Obamacare shows the logical fallacy of liberalism
Shortly after Nov. 6, Zane Tankel, who runs 40 Applebee’s restaurants in the New York City area, announced that his company was freezing employment and would not build any new restaurants. President Obama’s re-election, Tankel explained, meant that ObamaCare was likely to be fully implemented, costing his company millions of dollars and significantly raising the cost of hiring a worker.
Tankel’s statement prompted outrage and threats of a boycott, but he was far from alone. Already John Schnatter, CEO of Papa John’s Pizza, has announced that he would likely lay off some workers. Earlier, Schnatter said that ObamaCare would cost his business $5 billion to $8 billion annually, forcing him to increase the price of pizzas.
Meanwhile, two other restaurant chains, Olive Garden and Red Lobster, are moving many of their employees from full- to part-time work in order to avoid the law’s mandate that anyone working more than 30 hours must have insurance. An owner of 40 Denny’s in Florida, meanwhile, says he’ll add a 5% surcharge to customer bills in 2014 to cover his increased costs.
While restaurants, with traditionally low profit margins and large numbers of low-skilled, low-wage workers, are exceptionally vulnerable to ObamaCare’s costs, other business are being hit too. For example, Boston Scientific has announced that it will now lay off up to 1,400 workers and shift some jobs to China.
And Dana Holdings, an auto-parts manufacturer with more than 25,000 employees, says it to is exploring ObamaCare-related layoffs.
These, and countless other employers across the country, are not doing an impression of Montgomery Burns. They are simply responding to economic reality.
Under ObamaCare, employers with 50 or more full-time workers must provide health insurance for all their workers, paying at least 65% of the cost of a family policy or 85% of the cost of an individual plan. Moreover, the insurance must meet the federal government’s requirements in terms of what benefits are included, meaning that many businesses that offer insurance to their workers today will have to change to new, more expensive plans.
ObamaCare’s rules make expansion expensive, particularly for the 500,000 US businesses that have fewer than 100 employees.
Suppose that a firm with 49 employees does not provide health benefits. Hiring one more worker will trigger the mandate. The company would now have to provide insurance coverage to all 50 workers or pay a tax penalty.One of the things this tells you about liberals is that they don't care that their policies hurt business or the people who don't get jobs because of them. They simply don't care. They will blame the business for being greedy for choosing survival over suicidal social policies.
Overall, according to the Congressional Budget Office, ObamaCare could end up costing as many as 800,000 jobs.
I think the 800,000 lost jobs is probably a conservative number. Since the election there have been thousands of layoffs and closings already and it is only the beginning. Meanwhile look for small business to keep their number of employees under 49.