Economics 101: Schadenfreude!

Drew the Infidel wrote:

They told me bad things would happen if I voted for Romney. Boy, were they right!

Drew was commenting on a post by Phineas:

Obama donor lays off employees because of ObamaCare

Posted by: Phineas on November 14, 2012 at 3:55 pm

Nancy Pelosi said we’d have to pass the health-care reform bill in order to find out what’s in it.

Surprise!

Stryker Corporation has announced that it will close its facility in Orchard Park, New York, eliminating 96 jobs next month. It will also counter the medical device tax in Obamacare by eliminating 5% of their global workforce, an estimated 1,170 positions.

Jon Stryker is heir to the Stryker Corporation, one of the largest medical device and equipment manufacturers in the world. Stryker’s grandfather was the surgeon who invented the mobile hospital bed. The company now sells $8.3 billion worth of hospital beds, artificial joints, medical cameras, and medical software every year.

Stryker, a member of the Forbes 400 list, was one of the top five donors to the Obama campaign. Having donated $2 million to the Priorities USA Action super PAC, Stryker also gave $66,000 in contributions to Obama and the Democrat Party.

(…)

Stryker’s corporation is part of an industry that has been a big loser at the hands of Obamacare. Having refused to get on board with the White House and the Senate Finance Committee when the law was being crafted in 2009, the medical device industry was punished with an excise tax of 2.3% of their revenues, regardless of whether they make a profit.

My sympathies to anyone losing their job at Stryker, or elsewhere. Except to those who voted for Obama. All I can say to them is this is what you voted for.

Elections have consequences.

The internet has been flooded with stories about companies announcing layoffs and closures and hours reductions ever since the election, something we noted here.

Schadenfreude is supposed to be a guilty, unadmitted-to pleasure, but it seems that there is a form of karmic justice when a major donor to President Obama’s campaign winds up being one of the corporate leaders cutting jobs due to Obaminablecare. “We told you so” is more of a Pyrrhic pleasure, but I suppose that’s better than no pleasure at all.

And from Reuters:

(Reuters) – The budget deficit rose in October, the first month of fiscal year 2013, as looming negotiations over expiring tax cuts and imminent spending reductions dominated the post-election political landscape.

The Treasury said on Tuesday the October deficit was $120 billion, larger than economist forecasts for a $114 billion gap and up from $98 billion in October of 2011.

Growth in expenditures outpaced rising receipts, deepening the deficit. Outlays grew to $304 billion from around $262 billion in the same month last year while receipts rose to $184 billion from $163 billion.

Think about that: tax receipts for October rose by $21 billion, a very substantial 12.88%. That should be great news! But spending rose by 16.03%.

Conservatives remain baffled that President Obama could have been re-elected; how any president with as lousy a record as he had could have carried a single state is hard to believe. One explanation is that Republicans counted on the voters to be smart, while Democrats counted on them to be stupid, and the Democrats turned out to be right.

But, whatever the explanation, the President was re-elected, and we are stuck with him for another four long years. Now we see that a corporation in New York, which was carried heavily by President Obama, is seeing people being laid off.

Schadenfreude indeed. At this point, we can’t somehow un-elect the President, but, let’s face it: we told you so!

5 Comments

  1. “Conservatives remain baffled that President Obama could have been re-elected;”

    Baffled? Baffled you say? Incredulous is more the word.

    Yesterday was our first local C of C meeting since the election. We had the largest turn out in five years, 53 small business owners. Of the 53 nine stated admitted to voting for Obama. Our main topic for discussion was how to “adapt” to Obamacare, new taxes and new regulations. One of the people who voted for Obama took the podium and stated he voted that way because he “agreed with Obama’s policies on abortion and immigration”. Wow!

    That’s really a double Wow! since he then told us how he will handle the new taxes an regs. Now, I hate to say this but this guy is a Korean immigrant, he owns a dry cleaning plant, seven drop stores and ten delivery vans (yes, those 1%’ers can’t even pick up their own dry cleaning).

    His approach is to “reduce full-time employess to 26 hours a week, hire temps for counter service and make the delivery drivers independant contractors”. I’d have more respect for the man had he just said “screw Obama, I’m paying them in cash under the table”. So he wanted Obama so bad he is willing to cut his employees hours to below subsistance level just to have him as president. What a great guy to work for (sarc). This guy also mentioned that his business is down 30% for the year….he blames Bush, no doubt!

    OTOH, several guys said they were moving their business, selling their business, or just plain retireing all together. But the main bulk of the members just shuffeled around, eyes glazed over, trying to figure out how they would keep in business. One couple whose company makes prosthetics said there are a bunch of new taxes and regulations coming in January which makes their business unprofitable, period! They currently plan to close at Christmas and look for jobs with large companies. They can’t even sell the business because it now has no value. After building it up for 12 years they surrender.

    Very few small or medium businessmen can just up and move their business out of the country. And no one really wants to do that anyway. But as I met with the guys in the service industries I could feel the hopelessness. Their costs are going to sky rocket and they have to pass that on to their customers. That would be us. So it looks like: higher taxes, higher prices, more regulations, fewer hours, less take home pay and less competition. And ultimately, fewer small business start-ups.

    I guess we really are all socialists now.

  2. BTW, tax reciepts in October were up by 21 billion because people were selling off property to avoid even higher cap gains in January. I know I was.

  3. Post Script:

    I just got off the phone with a friend of mine who was not at the Commerce meeting yesterday. Why? He was at settlement for his business. He owned a custom blind franchaise in Mongomery County. Been there since 1996. Bought it for 45k then. Sold yesterday for 2.2 million. He was taking home between 275 and 300k per year. He decided to sell to avoid cap gains. He has a beautiful home in Huntingdon Valley which is also for sale.

    Neither he nor I know exactly what his net will be after the current cap gain tax is paid, but we think it will be a great deal less than in January. He sold it privately, no broker, no commission.

    He called to tell me about the sale and to invite me to a pre-Christmas party at his house. He’s turning the sale of his home to his son who is a real estate broker, then he and his wife will retire to……Brazil. Yep, Brazil. Seems we can’t keep those 2%’ers in the United States even when they retire. He already has a vacation home in Brazil and plans to live there for a while and is interested in starting an import-export business down there. I guess that’s one way to avoid obamatax and obamacare. Little drastic. I guess people need to do what they believe to be in their own best interest. He’s a good guy and I’ll miss him but as he said on the phone: he’s “had enough”. ( I do hope they have Knob Creek bourbon down there or he’s gonna be one very unhappy camper ).

  4. Just another:

    Ffrom Mail online

    Denny’s to charge 5% ‘Obamacare surcharge’ and cut employee hours to deal with cost of legislation

    By James Nye

    PUBLISHED:00:59 EST, 15 November 2012| UPDATED: 01:33 EST, 15 November 2012

    President Obama’s election victory ensured his Affordable Care Act would remain the centerpiece of his first term in power – but that has left some business owners baulking at the extra cost Obamcare will bring.

    Florida based restaurant boss John Metz, who runs approximately 40 Denny’s and owns the Hurricane Grill & Wings franchise has decided to offset that by adding a five percent surcharge to customers’ bills and will reduce his employees’ hours.

    With Obamacare due to be fully implemented in January 2014, Metz has justified his move by claiming it is ‘the only alternative. I’ve got to pass on the cost to the customer.’

    Several other restaurants including Papa John’s, Apple Metro and Jimmy John’s have announced plans to skirt Obamacare by reducing employees hours to make them part-time.

    I guess we do have to kill capitalism to fix it.

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