It should not be a surprise that businessmen are primarily interested in the profitability of their businesses.
The Huffington Post | By Harry Bradford Posted: 11/09/2012 10:26 am EST Updated: 11/09/2012 12:08 pm EST
With President Obama sticking around for another four years, Murray Energy Corp. CEO Robert Murray has entered “survival mode,” announcing Wednesday that more than 160 employees at various subsidiaries will be laid off, in part due to Obama-related regulations and taxes, WTOV reports.
Murray outlined his views in a letter to employees, which included theories including that a new carbon tax will subsidize Obama supporters and lead to the “total destruction of the coal industry,“ perhaps by 2030.
“Lord, please forgive me and anyone with me in Murray Energy Corp. for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build,” Murray reported read aloud during a group prayer with staff members Wednesday, according to The Washington Post. “We ask for your guidance in this drastic time with the drastic decisions that will be made to have any hope of our survival as an American business enterprise.”
More at the link.
Also from the PuffHo:
The Huffington Post | By Harry Bradford Posted: 11/09/2012 5:59 pm EST Updated: 11/09/2012 5:59 pm EST
In the wake of President Obama’s reelection, one CEO is doubling down on his criticisms of Obamacare.
Papa John’s CEO John Schnatter said he plans on passing the costs of health care reform to his business onto his workers. Schnatter said he will likely reduce workers’ hours, as a result of President Obama’s reelection, the Naples News reports. Schnatter made headlines over the summer when he told shareholders that the cost of a Papa John’s pizza will increase by between 11 and 14 cents due to Obamacare.
“I got in a bunch of trouble for this,” he said, referring to the comments he made in August, according to Naples News. “That’s what you do, is you pass on costs. Unfortunately, I don’t think people know what they’re going to pay for this.”
Schnatter went on to say he’s neither in support of, nor against the Affordable Care Act, even admitting that “the good news is 100 percent of the population is going to have health insurance.” But he’s not the only one in the chain restaurant industry to admit that workers hours may be reduced, since Obamacare mandates that only employees that work more than 30 hours per week are covered under their employers health insurance plan. For example, Darden restaurants, the parent company of Olive Garden and Red Lobster, has already experimented with reducing workers hours in anticipation of the legislation.
Others have responded to the added costs of Obamacare more harshly, including Applebee’s which has said it won’t hire new workers because of the law. Just this week, a Georgia business owner also claimed he cut employees due to Obamacare and in fact had specifically laid off those who he thought had voted for President Obama.
Your Editor is personally aware of a situation in which an individual Target store is restricting the hours of a partially disabled part-time worker, keeping him under 20 hours per week, specifically so that he will not be eligible for the company’s health insurance plan. I am unaware whether this reflects corporate policy, or is an action by the individual store manager.
Mr Schnatter said, “I don’t think people know what they’re going to pay for this.” Well, how could they? As Forbes has noted, the Congressional Budget Office’s estimates of the cost of the health care reform act keep changing, and just as any sensible conservative would have predicted, they keep changing in the direction of costing more money and increasing the deficit.
In 2010, the CBO estimated that Obamacare’s spending on new programs would amount to $929 billion from 2013-2019, and a ten-year cost of $944 billion. Those figures increased to $956 billion and $1,442 billion respectively in 2011, and $1,053 billion and $1,856 billion in 2012.1
In effect, the CBO’s estimates of the ten-year costs of the laughably-named Patient Protection and Affordable Care Act doubled in just two years, and the law hasn’t even come into full effect yet. If the Congressional Budget Office, with all of the tools at its disposal, cannot reliably guesstimate the government costs of ObaminableCare — and a doubling of the ten-year cost estimate means that the CBO has already missed by a factor of 100% — how can we reasonably expect private corporations, of all different sizes, to be able to calculate how much the PP&ACA will cost them?
From William Teach:
November 10, 2012 – 10:54 am
Let’s be clear: not every layoff, bankruptcy, and closing can be laid at the feet of Obama, his policies, and those of Democrats. These happen even in times when the economy doesn’t suck. But, you can polish a turd, it’s still a turd, and this economy is a turd (via Daily Jobs Cuts)
- Update: DuPont Co in Richmond VA – 64
- TMX Group Ltd. – 100
- Penn Refrigeration – 40
- Wilkes-Barre PA – Layoffs Possible
- American Coal – 54
- New Energy Corp. Indiana – Idles 40
- Mills Manufacturing NC – 68
- TECO Coal Corporation – 90
Let’s look at that link for American Coal
A local coal mine is cutting jobs and blaming it on politics. American Coal in Galatia laid off 54 miners on Wednesday, saying President Barack Obama’s re-election is bad news for the coal industry.
Back during the Bush years, when the economy was roaring, unemployment was below 6%, and GDP was great, Liberals focused on the stock market and every single tiny change. Why can’t we focus on the miserable conditions in the jobs market? We can look at things like the unemployment rate and job creation, but those are general over-views which fail to focus on actual pain caused by Obama and his fecklessness, irresponsibility, demonization, and incompetence.
- Update: Bakers Footwear Group Begins Liquidating 150 Stores Across the Country
- Vyn-All Pool Products Plant in McKenzie Tenn.
- Christensen’s Furniture
- Mountain West Research closed its call center in Idaho Falls
- Update: Target Store in Hickory Hollow Area Tenn.
- Mike-sell’s Snack Food Co. is closing three Ohio distribution facilities – < 40 Jobs Lost
There are also small business closings. They may only be small numbers, but, the employees are real people.
And Karen had another list of layoffs and closings announced just since the election ended:
November 9, 2012
Elections have consequences. The consequences of this election are already upon us. No doubt many businesses were holding out hope for repeal of Obamacare. Well, that’s not going to happen and now they’re laying off. Here’s a partial list of businesses shutting down that have been announced since the election on Tuesday.
- Caterpillar Inc. will close its plant in Owatonna Minn.
- Mount Pleasant’s Albrecht Sentry Foods
- The Target store at Manassas Mall Va.
- Millennium Academy in Wake Forest NC
- Target Closing Kissimmee FL Location
- The Andover Gift Shop in Andover MA
- Grand Union Family Markets Closing Storrs Location CT
- Movie Scene Milford Location NH
- Update: TE Connectivity Closing Greensboro Plant – 620 Layoffs Expected
- Gomer’s Fried Chicken in South Kansas City
- Kmart in Homer Glen
- Fresh Market on Pine Street in Burlington
- AGC Glass North America to permanently close its Blue Ridge Plant in Kingsport Tenn.
- The Target store at Platte and Academy in Colorado Springs
- Meanders Kitchen losing its West Seattle location at 6032 California Ave
- Bost Harley-Davidson at 46th Avenue North and Delaware Ave. in West Nashville TN
- Townsend Booksellers in Oakland
- The Kmart store in Parkway Plaza off University Drive in Durham NC – 79 Jobs Lost
Oh, and don’t forget the war on coal. A Utah coal company just announced that 102 miners will lose their jobs. Thanks, Obama. Thanks voters who gave Obama a second term. Thanks non-voters who are so proud that they “stuck to their principles.” I’m sure all of these people losing their jobs are very grateful.
Well, maybe they will be, since they can count on President Obama to want to maintain and expand welfare and food stamps and unemployment benefits, things that they certainly will need now!
Let’s be fair here: not every business closing and not every layoff can be attributed to President Obama and his Administration. Your Editor is certain that almost all of the closings and layoffs announced were for businesses which were not making money, or at least not making enough money, in the first place. But business don’t somehow think for themselves, nor are they all run by dispassionate computer programs which have a demarcated close-the-doors point. Rather, businesses are run by people, by businessmen who apply their experience, their education, their intuition and, yes, their feelings, to their business decisions. In the two PuffHo stories cited at the beginning of this article, we had businesses which were taking actions specifically due to the re-election of President Obama, and their CEOs’ judgement that his re-election would worsen business conditions for them. How many of the other businessmen taking decisions for layoffs or closings considered the election results as a deal-breaker or tipping point, we do not know.
But we do know that a lot of businessmen and investors concluded that the President’s re-election was a bad thing for business and investment. And these are the kinds of people who take decisions on start-ups and expansions, and closings and contractions. There will be a re-election drag on this economy, due to the perceptions of businessmen.