More of that "hope and change," no?
Yet, as many economists who are not working for the Obama administration have been consistently noting , that executive order will hurt employees and businesses.
The data are now coming in. Guess what? Employees and business are being hurt.
According to the Washington Examiner, the Deputy Assistant Secretary of the Navy for Military Manpower and Personnel, Russell Beland, estimates that the Navy alone is being forced by the executive order to eliminate 390 fast food restaurants. That translates into 5,750 jobs lost. Additional closures on Army and Air Force bases potentially could mean a loss of 10k additional jobs.
Here's why: Federal contractors face high costs on military installations than in local neighborhoods. To wit:
- They must pay workers a "health and welfare" payment. The Obama administration raised this payment in 2013 from $2.56/hour to $3.81/hour. The health and welfare payment had not been required for fast food businesses but, lo and behold, the Obama administration made it mandatory in Fall 2013.
- That $3.81 in addition to the $2.85 wage increase requires employers to pay $6.66 more/hour/employee. These payments do not include other Obama administration mandates, which include paid holidays and vacation time.
That's bad enough. But, imagine running a business with the following requirement: Military contracting law prohibits businesses from raising prices above the level that prevails in the community.
That's real "hopium and changium" for the nation's military personnel, isn't it?
Perhaps President Obama was forced to do this. It might all be part of something that's much larger: Enforcing Mrs. Obama's "Let's Move" campaign to compel the nation's citizens eat more healthy diets.
Let the discussion begin...
To read the Washington Examiner article, click on the following link:
"Obama's Work Edicts Could Kill Businesses on Military Bases."