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November 16, 2012


Replies: 358

The Real Impact of Obamacare - Higher Costs for Customer - Lower Pay for Workers

maddmatt Featured By Owner Nov 16, 2012

In yet another example of the reality of Obama's reelection, businesses have no hope relief of the stifling conditions of Obamacare. What is passed as a noble effort to provide health services out of thin air, is resulting in businesses that make little profits to reduce employee hours costing low-paid workers vital hundreds per paycheck, and raising costs on goods consumed by mainly middle and low class customers.

This is a very real example of how inflating and artificially promoting something with very real costs as "free healthcare for all" impacts small businesses like this and middle and low income consumers. If you are a low-wage earner already, your pay is negatively impacted to stay below required hours thresholds that Obamacare requires. So you are now making less and still getting no benefit. To double-hit you, the goods you can afford from these small business now cost more, further depleting the value of the little money you make.

'Obviously, I'd love to cover all our employees under that insurance,' said Metz.
'But to pay $5,000 per employee would cost us $175,000 per restaurant and unfortunately, most of our restaurants don't make $175,000 a year. I can't afford it.'

Profitable restaurants on average make around $250 per seat of actual profit. Simple math for a successful restaurant is 200 x $250 = $50,000. If you only have 10 employees, the added cost of Obamacare would eat up all of your profit. Any more employees in that restaurant (cooks, servers, hostess, bartenders, management, busboys) and you are taking a loss each and every year.

The usual suspects will bash these restaurant owners as greedy fatcats, but the reality is that most businesses like this simply can't afford the costs to come out of what little they actually make. So the reality is to cut hours/pay and/or increase the cost to the customer effectively creating another tax through inflation on the public.

Are businesses doing this just to thumb their noses at Obama? No. They are doing it for survival. And whether you think business owners are greedy or not, the reality is that this election made sure that many businesses like this will need to do exactly what this one has been forced to do in order to survive. You can't promote business growth while you are actively bashing those who need the environment to grow.

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Devious Comments

gussiejives Featured By Owner Dec 2, 2012  Hobbyist Digital Artist
Then let's go single payer or public option... oh darn.
Why-did-Kenji-die Featured By Owner Dec 1, 2012
Yep. And 100 mill people are already on welfare
meanus Featured By Owner Nov 27, 2012
anything the government gets involved in will be totally and completely fucked up to the max...witness our bizarro health care system. Lyndon Johnson and his pals started dumping money in it and now its the most fucked up, hurtful thing in the universe
Agburanar Featured By Owner Nov 26, 2012
Are you implying American firms need an excuse to cut their serfs' pay?

Don't be absurd!
meanus Featured By Owner Nov 23, 2012
Obamacare is just another socialist disaster the democrats are inflicting on our sad nation. Stick a fork in us, we are done...third world status withing twenty years
mgonzales041090 Featured By Owner Nov 24, 2012  Student Traditional Artist
Granted, it's only socialist when the Democrats implement. Never mind that it's a Republican idea, head-to-toe.
meanus Featured By Owner Nov 24, 2012
yep, they are all socialist but at least the repubs believe in jobs
mgonzales041090 Featured By Owner Nov 24, 2012  Student Traditional Artist
You don't have a job, do you?

I do... :)
meanus Featured By Owner Nov 25, 2012
yes, I have a job
Kiwi-Punch Featured By Owner Nov 26, 2012  Student Digital Artist
Prove it.
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