The Law Of Unintended Consequences… Or Intended?

Here is an interesting post from the owner of a small business that employs 400 people:

Here is what I am doing for the rest of the year — working with every manager in my company so that as of January 1, 2013, none of our employees are working more than 28 hours a week. I think most readers know the reason — we have got to get our company under 50 full time employees or else I am facing a bill from Obamacare in 2014 that will be several times larger than my annual profit. I love my workers. They make me a success. But most of my competitors are small businesses that are exempt from the Obamacare hammer. To compete, I must make sure my company is exempt as well. This means that our 400+ full time employees will have to be less than 50 in 2013, so that when the Feds look at me at the start of 2014, I am exempt. We will have more employees working fewer hours, with more training costs, but the Obamacare bill looks like about $800,000 a year for us, at least, and I am pretty sure the cost of more training will be less than that.”

This writer is planning to do what most small business owners are having to do. He even goes as far as predicting that the new law will change forever the way Americans look at their work place. He envisions most workers, “…to work two different jobs for 20-25 hours each with two different companies.”.

What will be the result of that?

This is not a prescription for creating long-term employment that leads to ceers that one pursues for a lifetime. Nor is it an incentive for a business owner who employs fewer than 50 people to expand.

Where will people go who need full-time employment and long-term job stability? It will be interesting to learn just which careers will be exempt from this rule. My guess? Government hiring will either receive a waiver or the additional expenses will be paid for via increased taxes and fees.

Another guess would be that companies who hire unionized workers will not be hit wit these expenses. That would do more than anything else to strengthen America’s union membership. They have been favored by the Obama administration.

Can you think of any others?

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4 Responses to The Law Of Unintended Consequences… Or Intended?

  1. messup says:

    A bit long, but what the heck:
    Obama’s re-election:
    1807 and 1929…same situation, same causes…government excessive spending.
    1929 to 1939=Great Depression. Hoover, then FDR did:
    1)Higher wages (Obama likewise)
    2)Public works(Obama stimulus)
    3)2 to 3 million unemployed
    4)Coordination b/t business and government. (Obama’s Business Czar)

    Today, there are:
    1)4.3 million on welfare
    2)47 million on food stamps (SNAP)
    3)5.6 million unemployed.
    4) 1 in 5 children, are “poor”
    5)21 million american children received lo-cost help
    6) 1/2 of single moms kids live in poverty
    7)US has highest rate of poverty in developed world.
    8) (18 Nov. 2012) The 7 large metropolitan areas with the highest poverty rates in 2011 are all in the 4 states that border Mexico. The Hispanic and black poverty rates in the U.S. in 2011 were 28.0 and 25.7%, respectively, compared to 11.0% for non-Hispanic whites. For 2009-2011, the highest poverty rates were California, D.C., and Arizona at 23.5, 23.2 and 19.8%, respectively. The lowest were Iowa (8.4) and North Dakota (9.0). California also had the 3rd highest unemployment rate (10.2%) in Sept. (Sources: Bureau of Labor Statistics, Census Bureau 2011 American Community Survey, Nov. 2012 Census Bureau Current Population Reports)
    9) (18 Nov. 2012) Some Republicans are considering amnesty for illegal aliens to buy Hispanic votes. Hispanics will thank them and keep voting for Democrats. 28.0% of Hispanics are below the poverty level. There are 83 federal programs that provide benefits exclusively for low-income residents. The fed spent $746 billion on these programs in 2011 and states added another $283 billion ($1.028 trillion total). Hispanics will vote for Republicans when they promise to outspend Democrats on these programs. (Source: Nov. 2012 Census Bureau)
    10) (14 Nov. 2012) Medicaid enrollment went from 60.1 million in fiscal year 2005 to a record 70.4 million in 2011. In August 2012, 47.1 million received food stamps in 22.7 million households … both are records. Take from those who earn it and give to those who did not. (Sources: Centers for Medicare and Medicaid Services, 9 Nov. 2012 CNSNews, 10 Nov. Zero Hedge)
    11)(14 Nov. 2012) There are 83 federal programs that provide benefits to low-income residents. In fiscal year 2011, federal spending for these programs totaled $746 billion, excluding benefits for veterans. The largest spending was for Medicaid ($296 billion), food stamps ($75 billion), earned income tax credit ($56 billion), college Pell grants ($41 billion), child tax credit ($23 billion), Medicare prescriptions ($22 billion), and section-8 housing ($19 billion). In addition, states spent $283 billion on these federal programs, resulting in a total of $1.028 trillion. (Source: 16 Oct. 2012 Congressional Research Service (crs.gov))
    12) (5 Nov. 2012) 115,000 illegal aliens cost the state (Michigan) and local governments $928,677,000 in one year …K-12 education $314.1 million … welfare $142.6 million … justice $66 million … limited English proficiency education $63.2 million … Medicaid $62.4 million … low-income families’ children health $25.2 million. (Source: Feb. 2011Federation for American Immigration Reform)
    13) (11 Oct. 2012) As the government expands, a larger percentage of residents become dependent on entitlement programs. In 2010, 70.5% of federal spending went to 47 government dependence programs, up from 48.5% in 1990 and 28.3% in 1962. Government dependence programs are driving annual budget deficits and the national debt. Politicians know that to get elected they have to support the continuance of these entitlements. (Source: 23 Sept. 2012 Heritage Foundation)
    14) (10 Oct. 2012) In March, the unemployment rate was 16.4% for workers under the age of 25. 53% of adults 18-24 live with their parents … 29% of adults 25-34. (Sources: Economic Policy Institute, 19 Sept. 2012 IJ Review)
    15) (4 Oct. 2012) 70% of all federal spending goes to aid individuals for welfare items such as housing, food, medical, income and student aid … not including Medicare or Social Security. In 2 years, the number receiving welfare increased from 97 million to 107 million in the 2nd quarter of 2011. In the last 3 months, more people applied for Social Security disability payments than found jobs in the private sector. Almost half in U.S. die with less than $10,000 in assets. (Sources: U.S. Senate Budget Committee, 14 Aug. 2012 National Center for Policy Analysis)

    Credit card use (or some form of debt):
    2011= $48 billion in new debt
    424% more than in 2010
    577% more than in 2009
    You judge the future!!!Pray. Amen.

  2. xenicalman says:

    messup:
    That was outstanding.

    Too bad you will never see this “summary of shit” in print. What sickens me is that not one of these entitlements are to be found anywhere in the Constitution……..contrary to popular belief.

  3. EastBayLarry says:

    I’ve already been on the two-part-time-jobs routine. Makes things like vacations a memory from the distant past.

  4. Uke says:

    Ironic, considering that these guys (leftists) are the ones supposedly all about FDR’s “Second Bill of Rights.” Specifically as it relates to the part about mandatory leisure time and vacations.

    Vacations indeed go the way of the dodo in this new, two-part-time-jobs world.

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