The White House is looking at a new policy that would give an advantage in bidding on government contracts to companies that offer a “living wage” and generous benefits.

But business groups opposing the idea maintain it would shut out smaller businesses from competing for more than $500 billion a year in federal contracts and increase government procurement costs.
The policy is known as “high road” contracting and could draw President Barack Obama’s administration into a larger debate over whether the government should use public purse strings to strengthen the middle class and promote higher labor standards. continue reading

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