President Obama and his team of economic advisors are continuing their crusade against entrepreneurs and small companies that are the traditional engine to economic growth. The latest anti-business Obama policies appear in a just-released Executive Order 13495, a new rule to be enforced by the Department of Labor. This particular regulation is aimed directly at small business owners and attacks small businesses' most valuable asset--their employees.
Executive Order 13495, which will be both complicated and costly to enforce, represents just another example of Team Obama’s complete lack of understanding of the concerns of small business owners. After 15 years as a small business owner, and as the former Administrator of the U.S. General Services Administration, I've been to the circus a few times and seen all the strings connected the federal government and its indifference to the plight of small business owners. For small businesses, Executive Order 13495 is perhaps the most damaging action yet to come out of the Obama Administration.
First, in our country, a business has the freedom to hire the workers it thinks are best suited to ensure the company's success. The new Team Obama contracting rule tramples over that basic, capitalist principle by requiring any company which wins a federal contract to hire the employees that the government identifies.
This means that the government has new and expanded powers to direct the hiring, firing and promotion of employees at private companies.
Second, government contracting is challenging and intensely competitive. Profit margins are wire thin. Companies need to have the freedom to hire those whom they best believe can provide the best value to the government at the lowest cost. This new rule will make that kind of entrepreneurial freedom almost impossible as the federal government forces the company into employment and salary negotiations with persons of the government’s choice, with the government participating in the negotiation process.
Third, this new rule shows that Team Obama has no understanding of the challenges facing small businesses. Small businesses create 3 out of every 4 jobs in the United States. Small businesses are the source of much of the innovation in the United States. They are more agile because of their size and more willing to take risks.