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June 25, 2013

ObamaCare is a Job, Growth Killer


A new Gallup poll of small-business owners indicates that Obamacare is having a dramatic and deleterious effect on Americans’ employment prospects. More than 40 percent of small-business owners say that Obamacare has caused them to freeze hiring, while nearly a fifth say that it has caused them to cut existing workers. According to the poll, 41 percent of small-business owners have frozen hiring, while 19 percent have “reduced the number of employees [they] have in [their] business as a specific result of the Affordable Care Act [Obamacare]” (italics added).

The Gallup poll was commissioned by Littler Mendelson, a firm specializing in employment law. Steven Friedman, an attorney for the firm, said of the results, “We were startled.” He added that these are “some pretty startling answers.”

Just 9 percent of the 603 employers surveyed by Gallup said Obamacare will be good for their business, compared to 48 percent who said it will be bad. Just 5 percent said Obamacare will lower health costs, while 55 percent said it will raise them. Just 13 percent said Obamacare will improve the quality of health care, versus 52 percent who said it will diminish it.

Fully three-eighths (38 percent) of small-business owners said that, because of Obamacare, they “have pulled back on their plans to grow their business.”

In addition to these results, 18 percent of small-business owners say they have already cut their workers’ hours back to part-time levels in anticipation of Obamacare’s effects. Moreover, 24 percent “are weighing whether to drop insurance coverage.”

Somehow, we're guessing this isn't "the change we seek".

Posted by Cassandra at June 25, 2013 06:35 AM

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"We were startled"? That failure to expect the obvious does not startle me. People (including me) tend to at least not admit if they do not openly deny that which they don't like. What intrigues me is that no more than the discovered percentages were making the decisions stated. What conversations among lemmings stops or even slows, errr, 'progress' toward disaster?

Posted by: Roy at June 25, 2013 09:59 AM

And yet somehow we can't elect Congressmen who will repeal it.

Maybe in 2014.

Posted by: Texan99 at June 25, 2013 10:06 AM

What intrigues me is that no more than the discovered percentages were making the decisions stated. What conversations among lemmings stops or even slows, errr, 'progress' toward disaster?

It may be ignorance of the actual provisions in ObamaCare and uncertainty about its effects. I had a conversation with a small business owner recently who was totally unaware of the coming tax on Cadillac health care plans. I'm not really up on all the nuances of ObamaCare, but that one made a huge impression on me and I was mildly shocked that someone who was already thinking about the effects of HCR would not be aware of that provision.

Posted by: Cassandra at June 25, 2013 10:36 AM

"We were startled"?
> this says a *lot* about Gallup, the liberal bis of the outfit, and their abysmal ignorance of economics and business.

Cass, I agree that these numbers reflect both ignorance of the coming (awful) details; hell there's a "lot* of crap buried in the law, and much more already imposed by HHS (Sebelius), and a ton more coming from both HHS, IRS and new 'panels' established by the law.

> it's gonna get ugly in 2014 as folks (in large numbers) begin to figure out just how bad Obummercare really is.

Best Regards,

Posted by: CAPT Mike at June 25, 2013 07:53 PM

I ran this poll by a friend of mine who is a huge Obamacare supporter. He responds with three points.

1) From his perspective as a small business owner and entrepreneur (who also happens to be a progressive Obama supporter), the marginal costs imposed by Obamacare are low. Businesses that won't front these costs, given the massive improvement he believes will result in the lives of their workers, are in his opinion immoral (or just stupid, insofar as they aren't hiring workers who could help expand their business to avoid marginal costs).

2) He thinks unemployment rates are at very tolerable levels, because they are below European levels. If we had a proper social welfare state, we'd have higher unemployment -- but that's a cost he's happy to accept.

3) Unemployment is really a function of American workers being badly educated. There's a demand for skilled workers that requires increased immigration of same, because our own native workers aren't fit for the kind of jobs that employers today need done.

I would have to summarize his response as: 'It's a small price to pay; if it increases unemployment, that's fine as long as we get a stronger social welfare state; and anyway Americans are unemployed because they deserve to be given their levels of skill and education.'

But perhaps that's unfair on the last point. I think he'd like to see better public education, as well as free skills/jobs training at public expense also.

Posted by: Grim at June 25, 2013 08:36 PM

Hi Grim,
I am appalled at the economic ignorance of the kind of small businessman you describe.

That kind of genuinely stupid ignorant liberal asshat may very well deliver us into a European style social welfare state, which inevitably depresses economic growth, which historically in Europe has reliably periodically produced awful social uprisings and/or rebellions that have caused great loss of life and liberty . . . and rarely resulted in greater economic growth.

Best Regards,

Posted by: CAPT Mike at June 26, 2013 10:44 PM

Will the delayed start date of OBAMACARE affect the US unemployment rate? The U.S. healthcare reform (“Obama Care” or the “Patient Protection and Affordable Care Act”) is intended to pressure large and small employers through force and taxation. Enacted in July 2010, the end result will show North American companies deciding to send customer support, sales, lead generation and appointment setting jobs offshore to stay competitive or risk going out of business. Many business owners will hire a dedicated bilingual employee nearshore who is 100% qualified for their project. Financially speaking, ESL call center employees in Costa Rica are as effective as transitional in-house staff for half of the cost. This proven strategy will give small to medium sized companies the option to scale up their BPO staff without getting caught in the Obamacare challenge in 2015.


Posted by: Costa Rica's Call Center at July 11, 2013 05:55 PM