As their previous actions have shown, the Obama administration has proven it has no idea what a functional economic policy looks like. Obamacare is the biggest example of this, but the Department of Labor has just given us another. They are creating what amounts to a blacklist rule to help determine which private businesses are awarded government contracts. Using a 2014 executive order, here’s what they are planning to do, per the Washington Free Beacon:
The regulations could restrict federal agencies from working with companies that have been accused of labor violations or have long track records of “serious” or “pervasive” violations. It forces government agencies to hire “Labor Compliance Advisors” to oversee contractors. Companies will also be forced to disclose pay determinations to employees and regulators over the course of the contract.
On the surface, this might not sound like a bad idea. After all, we wouldn’t want our own businesses to work with companies that have poor track records of labor law violations, right? However, when you look at the rule’s consequences in greater depth, problems start to appear. One of these is the issue of redundancy. As a joint statement from Representatives Rep. Phil Roe (R-TN) 92% (R-TN) and Rep. Tim Walberg (R-MI) 88% (R-MI), who chair the relevant subcommittees on the House Committee on Education and the Workforce, says:
Bad actors who choose to operate outside of the law and deny employees basic protections should not be rewarded with taxpayer dollars.That is why we already have a system in place to deny federal contracts to these bad actors. Instead of promoting more government overreach and more regulations, the administration has a responsibility to ensure the current system is enforced and used effectively.
Redundancy is such a common problem with the government. Whenever a story like this surfaces, I always think back on the list produced by former Senator Tom Coburn back 2011 that highlighted between $100 and $200 billion in government waste from redundant programs alone. Despite the fact that we already have the rules in place to prevent the government from working with bad companies, President Obama has to put his own special touch on this, even if it means redundancy.
