Obamacare Layoffs, Hiring Freezes Begin
http://www.breitbart.com/Big-Government ... ezes-Begin
Obamacare Layoffs, Hiring Freezes Begin
Moderators: mpallett, bakerjw, renegade, Hush
Re: Obamacare Layoffs, Hiring Freezes Begin
I've said it before, but this needs to be said repeatedly --- the school system is to blame here. The school system craps out students who have no idea how economics work. Economics is not a graduate-school level class ... it is not just a collection of market analysis with finite number-crunching, but rather, a conceptual bit of understanding that could be limited to a single seminar as opposed to a degree, a major, a minor, a semester, or even a week. economics should be taught in public school.
The simple point here is that if the compensation of any employee is raised without an equal and proportional increase in productivity or profit, why would anybody do it?
Olive Garden announced that they were going to take the vast majority of their workforce to just under 35 hours per week to avoid the Obamacare tax and there was a major backlash from the public. Therefore, the Olive Garden rescinded their plan, but that doesn't alter the reality of the situation. If they are compelled to compensate more and business doesn't increase, the profit margin is going to drop. How can that not happen?
Stores will close at the locations that will now operate in the red. Stores in the black will not hire new staff (unless old staff quits), and even then, I'll bet that new staff doesn't have their hours cut... instead... they'll never be hired at full-time.
The system will self-correct -- that part is certain. But it will not 'self-correct' by creating more jobs. Obamacare from an employment stand-point is the exact opposite of a 'hire-friendly' environment.
The simple point here is that if the compensation of any employee is raised without an equal and proportional increase in productivity or profit, why would anybody do it?
Olive Garden announced that they were going to take the vast majority of their workforce to just under 35 hours per week to avoid the Obamacare tax and there was a major backlash from the public. Therefore, the Olive Garden rescinded their plan, but that doesn't alter the reality of the situation. If they are compelled to compensate more and business doesn't increase, the profit margin is going to drop. How can that not happen?
Stores will close at the locations that will now operate in the red. Stores in the black will not hire new staff (unless old staff quits), and even then, I'll bet that new staff doesn't have their hours cut... instead... they'll never be hired at full-time.
The system will self-correct -- that part is certain. But it will not 'self-correct' by creating more jobs. Obamacare from an employment stand-point is the exact opposite of a 'hire-friendly' environment.
Re: Obamacare Layoffs, Hiring Freezes Begin
Businesses like Olive Garden will either reduce hours, cut wages, raise prices, or any combination. There will be some businesses that just drop health benefits altogether as it is cheaper just to pay the fine.