All choices have compromises. By choosing to reelect an anti-business President, Americans are now facing layoffs from companies that had hoped for a Romney Presidency and the repeal of Obamacare. Those hopes gone, companies large and small are letting people go. At least 10,000 people have been let go in the past 48 hours, and companies haven’t even begun layoffs in earnest.
A lot of conservatives seem to have recently discovered Daily Job Cuts as a way of tracking the carnage, but even though it is a good reference, it doesn’t begin to capture the magnitude of loses we can expect. Small businesses who only have a handful of employees are going to layoff staff by ones and twos and threes, and that doesn’t make even the local media. If someone postulates that we’ve already had 20,000-30,000 layoffs this week, I’d have to say that is entirely plausible.
It is basic economics: by forcing the Obamacare mandate on the American people (without a single Republican vote in either the House or Senate) and American business, the Democratic party has imposed a huge burden on the cost of doing business in the United States. Money that would have otherwise been used for expansion, business development, and job creation is now being retasked to pay for Obamacare. This has immediate and delayed effects.
The immediate effect is that companies have less money for payroll, and have to make adjustments to their cashflow. In a down economy expected to enter another recession, corporations have a duty to their shareholders to cut costs. In companies already made lean in the current recession, that translates to immediate and intermediate layoffs over the next year.
Even worse, the reduced manpower/brainpower will translate to less innovation, lowered profits, and more layoffs and business closing moving forward, placing even more people on the dole.
You cannot tax your way to prosperity. Everything offered by the government for “free” has a real cost, one that is typically far more inflated and bloated that the private sector equivalent.
Obamacare, like every socialist program in every country that has every tried them, leads to economic ruin.
We’re just seeing the beginning.