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View Diary: Obama could give these striking low-wage workers the raise they need (26 comments)

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  •  Can he actually do it? (0+ / 0-)
    •  Yes, he can (4+ / 0-)
      Recommended by:
      shaharazade, FG, Mr Robert, Munchkn

      President's can issue Executive Orders directed towards government contractors and how they conduct business using federal funds.

      Jimmy Carter used Executive Orders to give EEOC authority to enforce Equal Opportuny regs with all government contractors, among others.  EEOC began overseeing an initiative to require federal contractors abide by the law.

      Link

      Obama could issue something similar, requiring federal contractors to pay workers a living wage.  When a company contracts with the federal government, they are required to follow guidelines as requested.  POTUS has the authority to mandate certain guidelines be followed.  

      It's also been suggested that he use the same process to require more government contractors to employ US workers and give preference to US subcontractors and suppliers who employ US workers as a form of economic stimulus and job creation.

      "If you can't take their money, eat their food, drink their booze and then vote against them, you have no business being up there."

      by Betty Pinson on Tue May 21, 2013 at 11:00:08 AM PDT

      [ Parent ]

      •  So, he can make money out of thin air (0+ / 0-)

        to pay employees with?  Raising salaries is not the same as enforcing existing laws.

        "But the problem with any ideology is that it gives the answer before you look at the evidence." - President Clinton

        by anonevent on Tue May 21, 2013 at 11:36:18 AM PDT

        [ Parent ]

        •  Contracting is a competitive process (0+ / 0-)

          if, for example, the WH were to set a new floor for employee wages on government contracts, it would be up to the contractor to find a way to make it work.  It's no secret there is plenty of profit to be gained in federal contracts.  Ask KBR.

          New government contracts are bid, negotiated and awarded every day.  Setting a new wage floor as part of the bid request doesn't mean the cost of contracts will increase.  Competition will keep the cost to government under control.

          "If you can't take their money, eat their food, drink their booze and then vote against them, you have no business being up there."

          by Betty Pinson on Tue May 21, 2013 at 01:30:18 PM PDT

          [ Parent ]

          •  And the bids would go up. (1+ / 0-)
            Recommended by:
            Whatithink

            But there would be no more money to spend w/o Congressional approval, so something would have to be reduced (perhaps the hours the facilities are open for example) or revenue increased for those services that derive direct income (perhaps the price of a salad would increase by 30%).

            It is unlikely that the bids wouldn't go up at least some portion of the wage increases. After all, the bidding process is already competitive, so ridiculous margins are already squeezed out - at least in theory, and that's the theory you are relying on for your analysis.

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