased price competition. Glenn Spencer at the U.S. Chamber of Commerce disagreed.

“One worry would be that some companies decide it’s just not worth it to engage in government contracting,” Spencer said. “What’s a little bit disturbing about [the proposal] is that it doesn’t require you to pay the higher wages and additional benefits just to workers on a specific contract, but to every employee in country. The impact on employers is likely to be far greater than actual cost of contracting. On that, it’s pretty clear costs will go up.”

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