By Tom Quiner
Barack Obama and the Democrats own the economy. And they own the coming economic carnage of Obamacare.
The American people chose, and we chose the Greece model championed by Democrats. Greece economics is characterized by unsustainable public debt and entitlement programs.
Let me give you but one sample of the coming economic hit from Obamacare.
Employers of workers earning $15 per hour or less per year are going to be required to provide very expensive health insurance for these employees.
The cost of this insurance is $15,000 for a family of four.
If the employer doesn’t provide the insurance, they will pay a $2000 fine.
If you are the employer, what would you do? Here are your options:
1. Pay the fine. It’s cheaper, leaving the employee on the hook to get his/her own insurance.
2. Pay the insurance and reduce the employee’s salary accordingly. If the employee earns $30,000 per year, his salary would be reduced to $15,000 with the remaining $15,000 going to the mandated cadillac insurance plan.
3. Cut the hours back for employees to less than 30 hours per week, making them part timers whom employers do not have to insure.
It’s a safe bet your employee doesn’t want option #2, which means you’re going to pursue #1 or #3. That’s what we’re seeing in the food industry, a reduction in hours for employees as a means of survival for these businesses.
John Schnatter, CEO of Papa John’s Pizza, said Obamacare would cost his organization $5 to $8 million a year, so they’re going to be forced to cut back hours to save jobs and save the company. Says Schnatter:
“It’s common sense. That’s what I call lose-lose.”
What a perfect way to characterize Obamacare: a lose-lose proposition.
So what happens to the employee who cannot possibly afford the expensive coverage mandated by Obamacare? The government will pick up the tab by providing them with “free” insurance via Medicaid or state-run insurance exchanges.
Remember the promise that Obamacare was going to cut the deficit? Guess again.
Obamacare has created incentives for broad swaths of the business community to cut back hours on their employees at the same time they stick taxpayers with the cost for the insurance.
You can call it lose-lose or Greece.
That’s what the voters chose out of a misguided notion that they can get something for nothing.
Welcome to Obama’s second term.