In another awesome lesson of why social engineering assholes should be considered dangerous idiots and not the doo-gooders they pretend to be, we learn that can not bend the laws of economics, regardless of what the collectivist scumbags pretend.
It’s already happening across the country at fast-food restaurants, as employers try to avoid being punished by the Affordable Care Act. In some cases we’ve heard about, a local McDonalds has hired employees to operate the cash register or flip burgers for 20 hours a week and then the workers head to the nearby Burger KingBKW +2.39% or Wendy’s to log another 20 hours. Other employees take the opposite shifts.
Welcome to the strange new world of small-business hiring under ObamaCare. The law requires firms with 50 or more “full-time equivalent workers” to offer health plans to employees who work more than 30 hours a week. (The law says “equivalent” because two 15 hour a week workers equal one full-time worker.) Employers that pass the 50-employee threshold and don’t offer insurance face a $2,000 penalty for each uncovered worker beyond 30 employees. So by hiring the 50th worker, the firm pays a penalty on the previous 20 as well.
I say these employees are the lucky ones. They found a way to score 40 hours of work in a depressed economy – one that is depressed because the social engineers have spent the last 5 years fucking us over instead of doing anything that would actually make the economy get better – while still avoiding the pain of something they where told was going to be free, but is far from. There will be millions that are not going to be that lucky. They will end with too few hours, or even worse, no jobs at all. If you are asking yourself why this is happening, check out the following revelation:
These employment cliffs are especially perverse economic incentives. Thousands of employers will face a $40,000 penalty if they dare expand and hire a 50th worker. The law is effectively a $2,000 tax on each additional hire after that, so to move to 60 workers costs $60,000.
A 2011 Hudson Institute study estimates that this insurance mandate will cost the franchise industry $6.4 billion and put 3.2 million jobs “at risk.” The insurance mandate is so onerous for small firms that Stephen Caldeira, president of the International Franchise Association, predicts that “Many stores will have to cut worker hours out of necessity. It could be the difference between staying in business or going out of business.” The franchise association says the average fast-food restaurant has profits of only about $50,000 to $100,000 and a margin of about 3.5%.
I guess the lesson here is that this Obamacare shit is neither free nor a good deal unless you are part & parcel of the cadre that wants things to go bad so you can then justify government taking over all the healthcare money and decision making process. The end goal of the collectivist socio-engineers has always been state control of money and people, and one of the best ways is to control healthcare money, access, and decisions through a government run single payer system. But they have known that such a system would only become palatable to a public that finds their single payer system anathema to freedom and independence, if they manage to make the existing system so expensive and dysfunctional that even a nasty single payer system run by government looks better. That’s what Obamacare’s main purpose is: to destroy the economy and the existing healthcare system in the US. Don’t doubt it. Stories like this are not unexpected consequences or failure of planning, but the exact intended result. And we better get used to a stagnated economy and no foreseeable job growth of any kind outside bigger government. Small business employers, the ones that provide the bulk of the private sector employment, now have the biggest incentive ever put on any law books to not grow past 49 employees. From the article:
Because other federal employment regulations also kick in when a firm crosses the 50 worker threshold, employers are starting to cap payrolls at 49 full-time workers. These firms have come to be known as “49ers.” Businesses that hire young and lower-skilled workers are also starting to put a ceiling on the work week of below 30 hours. These firms are the new “29ers.” Part-time workers don’t have to be offered insurance under ObamaCare.
The mandate to offer health insurance doesn’t take effect until 2014, but the “measurement period” used by the feds to determine a firm’s average number of full-time employees started last month. So the cutbacks and employment dodges are underway.
Do I again have to point out that there is no such thing as a free lunch? On a website that carries of all things the most ludicrous and insane heading of “Ensuring the Affordable Care Act Serves the American People“, they have now buried the information, because the list of exempt friends, cohorts, and other donkey interests like unions that would be crippled by this shit law has grown so long. It is not a coincidence that there are so many donkey special interest groups, or for that matter politicians, that are exempt from Obamacare. They know that Obamacare’s real goal is to destroy healthcare for those opposed to their plans for a single payer system, and they are protecting their special interests and themselves. I think we should pay attention to suggestions from people like Glenn H. Reynolds about shafting the left with their own shit, like this one.
In the mean time, get used to the poor getting a lot poorer, those connected to the democrats to get richer, the middle class being destroyed completely, and the misery being spread wide. That’s what collectivism is all about, but after a century of proof we still have the idiots driven by their envy of what others have and their own greed to take away from those that have more than them that keep telling us they can make it work, or it works when it is implemented with less of the obvious violence and evil that are the hallmarks of communism and fascism. Then reality sets in and we get California and Greece, or in this case, the employment roulette, sooner than later.
The timing of all this couldn’t be worse. Involuntary part-time U.S. employment is already near a record high. The latest Department of Labor employment survey counts roughly eight million Americans who want a full-time job but are stuck in a part-time holding pattern. That number is down only 520,000 since January 2010 and it is 309,000 higher than last March. (See the nearby chart.) And now comes ObamaCare to increase the incentive for employers to hire only part-time workers.
Democrats who thought they were doing workers a favor by mandating health coverage can’t seem to understand that it doesn’t help workers to give them health care if they can’t get a full-time job that pays the rest of their bills.
At least I have the consolation that the people hit the hardest by the left’s socio-engineering bullshit is always going to be the same low knowledge voters that support this wealth redistribution and not-free, free shit the left uses to buy votes with. Pity that the rest of us have to come along for the destructive ride, because the LSM now acting like a branch of the DNC won’t point out that they are fucking us over.