Here’s one reason; from THE WALL STREET JOURNAL:
Franchisees Try to Stay Below Insurance Threshold; White Castle Slows Its Expansion
By JULIE JARGON
Some restaurant operators are scaling back expansion plans because of uncertainty about the expense of insuring employees under the new federal health-care law.
The concerns are especially acute among smaller operators who are more likely to be on the cusp of the Affordable Care Act’s requirements for increased coverage of workers. The doubt is adding to anxiety over other rising costs for items like ingredients at a time when diners are cutting back on eating out.
Sam Ballas, chief executive of ECW Enterprises Inc., owner of East Coast Wings & Grill, a 26-unit chain in North Carolina and Texas, in March imposed a three- to five-unit limit, for the time being, on the number of restaurants that franchisees can own, because of worries about health-care costs.
More at the link.
That the Patient Protection and Affordable Care Act is a huge, yet still unknown cost for small businesses is hardly surprising; that small businesses would do what they could to remain outside of the PP&ACA’s coverage requirements is a completely rational response. Perhaps some small business owners really would like to go ahead and provide insurance, assuming that all of their competitors are also so required, but the bottom line rules, and it has to rule, or those small businesses go out of business.
But that’s hardly the only problem. From Karen:
Do you remember when the Democrats were ramming through Obamacare and pretending that it was going to cost under a trillion dollars? They were very careful to keep the price tag at about $900 billion, lest the voters have even more reason to hate the law. Well, now that it has passed and we know what’s in it, the CBO estimates that it will cost double what the Democrats and President Obama told us. What a shock!
More at the link. But if the government that was creating Obaminablecare couldn’t get the costs right,1 how could they have been expected to come up with anything as a reasonable projection on what the PP&ACA would cost businesses?
And then there’s this:
Posted by: Phineas on May 15, 2013 at 1:01 pm
At this point, there’s not much we can do about it, folks. Losing a Supreme Court decision and the 2012 election guarantees that Obamacare will go into full effect on January 1st, 2014 – Happy New Year!
All we can do for now is observe and take note of the pain (some of it our own) as businesses make their plans to deal with the forthcoming train wreck, plans that include laying people off to cover the new, federally-imposed expenses:
From Channel 41 Action News,2 Kansas City, Missouri:
I’ve reported on the consequences of Obamacare before, and we’re going to see more and more as we approach 2014 and enter our Brave New World of government-controlled health care. The PPACA imposes immense burdens on businesses, and they will have to act rationally in response, whether by passing on costs to the consumer or cutting costs elsewhere — by layoffs, for instance.
Again, more at the original.
Everything, and I do mean everything, about the PP&ACA that were were told would happen has turned out to be dead wrong. Even a stopped clock is right twice a day, which gives that clock a heck of a lot better record than President Obama and his economists3 and experts and what not.
Phineas is right, of course: due to President Obama’s re-election, we are stuck with this monstrosity. I’ve said before that I never believed that it was intended to work, but simply to pass, and establish the principle that the federal government is ultimately responsible for the individual’s health care coverage, and that, when it fails, the principle will still be established, so something else will be put in it’s place — most probably single-payer — rather than just a straight repeal.
Too bad it’s costing so many people their jobs in the process of failing!
- This statement assumes that they actually were trying to estimate the costs correctly, as opposed to promoting a low-ball number deliberately, in order to get it passed. I take that assumption for the purposes of this article, but I do not take that assumption in real life. ↩
- Phineas’ original footnote: For any Obamacare apologists in the audience, before your knee jerks too much, note that Channel 41 is an NBC affiliate, not the evil FOX. When you’ve lost NBC… ↩
- You know: the guys who told us that the $831 billion, or however much it wound up costing, stimulus bill would hold the rise in unemployment to a maximum of 8%. ↩