Got fifty workers? Fire one, and don’t hire any more

That’s what’s happening as ObamaKare’s mandatory insurance program nears implementation January 1st.  Unlike the marginal tax rates on “millionaires” (actually, two-income families earning a total of $100,000) that Regressives are so eager to impose on their fellow citizens, it’s not the extra dollar over $100,000 that will be taxed at a higher rate: adding a fiftieth worker triggers the requirement to provide insurance for all fifty employees.

It may well be that a growing small business will want to expand regardless of the cost of providing health insurance because the increased profits exceed that cost. But as we’ve seen in France and Italy, it is just as likely, if not more, that businesses will choose to stay under the threshold because they can’t afford to go over it. If so, the job recovery Obama promised just a few weeks ago won’t happen.

11 Comments

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11 responses to “Got fifty workers? Fire one, and don’t hire any more

  1. Al Dente

    But president Obama said he had my back! Actually, I think someone is standing behind me, and I hear the sound of a zipper. Uh oh.

  2. Anonymous2

    I’ll not argue that employers will make staff changes to dodge Obamacare. However, officially at least, there’s a chance the changes you describe will, in our world of Soviet-style statistics, make Obama look like a savior.

    Apparently the trigger for Obamacare is 50 full time employees, that is, those working 30 or more hours a week.

    Were an employer to switch a couple of them to part-time under 30 hours to avoid the Obamacare trigger, the employer might decide the work each of the two workers used to do while full-time still needs to be done, and thus would hire an additional part-time employee to fill the gap.

    Note that U3, the unemployment rate reported by the mainstream media each month, counts part-time workers as “employed”. Thus, switching two full-time workers to part time doesn’t increase unemployment and adding a part-time worker as described above would theoretically reduce unemployment, making Obama look good. The fact that these part-time workers might want, and desperately need, full-time work isn’t taken into account. To see a reflection of workers’ dissatisfaction with part-time work you need to go to the U6 rate which accounts for part-time workers seeking full-time jobs. But who, besides conservative media, reports U6?

    Probably the bigger question is whether Obamacare is setting off a major realignment of work in this country. Are we about to see full-time employment phased out in favor of part-time employment requiring workers to juggle two or three part-time jobs with commensurate lower rates of pay and probably zero benefits?

    Given recent news stories it appears that has already begun in lower paying service jobs. Aren’t these the people who voted for Obama?

  3. Daniel

    What about the individual mandate? Gonna create a whole new level of government to manage. That’s gotta be a win for big government.

  4. Balzac

    “The voters have spoken, and now the voters must be punished” – Ed Koch.

    The Obama victory was due to two tactics of pure Alinsky-ism: a) stimulate the resentment, channel the resentment and b) freeze an issue (inequality) personalize it (Romney), kill it ($1 billion in negative ads).

    Who wants to bet that unemployment ever gets under 6% with Obama? Didn’t Bush have months in the 4%s? Will the media notice?

  5. db

    “The Obama victory was due to two tactics of pure Alinsky-ism: a) stimulate the resentment, channel the resentment and b) freeze an issue (inequality) personalize it (Romney), kill it ($1 billion in negative ads).”

    You mean Republican’s were outplayed at their own game.

  6. Walt

    Dude –
    I find it odd you didn’t post anything about the 49th anniversary of JFKs assassination. We all know you did it from the Grassy Knoll, you little weasel. So let’s just monetize it, OK?

    This is a pretty good article, and if you watch the film, it is clear the kill shot hit him in the right front temple. How does anyone not believe that?
    http://motherboard.vice.com/2012/11/23/the-other-shooter-the-saddest-and-most-expensive-26-seconds-of-amateur-film-ever-made

    How did you meet Jack Ruby? Were you attracted to the strippers and free lap dances? You weak little man. Did you meet Castro? Did he give you free cigars and take you to donkey shows? Did you debrief LBJ while he took a dump, and held his dogs up by their ears?

    Next year is the 50th anniversary, so there will be a lot of press on this. We can clean up. Call the Umbrella Man. Is Marina still alive? We can cash in on this if you just come clean. What is stopping you? The gay sex parties at Clay Shaw’s? Get over it.

    You Mongoose.
    Your Pal,
    Walt

  7. Daniel

    Is your solution for equality the continued printing of money or growing the private economy? What we doing now will not work. Last year the courts were shutting courtrooms. This year? Courthouses. In LA County the largest system in the country and the world.

  8. AJ

    I predict the next president, who will be hailed as a gift from the gods, will be a single bodied, double headed, racially mixed, siamese twin that will be liberal on the left side and conservative on the right, that will deliberate amongst itself, and after finding consensus within its body politic, will govern straight down the middle.

  9. Walt

    Dude –
    I don’t know who Fiona Apple is. I never heard of her before. But now I think I love her. She made me cry like a little bitch, when I read this:
    http://www.starpulse.com/news/Kevin_Blair/2012/11/24/fiona_apple_postpones_south_american_t

    I will buy her albums, father her children, and comfort her in a very sexual way in her times of need.

    Her understanding of life and what is important is sexually attractive.
    I respect her compassion. That is what Thanksgiving is all about.
    She gets it. And for that I respect her. Even though I would like to treat her like a little slut.

    I admire her priorities, and wish her all the best.
    Some people are best when times are worst. She seems like one of those people, and I respect that.

    Your Pal,
    Walt

    • She makes great music, Walt, besides having her head and her heart and her soul in the right place. I suspect neither of us would like her politics, but that’s a quibble. Thank’s for the link.