Not long ago, I was talking to a fellow business owner about the disastrous effects of ObamaCare when it goes live. He is somewhat left-leaning, even though he owns his own business, and he tried to defend ObamaCare and he asked me; exactly what in ObamaCare is going to cause small business owners any challenges?
I told him that if he had a company of over 50 employees it would cost him easily over $4500 per year per employee. He said he didn't have 50 employees, he only has 10. Then he told me that unless I had read the entire Affordable Health Care Act then I shouldn't be making any statements. Still, I threw this back at him and I said unless he had read it he should not defend such a worthless piece of legislation. Still, he wanted to know what I think will happen once a goes into effect, and therefore I've made a small list for you.
Less Expansion
Forcing Jobs Offshore
Closing of Companies
Increase in Health Care Fines
Higher Prices - Wholesale Inflation
Eventual Collapse of the Government Run Obama Care Program
There will obviously be less expansion of businesses because no business owner will want to get more than 50 employees. If business owners fail to grow, they won't buy any new equipment, which will also hurt the manufacturing sector. In that case it will force jobs offshore because that's where people can manufacture cheaper. Once those manufacturing jobs are taken offshore, companies will close.
Those businesses which cannot afford to pay more for healthcare insurance and still stay in business might opt to pay the penalty and fine instead. This means that more people will get on board with the government run health care system, which will run inefficiently because government doesn't do anything very well. This will cause a balloon in the ObamaCare program, which will eventually collapse and stick the taxpayer with the bill.
This will cause a collapse in our healthcare system, higher taxation, less than adequate healthcare, and therefore the whole activity is a waste of time and hurtful to businesses. Worst of all, it will increase costs of businesses which in turn will cause wholesale inflation and that means every consumer will not only be paying higher taxes, but they will also be paying more for health care and all the products they buy.
Indeed, this is just what I've read from all the summaries of those who have read this legislation and written economic essays on the topic. Still, from what I know from the free-market, I've added my points of contention here and I hope you will please consider it all.
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank.
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