Unintended Consequences, The Affordable Care Act Already Hurting the Employment Situation

FF CC

Companies are curtailing hours in an effort to obey the Obamacare mandate. If a company has 50 or more employees they must provide health insurance to any worker working 30 hours or more. The alternative for the company is a stiff fine. Managers at Burger Kings and Taco Bells across the nation are sharpening their pencils and changing shifts.

The poor and unskilled are the ones who will feel the pain first (as is usually the case). But small business owners, as the Wall Street Journal reports, are feeling it too. The cost of reducing workforces and shuffling people around is immense, especially in the food service world where margins are thin and getting thinner.

But some companies and many unions won’t have to comply (at least for a good while) as they got waivers from the mandate from the White House. This is a huge advantage for those lucky enough to get an executive blessing. Why is it that Papa Johns must comply but the International Union of Bricklayers & Allied Craftworkers does not have to?

It’s good to have friends at 1600 Pennsylvania Avenue I guess.

This is not what the economy needs right now. But you know what would be a good idea? Raising the minimum wage. That’ll help the economy.

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63 comments
cgregor
cgregor

Brad Childress, after Vermont gets through the ACA-mandated "insurance exchange" period which the health insurers demanded (to squeeze as much as they could out of even more of the population) and into its universal, affordable, single-payer health care system going, you will want to move to Vermont to run your business.  

 

No workman's comp insurance to pay, no surprise rate hikes for employers, and no battling with an apparatchik about pre-existing conditions, choice of providers, providers' decisions.  No battling the unfair competition of businesses who unlike yours provide no health care benefits.  No job applicants having to conceal medical conditions from you.  Lower health-related absenteeism.  No top-notch employees leaving your business for a job providing better health care benefits.  No worry of having your business bankrupted by your personal illness or medical tragedies that befall your family members.  

 

We in Vermont value you as an employer, we value workers, and we do our best in Vermont to take care of those who work and live here, because "without good health, it's just life; with good health, it's the start of living well."  And no state values living well as much as Vermont does.

Bradd Childress
Bradd Childress

Class warfare, or in Biblical terms, coveting. Old and worn out, come up with something new. The class that is making the big bucks off of the little guy is also the same one telling you to hate rich and successful people. Coveting the rich is one thing, forcing them to "give" at gunpoint is theft and pathetic.

Harold Greenhalgh
Harold Greenhalgh

More plundering class attempts to get out of sharing the bounty of capitalism.

Bradd Childress
Bradd Childress

The government has created this situation on purpose to cause a collapse from within and to get bigger. The very nature of government is to grow and the best way to do that is to create job demand, tax the hell out of people for it and offer government jobs. You now have power, money, and the prosperity of the non-government citizen is weak.

Bradd Childress
Bradd Childress

Then you are worth less than you think you are. We are devalued by the importation of illegal labor, the exporting of our industries, and an economy that is broken and in shambles. People are deperate for jobs because the value of labor has been lowered due to the real problem. If you can't get a better job, go back to school, learn something, or increase your personal value. It isn't the job of an employer to change your diapers. Poor people are poor either as a stepping stone to achievement (many people were poor as they learned a trade or went to college) or as a lifestyle choice. No one owes you a good career. You need to sell yourself and if you aren't happy with what you are worth, increase your value.

Steven Russell
Steven Russell

If you don't like the compenstion package your offered don't take take it?really?how about i'm better off on welfare.most working poor take what ever shit jobs they can get.

Steven Russell
Steven Russell

Most people i know are lucky to have a job they hate because it's the best they can get.and if people can't get what they need from there job then where else but Government are they going to get it?in this county were obsessed with youth,money and sex and were so busy telling everybody were #1 we won't look at our real problems.

Calvin Perry Goforth
Calvin Perry Goforth

It always sends shivers up my spine when somebody says "there should be a law about......." for the very reason of the law of unintended consequences.

David Altschul
David Altschul

I'm hopeful you were being tongue-in-cheek about raising the minimum wage, a practice that always increases unemployment among minority teens, decreases productivity, raises prices, and weakens the dollar.

Bradd Childress
Bradd Childress

Benefits are part of your wage and thus subject to change.

Bradd Childress
Bradd Childress

I am responsible for myself, not my employer. I don't expect to flip burgers at McDonalds and feed a family of six. If you dont like the compensation package you are offered, leave and get better. If you can't get better than your value is much less than you think it is. An employer is not your parent, nor does it own you. What you are asking is called slavery, where a business is responsible for your well being and life. No one owns you, if you don't like your pay, get a better job.

Bradd Childress
Bradd Childress

I already have been in business before, just as you have. Compensation packages are based on the value of the workers. You, once again, don't understand basic economics and supply and demand.

John Lehman
John Lehman

Nothing unintended about it. It's high time the Liberty movement stopped using that word. It allows the politicians and plutocrats to get away with looking incompetent - instead of evil, which is what they really are.

Steve Mansker
Steve Mansker

Brad, wages and benefits are both components of ANY employer's 'compensation package'. I have worked, by the hour, for a number of companies and the wages and benefits are ALWAYS lumped together. It is how much an employer compensates the employee. They are not separate items in the budget. The employer decides how much he is willing to pay, total, per hr/month. Wages and benefits are not negotiated for as separate items. In the case of a trade union, the 'number' is agreed to and the union employees decide how much of that number will be wages, how much will be insurance,(insurance is usually a set amount) vacation pay, retirement, etc., all included in that compensation package. I wish you the best of luck with starting your own business. It will be a great education for you.

Larry Gouker
Larry Gouker

They keep adding pages faster than you can read it.

Bradd Childress
Bradd Childress

You owned your own business? You evil greedy Capitalist rich guy!!!!! Give us all your money!!!!!!

Bradd Childress
Bradd Childress

Also Steve, typos and spelling things wrong are completely different. Stating you are smarter than someone else while confusing words is not smart or good for your argument. I know your answer, you want to force the evil rich people to buy us spell checkers and bigger phones.

Bradd Childress
Bradd Childress

Employers who pay their employees extra because they are nice quickly find themselves working for someone else who doesn't do this for obvious reasons. Would you buy gold right now at $3,000 per ounce? Of course not, its value isn't that high. Workers, employers, and businesses are all subject to supply and demand. You are askig for forced Socialism so you can greedily loot those you covet. Go move to France.

Bradd Childress
Bradd Childress

Steve, you are stating the symptom as the problem but ignoring the real issue. Wages are low BECAUSE of a failing economy, not the other way around. People pay low because they will pay the least they can for whatever service they require, just as people accept bids for work and get the lowest bidder. Saying that low wages create a failed economy is like saying that the current unemployment rate is because businesses don't hire people they can't afford because they are mean, greedy, or whatever. Sounds like a theif to me, coveting their bosses and wanting what they have without wanting to go out and earn it.

Steve Mansker
Steve Mansker

syep? 'and not only to? we lack it' It only hurts may case if you're extremely anal. None of us are perfect. lol

Steve Mansker
Steve Mansker

People don't seem to understand that there is a correlation between falling wages and the state of the economy. Less wages=weaker economy. The rich get richer and the poor get poorer. When the car companies got major wage and benefit concessions from the UAW, did cars get cheaper or did the profit margins increase? When builders broke the carpenter's union and started payin $10 per hr. instead of $20 per hr. did houses get cheaper or did the profit margins increase? When ANY employer cuts wages and benefits is there a corresponding reduction in the price of the product they sell? The answer to all of the above is a resounding NO! Companies don't cut hours and wages because they can't afford it. They do it to increase the profit margin. I have owned my own business. When the cost of raw materials went up, I increased the cost to the consumer. I didn't cut hours and wages for the employees. The employees were the best asset I had. Every hour that they worked, I made money. My employees were paid at a rate approx. 15% higher than the average for that type of work (contruction) in my area, plus bonuses. Guess what, I made a profit every day that I was in business. Businesses that cut wages and benefits only hurt themselves in the long run. The practice kills incentive and morale. During the 'great depression' Henry Ford gave EVERY ONE OF HIS EMPLOYEES A RAISE. Gee, I wonder what ever happened to Ford Motor company? Oh, that's right, they are one the biggest, most profitable car companies on the planet.

Michael Goldschmidt
Michael Goldschmidt

So it is greed, Mr. Mansker, when businesses seek to maximize THEIR profits, but not greed when you seek to maximize YOUR income from selling your labor? What's the difference?

Michael Goldschmidt
Michael Goldschmidt

...but getting the most you can out of an employer, Mr. Mansker, isn't greed? Why is it only greed when an employer wants to maximize income, but not greed when you want to maximize yours?

Michael Goldschmidt
Michael Goldschmidt

You understand supply and demand curves, Mr. Mansker? Demand for most things isn't inelastic. When prices go up, demand for most things goes down. Good luck when you lose YOUR job, because the business you work for has to tighten its belt, Steve. You can't piss on people forever who employ you.

Diana Reid
Diana Reid

I do not see Obama running to the podium to address this. Like he cares.

Bradd Childress
Bradd Childress

I do agree with you that I should not have to pay for someone else's healthcare or anything else against my will. I take that a syep further to businesses and government as well. Liberty is the ability for one to govern themselves and not only to we lack it but we purposefully give it away to avert personal responsibility. Want to fix the problem? End Socialist policies, deregulate, and put in a Constitutional amendment creating a seperation of state and economics.

Michael Benghazi Wilson
Michael Benghazi Wilson

We have been lied to about Obamacare from day 1. They should throw it out completely along with the lying Liberal Democrats who shoved it down our throats while exempting themselves from it.

Bradd Childress
Bradd Childress

Lastly Steve, while saying someone is a moron, please know the difference between your and you're; it really hurts your case.

Bradd Childress
Bradd Childress

I firmly believe that forcing others to pay for me or my "healthcare" is stealing and I'm no petty theif. No one owes you anything, you are the sum of what you make for yourself. If I want better healthcare and benefits, I go out and find a way to get them. What I don't do is attempt to force an employer that is being screwed left and right by our government to give me stuff, while they pay huge taxes to give people stuff. My employer isn't my parent, doesn't own me, and doesn't owe me any more than I have agreed to get by staying there.

Bradd Childress
Bradd Childress

My employer has severely cut my wages to the point that I will be leaving in two months and going to start my own. It isn't my employer's job to change my diaper and give me what I want like Santa Claus.

Steve Mansker
Steve Mansker

And you're a moron...but we didn't know that until now....

Steve Mansker
Steve Mansker

Exactly the same place they get the money when the price of raw materials, electricity, water, natural gas and other costs of business go up. They will pass the increase on to the consumer. The same way that they have done since 'business' started.

Steve Mansker
Steve Mansker

That's plain old greed. The new american business model.

Steve Mansker
Steve Mansker

I think it is more affordable than ME paying for someone else's health care. There is a percentage of MY monthly premium that goes to pay for people with NO health care. How about a little conservatism here, its called personal responsibility.

Steve Mansker
Steve Mansker

Brad, you sound like a guy with a good job. How would you feel if your employer suddenly decided that he wanted to cut you wages, and eliminate your healthcare and vacations. You'd be ok with that, right?

Steve Mansker
Steve Mansker

Two more businesses that I will refuse to patronize. The owners of these businesses are unwilling to do anything for the very people who provide their income. Plain old greed. The new american business model.

Aidan Haggerty
Aidan Haggerty

More cronyism BS. I'm tired of it. Raising the minimum wage isn't working, neither is Obamacare...I hope I can find a job at the end of the year.

Nickolas Anzelmo
Nickolas Anzelmo

I think ending the wars and federal reserve would do more than raising the minimum wage by the power of ten.

Gary Griswold
Gary Griswold

The business in my neighborhood are disappearing too. Looks like obama's master plan is right on schedule. Oh, you sheeple who voted for him didn't know? He is the antichrist.

Loren Wilson
Loren Wilson

Many companies have been controlling workers hours for years as a way of avoiding benefits. The Affordable Care Act has less to do with this than the fact that workers have nobody to fight for them.

Loren Wilson
Loren Wilson

Businesses have been doing this for a long time to deny benefits to their workers,  Using the Affordable Care Act as a cause is specious at best, and almost certainly self-serving.

Saeid Nourian
Saeid Nourian

It's called personal responsibility. If you live in this society you must have health insurance. Other people shouldn't pay for your hospital bill when you get sick. If businesses can't afford it then they should raise the price of their goods. Some people seem to be obsessed with not wanting to pay the real cost of goods.

Ed Lilly
Ed Lilly

My wife started working a full time job. Obamacare was passed, they told her she is part time, it was a mistake, now she works a second job and will aft to buy health Ins. to comply with Obamacare!

Bradd Childress
Bradd Childress

To the people who confuse business owners with Santa Claus: people are paid what they are worth. If WalMart couldn't find people to take their jobs, they would increase the pay until people did. However, with free trade, imported illegal workers, and massive taxes and regulation, there isn't enough business to keep people working, thus there are too many workers. This means the value of those workers are less. A little less time coveting and wishing for Santa Claus and a little more time with logic and reality please.