Friday, November 16, 2012

So who ultimately pays for Obamacare?

You will start to see a trend pretty soon that will sweep this nation and all retailers and service providers.

I was reading this article about how a restaurant is going to start charging a surcharge for Obama care.

This brings me back to before all of this and to say that no mater what people want in life nothing the government enforces as a benefit for other will come in with out a cost to everyone.

If you had read my earlier posts you would have read that I think that there should never be an increase in minimum wage. There is a reason why this should not happen and this is a prime example why.

Imagine you are the manager at a fast food establishment and you where told that you needed to raise the minimum wage rates to all your employees and you have 30 employees on the books at this moment and your total profits as it stands barely breaks even after all the costs and expenses of doing business and taxes. So know your forced to make a decision. What do you do?

I'll tell you that you have 2 options. One is to fire people to make up the difference in the additional expense. This would means customers will be served slower and things might be served cold and the over all restaurant may not be as clean as could be if you had enough people to keep the place full stuffed. The second option would be to raise to rates on the menu. This might cause your regular customers to stop going to your place for a quick meal and chose your competitors.

As with this Health care thing you will see the "extra expense" will do exactly as I stated above or both. they might just opt to take the option to no have health care at all and just pay the fine because it would mean keeping people employed and the doors to the business open.

What do you think?

UPDATE: http://washingtonexaminer.com/sorry-businesses-cannot-avoid-obamacare-by-switching-to-part-time-staff/article/2533781

I see report of costs for the cheapest Obama health care plan "Bronze" being 122% higher in cost then the cheapest health care plan available today.

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