Happy New Year – Let the Obamacare Layoffs Begin

Obamacare - Affordable Healthcare Act

The politicians voted for more taxes on people who own businesses, particularly small businesses. Obamacare, the so-called Affordable Care Act, is about to demonstrate how unaffordable this healthcare disaster is.

Sometimes it takes some tough love to prove a point and if the beginning of this travesty is providing that then get ready to see economic woes, increased unemployment, hiring freezes and layoffs.

Businesses employing 50 or more people will begin slashing jobs and workers hours. When government increases the cost to do business it has a negative impact and that has an economic effect which has business owners looking for ways to cut expenses and stay in business.

I’ve always written that government does not create private sector jobs they create environments to destroy job creation. When government is creating public sector job, similar to the public hiring expansion under Barack Obama, you have costly, wasteful and bloated government.

Obamacare’s mandate goes into effect on January 1, 2014 but your government requires worker tracking schedules for 3 t0 12 months. What this meas is employer’s get a head start in avoiding Obamacare $2,000 per worker fines through workforce reduction in the form of firings, layoffs, or having fewer full-time workers and more part-time workers.

For example, the International Franchise Association has done a survey which finds that 31% of franchisees intend to reduce staff to fall below the 50 employee mandate. One other study by Mercer found that employers who don’t presently offer healthcare plan to reduce their workforce to avoid the 50 employee mandate.

One example of avoiding the Obamacare cliff was by reported Breitbart News, where Pennsylvania Community College of Allegheny County has already slashed the hours of 400 adjunct instructors, support staff, and part-time teachers to sidestep the Obamacare. Doing so will save the already cash-strapped college an estimated $6 million.

Other provisions of Obamacare such as taxing medical devices has already begun to cause layoffs as Stryker medical supply has cut 1,170 positions. Other medical device makers like Boston Scientific, Dana Holding Corp., Welch Allyn, Medtronic, Kinetic Concepts, and Smith & Nephew have similarly forecast the needs to cut hundreds of jobs each as the result of Obamcare.

One day after Obama was reelected one Las Vegas business owner fired 22 of his 114 employees citing that “elections have consequences.”

Adjusted unemployment numbers have show unemployment at 7.8% but workers off the rolls are not counted. 22.6 million Americans are either unemployed, underemployed, or marginally attached to the work force. Foodstamp usage is approaching 50 million American people. 41 percent of American workers are unemployed and real unemployment is closer to 15-19 percent, depending on what honest statistics are available.

Yes, elections have consequences, Barack Obama and his administration are a planned disaster for the American way of life.

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