Category Archives: Economy

Economic Issues, Taxes, Capitalism

Obamacare is a lot like Crystal Pepsi

BUMPED: As Obama enjoys his “Mission Accomplished” moment and promotes his fictional 8 million number like a carnival barker, you need to remember Crystal Pepsi and why it failed.

Remember Crystal Pepsi? Think back to about 1993.

Crystal Pepsi was rolled out in 1992 with much fanfare and and a huge advertising campaign. Sales were good. In fact, they were better than Pepsico had expected. Sales were very good.

And yet they discontinued the product. Why? It turned out that Crystal Pepsi buyers were consumers who were already Pepsi customers. Virtually all of the Crystal Pepsi marketshare was taken from Pepsico’s mainline cola product. Sales looked good but almost every sale of Crystal Pepsi resulted in a commensurate drop in sales of Pepsi Cola.

This is called market cannibalization and it can make a failing product look good as it creates a very negative impact on sales performance of the company’s existing related products. The joy of the Crystal Pepsi product team came with commensurate suffering among the Pepsi Cola team. The net effect was the increased cost of separate production and distribution lines but no real increase in revenue. Crystal Pepsi had to go.

How is that like Obamacare? Almost nine out of ten Obamacare enrollees already had insurance.

Most of the people who have signed up for Obamacare coverage already had insurance, raising questions about how the healthcare overhaul will reduce the number of uninsured Americans, a new survey reveals.

Just 11 percent of those buying through the healthcare exchanges were uninsured, a McKinsey & Co. study of 4,563 consumers discovered, reports The Wall Street Journal.

Meanwhile, nearly two thirds of the people jumping into Obamacare were switching from individual or employer-paid insurance plans.

Obamacare was aimed at providing insurance for 25 million of the 48 million Americans who were uninsured in 2012, partially by expanding state-run Medicaid programs.

So tonight, as Obama praises the number of people who have signed up for Obamacare, remember two terms: 1) Market Cannibalization and 2) Crystal Pepsi.

We can rest assured that, in the coming years, Obamacare will be as relevant and successful as is the clear, crisp Crystal Pepsi is today.


Gawker: “Income Inequality Institute Will Pay Paul Krugman $25,000 Per Month”

This is a joke, right?

No it isn’t.

Progressives take care of their own.

I'd be smug too

I’d be smug too

In late February, the City University of New York announced that it had tapped Princeton economist and New York Times blogger Paul Krugman for a distinguished professorship at CUNY’s Graduate Center and its Luxembourg Income Study Center, a research arm devoted to studying income patterns and their effect on inequality.

About that. According to a formal offer letter obtained under New York’s Freedom of Information Law, CUNY intends to pay Krugman $225,000, or $25,000 per month (over two semesters), to “play a modest role in our public events” and “contribute to the build-up” of a new “inequality initiative.” It is not clear, and neither CUNY nor Krugman was able to explain, what “contribute to the build-up” entails.

It’s certainly not teaching. “You will not be expected to teach or supervise students,” the letter informs Professor Krugman, who replies: “I admit that I had to read it several times to be clear … it’s remarkably generous.” (After his first year, Krugman will be required to host a single seminar.)”


ZH: 40 Central Banks Are Betting Yuan Will Be The Next Reserve Currency


From Zero Hedge:

As The South China Morning Post reports, Jukka Pihlman, Standard Chartered’s Singapore-based global head of central banks and sovereign wealth funds (who formerly worked at the International Monetary Fund advising central banks on asset-management issues), notes that:

At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility
The US dollar remains in charge (for now)…but

The US dollar is still the world’s most widely held reserve currency, accounting for nearly 33 per cent of global foreign exchange holdings at the end of last year, according to IMF data. That ratio has been declining since 2000, when 55 per cent of the world’s reserves were denominated in US dollars.”


Didn’t Make The Obamacare Deadline? No Insurance For You.

There are a lot of details in all those thousands of pages. Pelosi was right. Now we’re finding out what was in the bill.

From the AP via Yahoo:

WASHINGTON (AP) — Here’s more fallout from the health care law: Until now, customers could walk into an insurance office or go online to buy standard health care coverage any time of year. Not anymore.

Many people who didn’t sign up during the government’s open enrollment period that ended Monday will soon find it difficult or impossible to get insured this year, even if they go directly to a private company and money is no object. For some it’s already too late.

With limited exceptions, insurers are refusing to sell to individuals after the enrollment period for and the state marketplaces. They will lock out the young and healthy as well as the sick or injured. Those who want to switch plans also are affected. The next wide-open chance to enroll comes in November for coverage in 2015.

It’s a little-noted consequence of President Barack Obama’s health care overhaul, which requires nearly all Americans to be insured or pay a fine and requires insurers to accept people with health problems.”


Another Nail In The Obamacare Coffin

Lawsuit Filed Against Nevada Health Exchange

Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage. (Credit: Thinkstock)

Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage. (Credit: Thinkstock)

Las Vegas (CBS LAS VEGAS) – Just days after the deadline to enroll for insurance coverage through Nevada Health Link, the first class-action lawsuit has been filed on behalf of residents who say they signed up and paid their premiums – but were never given coverage.

Law firm Callister & Associates filed the lawsuit on behalf of Larry Basich, who signed up for state health insurance and paid premiums as far back as November, but then was not covered following a Jan. 3 triple bypass procedure that saw his $400,000 in medical expenses passed between the wrong insurance companies, the Las Vegas Review-Journal reports.

The lawsuit filed in U.S. District Court of Nevada on Tuesday alleges gross negligence and failure to do due diligence against the state of Nevada, the Silver State Health Insurance Exchange (which runs Nevada Health Link), and the company that won the contract to build the exchange, Xerox.”

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Rick Santelli: “The Real Enemy Is Not Deflation”

This is above my pay grade but Santelli is a smart guy. He is the one who came up with the idea for the Tea Party.

Santelli blasts, if you’re a saver, you understand now that you weren’t picked as winner.”

In fact, some might even say the ‘saver’ is the enemy of the recovery, but according to the Central Banks, as Rick rages, it is deflation that is the enemy. Bankers and governments love inflation because “if you owe a lot of people a lot of money, there’s nothing better than to pay it back with cheaper money.”

So, at the cost of living standards for the lower/middle class, the government inflates its debt away – so who is the real enemy.”

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“Banker leaps to his death in finance world’s 8th suicide this year”

This is beginning to look like a trend… a worrisome one.

From the New York Post:

Kenneth Bellando apparently jumped to his death from this building on the East Side on March 12.

Kenneth Bellando apparently jumped to his death from this building on the East Side on March 12.

A 28-year old Manhattan investment banker has died in an apparent suicide, police sources said.

Kenneth Bellando, who worked at Levy Capital since January, was found dead on the sidewalk outside his East Side building on March 12 after allegedly jumping from the sixth-story roof, sources said.

Bellando, a former investment bank analyst at JPMorgan, is the son of John Bellando, chief operating officer and chief financial officer at Condé Nast. His brother, John, a top chief investment officer with JPMorgan, works on risk exposure valuations.

Several John Bellando emails were cited during testimony at the Senate Finance Committee’s inquiry into the bank’s losses during the infamous London Whale trade fiasco.”


Spending decreases, spending increases…

We can’t afford to keep operating a rover that is already on Mars.

NASA’s baseline budget for the year beginning Oct. 1 pulls the plug on the 10-year-old Mars rover Opportunity, newly released details of the agency’s fiscal 2015 spending plan show.

The plan, which requires Congressional approval, also anticipates ending the orbiting Mars Odyssey mission on Sept. 30, 2016.

“There are pressures all over the place,” NASA’s planetary science division director Jim Green said during an advisory council committee teleconference call on Wednesday.

NASA currently spends about $13 million a year to support Opportunity.

We can’t afford the US Army.

The Army may need to cut its number of brigade combat teams nearly in half to accommodate the Pentagon’s plans to slice the Army’s size to below 450,000 soldiers after 2017.

Gen. John Campbell, the Army’s vice chief of staff and second highest-ranking member, in an interview with The Hill said the service is already planning to make cuts to its combat brigades, basic Army units of 5,000 soldiers that can be deployed and sustain themselves overseas.

Campbell did not say exactly how few active-duty brigades the Army could afford to have with the smaller Army, which is being cut from 510,000 soldiers currently.

What does the austere budget look like?

President's 2015 Budget Increases Spending 63 Percent Over Next Decade.preview

What is he spending it on? Here is an example… Bailing out insurance companies who would otherwise go belly up due to Obamacare.

ACA risk corridors: Obama’s proposal also includes $5.5 billion to fund a controversial portion of the ACA that creates a temporary pool of money to help insurers that face higher-than-expected costs from enrolling too few young, healthy individuals in coverage through the exchanges (Easley, “Healthwatch,” The Hill, 3/4).


Obama Wants Salaried Workers Paid Overtime

pen and phone

Here come the dreaded pen and phone.

President Barack Obama will direct the Labor Department to strengthen overtime pay protections for millions of workers, a White House official said.

The directive is meant to help salaried workers, such as fast-food shift supervisors or convenience store managers, who may be expected to work more than 40 hours a week without receiving overtime pay. The proposed change is part of Obama’s effort to focus on closing the gap between the wealthy and the poor, which also includes a call to raise the federal minimum wage from $7.25 per hour to $10.10.

The proposal is likely to be met with opposition from some Republicans and members of the business community who say the private sector should have flexibility in setting wages.

Under the new changes Obama is seeking, the Labor Department could raise the pay threshold for workers covered by overtime rules. Currently, salaried workers who make more than $455 per week are exempt from overtime.”

From ABC News


Bloomberg: “The World Is Broke”

“Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says”

A hundred trillion. And that’s just debt. It doesn’t include unfunded liabilities.


Image from Doug Ross

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements.

The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion in the same period, according to data compiled by Bloomberg. The jump in debt as measured by the Basel, Switzerland-based BIS in its quarterly review is almost twice the U.S.’s gross domestic product.

“Given the significant expansion in government spending in recent years, governments (including central, state and local governments) have been the largest debt issuers,” according to Branimir Gruic, an analyst, and Andreas Schrimpf, an economist at the BIS. The organization is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.”

Here is Bloomberg’s story

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Survival Blog: “SHTF Lessons From Venezuela”

Yep. Venezuela. This article was written by a man who is married to a Venzuelan woman who has relatives there. He is fluent in Spanish, and says much of his information comes from the Venezuelan news.

The news media here in the U.S. have completely missed the boat on the Venezuelan situation. Suffice it to say at this point that the conditions over the past 15 years have deteriorated so much that between one and two million out of 30 million citizens have fled the country. Violence has spiraled out of control. Some estimates indicate that during the period of 2003 and 2011(the same period as the Iraq war) the number of murder victims reported in Venezuela rivals the number of people killed in Iraq. In addition to the intolerable violence, socialist government policies collapsed many industrial and agricultural sectors.

So the people of all classes now find themselves in a situation in which electric power is no longer reliable, blackouts are common, and diseases that were eliminated are returning. Inflation can run up to 50% per month, rendering the Bolivar fiat currency nearly worthless. Since the government had forcefully expropriated (through the Venezuelan socialist version of eminent domain) huge tracts of productive domestic livestock and then given it “to the poor” who didn’t know how to farm it, domestic food production crashed.

This is the background that led to the most recent wave of protests, led primarily through a grass roots, social media-driven campaign by students of high school and college age. Their message was simple: “Enough! We need a new government.” Protests by hundreds of students swelled to become thousands. This startled the government, so they unleashed their goons to try to intimidate the students. However, a “strange” thing happened: The more they were attacked, the angrier the people became. After they killed their first victim, they thought the people would cower at home, but that’s not what happened. The people who had previously perceived their own personal safety as tantamount now placed their own lives in a lower priority over the lives of the youths who were fighting for their future. The numbers of protesters swelled into the hundreds of thousands. More were killed. Still they refused to back down. So the government unleashed the military. Citizen journalists with smart phones have documented proof of brutality and even executions by some of the military, and this has been disseminated around the world. For the first time since the height of Chavez’s revolution, nations and organizations that tolerated Chavez’s “excesses” are now beginning to move. Even some of the nauseating progressive politicians here in the U.S., who previously spoke warmly of Chavez, have tweeted photos of themselves supporting the opposition.”

Read more here


Zeke Spills The Beans

Ezekiel J. Emanuel

“Obamacare Architect: ‘Be Prepared to Kiss Your Insurance Company Good-Bye Forever’”

The Affordable Care Act, Obamacare, was not designed to make health care affordable. Nor was it designed to provide health care. It was designed to destroy the health insurance industry. Now one of the chief designers of the act says exactly that:

Ezekiel Emanuel, one of the architects behind Obamacare, is now claiming that “insurance companies as we know them are about to die.” Critics of President Barack Obama’s signature health care law have long alleged that one of the real goals of the law was to put private insurance companies out of business.

“The good news is you won’t have insurance companies to kick around much longer. The system is changing,” Emanuel writes in an op-ed on New Republic. “As a result, insurance companies as they are now will be going away. Indeed, they are already evolving. For the next few years insurance companies will both continue to provide services to employers and, increasingly, compete against each other in the health insurance exchanges.”

Due to Obamacare, “new actors will force insurance companies to evolve or become extinct,” he continues. Instead, new groups called “accountable care organizations” (ACOs) must start competing directly in the health care exchanges for exclusive contracts with employers.”

More at The Blaze


Trib: “Chicago credit rating takes major hit”

Uh Oh. Rahmbo is pushing Chicago toward the number one spot – ahead of Detroit. They are currently the second worst place in the nation to live. Anyone who tells you that Democrat governments know how to make things better is lying to you.


Chicago’s financial standing took a hit Tuesday when a major bond rating agency once again downgraded the city’s credit worthiness because of a huge government worker pension shortfall and the overall amount of money it owes.

Moody’s Investor Service rated the city’s upcoming $388 million bond issuance at Baa1, down from A3, a level set last year after an unusual triple downgrade. The new rating is still investment grade, but puts the city on a lower tier. Moody’s also gave the city a “negative outlook.”

From the Chicago Tribune


“Obamacare Tax Must Be Paid With Tax Return”


Here Come The IRS Bullies. They’re not after just conservatives.

A ‘Shared Responsibility Payment’ is pure socialism.

President Obama’s Internal Revenue Service today quietly released a series of Obamacare “Health Care Tax Tips” warning Americans that they must obtain “qualifying” health insurance – as defined by the federal government – or face a “shared responsibility payment” when filing their tax returns in 2015. The term “shared responsibility payment” refers to the Obamacare individual mandate tax, one of at least seven tax hikes in the healthcare law that directly hit families making less than $250,000 per year.

In “Four Tax Facts about the Health Care Law for Individuals” the agency writes:

Your 2014 tax return will ask if you had insurance coverage or qualified for an exemption. If not, you may owe a shared responsibility payment when you file in 2015.

In “The Individual Shared Responsibility Payment- An Overview” the agency warns Americans they must prove they were covered each and every month of the year:

For any month in 2014 that you or any of your dependents don’t maintain coverage and don’t qualify for an exemption, you will need to make an individual shared responsibility payment with your 2014 tax return filed in 2015.”

Read more here


It’s Not Just New York

Wealthy, educated people are leaving Chicago too – in droves.

Leaving Cook County

If you’re smart or you have a decent job, you aren’t staying in Cook County according to a new study:

As the Great Recession churned job prospects for many, Cook County lost about 13,000 residents with six-figure household incomes to other places, despite the widely hyped revival of downtown housing and jobs.

Between 2007 and 2011, Chicago and its immediate suburbs also ended up with about 10,000 fewer residents with a bachelor’s degree or higher, even after accounting for new arrivals, according to the U.S. Census Bureau’s first attempt to track population shifts by income and education at the county level.”

Hat tip to Second City Cop


Leftists want their lunch and they want it free


I am curious. From where do liberals believe funds for new government mandates come? For example, where do leftists think the funds to pay for an increase in minimum wage will come? Will the funds come from…

    …some kind of spontaneous wealth generation associated with the magic of passing legislation?

    …out of the pockets of business owners thus reducing their incomes improving income equality?

    …the Scrooge McDuck cash-and-gold vaults of wealthy industrialists?

    …the free lunch counter?

    …the stimulus fairy?

The one place they are certain the funds for new government mandates will never, ever originate is their pockets. That would be unacceptable to the left.

Well, here we have a business who wanted them to think about who is really covering the cost of Obamacare.

A local restaurant has added a surcharge to every tab in order to pay for its employees’ healthcare.

“Everyone has the same policy that I do as the owners,” owner and chef Walter Manske said. “And we offer it to everyone; (the) dishwasher, busboy, waiters, across the board.”

Manske says that, ultimately, it is up to the customer whether to take the surcharge out of the gratuity.

Oh, boy. That three percent charge has the moonbats hopping mad. Here are some representative comments.

It’s not MY responsibility to take care of YOUR employees’ healthcare… that’s YOUR job.

So now when you make me a sandwich I owe you health care? No thanks. You are welcome to serve people who accept this arrangement, but it won’t be me. I pay for the sandwich only.

If this is what they want to do they need to put a large sign at the front of the place telling customers well beforehand.

So in addition to paying the bulk of the employee’s salary with tips, we’re now asked to fund their benefits too? Stuff it. I’ll make a sandwich myself.

Eat at home and don’t pay for any increases in your restaurant bill.

Well, what do you know? It turns out that folks don’t want to pay for increased costs associated with government mandates like Obamacare. Who would have guessed?

Of course anyone who isn’t an economic muggle understands that the only difference between this restaurant and every other similarly situated restaurant is that this one is itemizing its government mandated increase in costs. The rest of them are simply increasing menu prices and thus concealing the cost of Obamacare.

As for the last two commentators, someone should tell them the grocery stores where they buy their eat-at-home chow have raised prices to pay for Obamacare too.

There is nothing so jarring to the moonbat mind as the discovery that his lunch isn’t, in fact, free and that he will be required to contribute funds to pay for the programs he so strongly supports. Leftists hate it when the stimulus fairy lets them down and they are forced to pay for what they demand.


Remedial Economics in Argentina

“All right boys and girls, recess is over. Settle down. Settle down, now. Jason, put the Frisbee under your seat or it is mine. Everybody settle down and start acting like 6th grade young men and young ladies.”

“That’s better.”

“Now, we have been studying economics so I am going to ask a few questions. Raise your hand if you know the answer.”

“What is the result of the government printing money at a rate faster than the growth of the economy? Yes, Kelly… That’s right; inflation. Very good.”

“What is the result of inflation? Okay Aiden, tell us. Very good, prices go up. That is correct.”

“Liam, you have a question? Why doesn’t the government just order stores to keep prices the same? Good question. Sometimes governments do that. Does anybody know what the result of governments ordering that prices not be increased while inflation is occuring?”

“Whoa! So many hands at once. Okay, Chloe, tell us what happens. That’s right, Chloe. If, during a period of inflation, prices are capped, the result will be shortages.”

“I think everyone here has a very good understanding of basic, 6th grade economics and will do fine on the test.”

Sadly, the people running Argentina don’t have the same grasp of economics as this class of 12 year olds.

BUENOS AIRES–A day after reporting the highest inflation in over a decade, Argentina’s government fined several retail chains, including France’sCarrefour SA and U.S.-based Wal-Mart Stores Inc., for failing to stock certain price- capped products.

Commerce Secretary Augusto Costa said, in a presentation to reporters, the government fined Carrefour about $ 167,000 and Wal-Mart around $77,500. The companies were allegedly found to have an incomplete stock of certain products that they agreed to sell at capped prices. Changomas, also owned by Wal-Mart, was fined about $41,000. Other local retail firms were also fined.

The fines also come a week after political activists allied with the government plastered this capital city with poster-size photos of retail executives accusing them of fueling inflation by raising prices.

The posters featured portraits of executives from the local units of Wal-Mart, Carrefour and other companies. ” These are the people who steal your salary,” the posters said. “They raised the price of everything to take your money.”

On Friday, Mr. Kicillof defended the government from critics while placing blame for inflation on businesses. “The government doesn’t raise prices,” Mr. Kicillof said. “Some businesses may occasionally be justified in raising prices, but in most cases there can be no justification for this,” he said.

Mr. Kicillof criticized economists who say that high public spending is causing prices to rise. “They say that public spending is very high and that it’s inflationary,” he said. “Gentlemen, why don’t you take your masks off and say where exactly you think the government should cut spending.”

Argentina is a basket case and it is still better run than Venezuela. Both, however, are employing the logic of the Obamanation.


“Remington Arms Rebuffs New York – Will Build New Plant in Alabama”

remington logo

Yes, Virginia, actions have consequences. The Empire State has passed laws designed to be damaging to gun owners and gun makers. What did they think would happen?

Remington says no jobs will leave New York but a couple thousand new ones will be created in Alabama, not New York. Then, when the new plant in operational and the NY politicians ramp up the hassling Remington will have a bolt-hole.

Remington Arms Company, Inc., founded in 1816 in upstate New York, announced today they will build their new factory in Alabama and not the Empire state. Since New York Gov. Andrew Cuomo (D.) signed the SAFE Gun Control Act, multiple gun companies have left the state. And, now Remington will not build its new plant there. reported:

Remington Outdoor Co. plans to open a 500,000-square-foot factory in Alabama that would employ 2,000 people, and the Military Times reported today.

The Military Times story says the expansion would not affect the gun company’s factory or jobs at the plant in Ilion, Remington’s oldest and largest manufacturing site. Remington employs about 1,300 people in the Herkimer County village.”


Read more here



Some things once seen can not be unseen. These men were scared enough to kill themselves.

37-year-old JPMorgan executive may be the latest in a series of bizarre deaths in the financial world in less than a month”

A 37-year-old JPMorgan Chase & Co executive director who died from unknown causes Feb. 3 appears to be the latest in a series of untimely deaths among finance workers and business leaders around the world in the past three weeks.

Ryan Crane, a JPMorgan Chase & Co. employee who in a 14-year career at the New York-based bank rose to executive director of a unit that trades blocks of stocks for clients, died in his Stamford, Connecticut, home, according to the website of Leo P. Gallagher & Son Funeral Home in Greenwich, Connecticut. The cause of death will be determined when a toxicology report is completed in about six weeks, a spokeswoman for the state’s chief medical examiner told Bloomberg.”

Read more at the Financial Post


Conservatives Are Definitely Going After McConnell’s Seat

It’s things like this that the people of Kentucky are tired of:

Mitch McConnell Provides Key Vote to Give Obama a Blank Check”

Mitch McConnell became the key vote today to give Barack Obama blank check to increase the national debt. This debt ceiling increase is not tied to a month, but rather a time period. Consequently, the President can grow the national debt as much as he wants during that time.

Sen. Ted Cruz refused to let the Senate give the President a blank check with a simple majority, instead forcing the Senate to clear the 60 vote hurtle of a filibuster. As both the Washington Times and National Journal report, Mitch McConnell was the key vote. Republicans refused to cough up enough votes to clear the 60 vote margin until McConnell himself voted to raise the debt ceiling. Once he did, other Republicans found their strength to give Barack Obama a blank check.”

Why oppose the ‘Blank check”?


Barack Obama: “Under My Plan The Cost Of Electricity Will Necessarily Skyrocket”

And here we find it will.

Obama’s deputy assistantant secretary for clean coal told Congress this week the new clean coal rules will increase energy costs by 70 to 80 percent.”

Hat tip to Gateway Pundit



It’s all been done before.

There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.

That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929.

The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from underneath the bearish significance of this chart.


More below the fold…


America’s New Command Economy

You will run your business as directed by the Treasury Department.

Fewer workers getting insurance through their employers could mean more individuals on the ObamaCare exchanges seeking subsidized coverage, increasing the cost to taxpayers.

Some lawmakers, though, have claimed that the mere threat of the employer mandate is causing companies to shed full-time workers in the hope of keeping their staff size below 50 and avoiding the requirement.

Administration officials dispute that this is happening on any large scale. Further, Treasury officials said Monday that businesses will be told to “certify” that they are not shedding full-time workers simply to avoid the mandate. Officials said employers will be told to sign a “self-attestation” on their tax forms affirming this, under penalty of perjury.

Well. That is an interesting development. Businesses can no longer adjust headcount based on labor costs. In fact, they must attest under penalty of perjury that they are ignoring their legally binding, fiduciary responsibility to shareholders and continuing to employ workers who are no longer profitably employed.

In other words, for many employers the statutorily binding fiduciary responsibility they have to shareholders is in direct contradiction with the new requirement that employ workers who contribute to financial loss. The government is demanding that shareholder dividends be redistributed to financially unproductive workers.

Furthermore, it is requiring that employers swear an oath that they have not fired anyone for being no longer viable to employ.

Remember the post earlier today with the video of the riot over milk in Venezuela? That riot is a result of contradictory policies in that country. The government wanted milk to be cheap so they set prices below equilibrium and demanded that businesses sell any milk they have at that rate. Since businesses are unable to sell milk below cost, most stopped selling milk altogether. The government was angry that milk was expensive so they “fixed” that by making milk profoundly scarce.

The situation above is virtually identical. Obamacare has increased the cost of labor so businesses have reduced the number of workers the employ. If you increase the price of something, less will be purchased. The government does not want businesses to employ fewer workers so they are prohibiting the reduction of headcount due to Obamacare costs. This is contradictory policy. Businesses can’t pay more for labor than the amount the business will bear. Since businesses can’t pay labor more than it produces, they will stop employing people altogether. The government was angry that employees hours are being reduced so they “fixed” that by putting companies out of business and destroying jobs.

This is a nightmare. Will this horror never end?


Fighting for milk in Venezuela

This is the ridiculously easy to predict result of price controls in the workers’ paradise. Obama: “Wow, they have made great progress improving income equality!”

Reflect that Venezuela is an OPEC nation and one of the most oil rich countries in the world.


Freedom… That’s Just Some People Talkin’

“The Freedom Bestowed Upon Us by ObamaCare”


Found it at Moonbattery