Post Obamacare Unemployment
Expect unemployment to rise over the next several months. I doubt anyone can predict the future with any certainty. That being said, I think we will see sign that companies are going to start cutting employees rather than pay the stiff fines that Obamacare will make them incur.
- Caterpillar: $100 million
- John Deere: $150 million
- Verizon: Undisclosed, but will make them drop prescription drug coverage, dropping people into Medicare Part D, with the elimination of a subsidy, $665 per person.
- AK Steele: $37 million
- Valero: $15-20 million
- Medtronic: “could force it to lay off a thousand workers.”
- AT&T: $1 billion, yes that’s with a B.
The common retort is that companies can simply pass off the tax to consumers. I really don’t think so. Firms can’t simply pass these costs onto consumers in a time of recession. Only during times of growth, when incomes are growing will consumers take the kind of rate adjustments needed to fund these costs. People who don’t have a job, will not be able to incur these costs, period.
On the bright-side, Castro loves Obamacare.
“It is really incredible that 234 years after the Declaration of Independence … the government of that country has approved medical attention for the majority of its citizens, something that Cuba was able to do half a century ago,” Castro wrote…
Don’t you feel like your in good hands?
So what will Obama do? Well, more stimulus of course! It has worked so good so far that we can’t call it stimulus this time, it’s a Jobs Bill.
But now, besieged with prolonged high-level unemployment, the President and his congressional allies have put forward yet another deficit-enhancement plan. The “stimulus” tag has been abandoned; this is a jobs bill. And the rhetoric defending last year’s spending binge has been duly adjusted, trumpeting the school teachers and fire fighters who kept their jobs due to credit extended to the states by the Federal Government.
The change is anything but subtle, and is entirely appropriate: massive U.S. deficits aren’t stimulating private sector job gains.
Don’t worry though, don’t underestimate a politicians skill are revising past expectations. Expect Obama to say that he never claimed that Obamacare will create jobs. Actually it’s the Leftist, Center for American Progress; 4 million jobs in the next decade. All government jobs probably.
Either way, expect unemployment to go up, and expect the MSM to keeps saying it’s “unexpected.”