ObamaCare Leaves Trail of Indiscriminate Job Destruction

December 5, 2011

Both Private Job Creators and Local Governments Shed Jobs as Democrats’ Healthcare Disaster Imposes Crippling New Costs

Last Friday’s jobs report showed only 120,000 new jobs created in November, a number insufficient to make a long-term dent in the nation’s sky-high levels of unemployment.
Those looking for a reason why need look no further than the Democrats’ job-destroying government healthcare takeover that continues to plague businesses with uncertainty and job-crushing costs. The job-destroying failure of the healthcare law is both tragic and ironic, given that Democrat Leader Nancy Pelosi promised the government healthcare takeover would create 4 million jobs.
Even state governments are suffering under the burden of the government healthcare takeover and its impossible coverage mandates, and state employees are suffering the consequences as the resulting state budget crunch forces mass layoffs.

BACKGROUND

Last Friday’s jobs report showed only 120,000 new jobs created in November, a number insufficient to make a long-term dent in the nation’s sky-high levels of unemployment:

“JOB CREATION REMAINED WEAK” AND “JUST 120,000 NEW POSITIONS CREATED”: (Jeff Cox, “Economy Creates 120,000 Jobs, Rate Tumbles to 8.6%,” CNBC, 12/2/2011)

MORE AMERICANS GIVE UP LOOKING FOR WORK DUE TO BLEAK JOB MARKET: “The rate fell from the previous month’s 9.0 percent, a move which in part reflected a drop in those looking for jobs. The participation rate dropped to 64 percent, from 64.2 percent in October, representing 315,000 fewer job-seekers.” (Jeff Cox, “Economy Creates 120,000 Jobs, Rate Tumbles to 8.6%,” CNBC, 12/2/2011)

EMPLOYERS HIRING PART-TIME WORKERS FOR HOLIDAY SEASON, UNDEREMPLOYMENT ON THE RISE: “ ‘UNDEREMPLOYMENT’ AT 18 PERCENT – Data from Gallup suggest that recent job growth includes a lot of part-time slots for people who would rather be working full time: ‘Underemployment, a measure that combines the percentage of workers who are unemployed with the percentage working part time but wanting full-time work, is 18.1% in November, as measured by Gallup without seasonal adjustment. That is up from 17.8% a month ago and 17.2% a year ago. Many employers appear to have chosen to hire part-time rather than full-time employees for this holiday season.’” (Ben White, Politico’s “Morning Money”, 12/2/2011)

Those looking for a reason why need look no further than the Democrats’ job-destroying government healthcare takeover that continues to plague businesses with uncertainty and job-crushing costs. The job-destroying failure of the healthcare law is tragically ironic, given that Democrat Leader Nancy Pelosi promised the government healthcare takeover would create 4 million jobs

HEALTHCARE OVERHAUL EXPECTED TO COST CARLS JR. CHAIN $18 MILLION IN NEW COSTS, TWICE THE PRICE OF ALL NEW RESTAURANTS BUILT IN 2010: “Carl Karcher, the founder of Carls Jr., a fast-food chain that’s huge on the Pacific coast, ‘died in 2008 but his legacy, CKE Restaurants, survives. It would thrive, says CEO Andy Puzder, but for government’s comprehensive campaign against job creation. CKE [has] more than 3,200 restaurants (Carl’s Jr. and Hardee’s) … When CKE’s health care advisers, citing Obamacare’s complexities, opacities and uncertainties, said it would add between $7.3 million and $35.1 million to the company’s $12 million health care costs in 2010, Puzder said: I need a number I can plan with. They guessed $18 million — twice what CKE spent last year building new restaurants. …’ ” (Mike Allen, Politico’s “Playbook”, 12/2/2011)

WOMEN AND MINORITIES TO SUFFER DISPROPORTIONATELY AS HIRING IS AFFECTED: “CKE has about 720 California restaurants , in which 84 percent of the managers are minorities, and 67 percent are women. CKE has, however, all but stopped building restaurants in this state because approvals and permits for establishing them can take up to two years, compared to as little as six weeks in Texas, and the cost to build one is $100,000 more than in Texas, where CKE is planning to open 300 new restaurants this decade. …” (Mike Allen, Politico’s “Playbook”, 12/2/2011)

FULL TIME EMPLOYEES TO SEE THEIR HOURS, BENEFITS CUT: “CKE will have to convert many full-time employees to part-timers to limit the growth of its burdens under Obamacare. …” (Mike Allen,Politico’s “Playbook”, 12/2/2011)

“MANY BUSINESSES THAT NOW ARE MARGINALLY PROFITABLE WILL DISAPPEAR WHEN OBAMACARE CAUSES THAT MARGIN TO DISAPPEAR”: “Puzder says one certainty is that many businesses that now are marginally profitable will disappear when Obamacare causes that margin to disappear. A second certainty is that ’employers everywhere will be looking to reduce labor content in their business models as Obamacare makes employees unambiguously more expensive.’ ” (Mike Allen,Politico’s “Playbook”, 12/2/2011)

FLASHBACK: PELOSI PROMISES HEALTHCARE TAKEOVER WOULD CREATE “4 MILLION JOBS” AND “400,000 ALMOST IMMEDIATELY”: “It’s about jobs. In its life, it [the health bill] will create 4 million jobs — 400,000 jobs almost immediately.” (“Pelosi: Health Reform Will Create 400,000 Jobs ‘Almost Immediately,’Real Clear Politics, 2/25/2010)

Even state governments are suffering under the burden of the government healthcare takeover and its impossible coverage mandates, and state employees are suffering the consequences as the resulting state budget crunch forces mass layoffs:

STATES SUFFERING MAJOR FISCAL PRESSURE UNDER NEW MEDICAID COVERAGE DUE TO DEMOCRATS’ NEW HEALTHCARE LAW: “The federal government had provided extra Medicaid help to states as part of the stimulus program. But that help has ended, prompting states to increase their Medicaid spending by an average of 29 percent this fiscal year, according to the Kaiser Family Foundation.”

“Officials say the fiscal pressure that Medicaid puts on states is expected to increase when the federal health-care overhaul takes effect in 2014.” (Michael A. Flethcer, “States face bleak economic forecast, report says,”The Washington Post, 11/29/2011)

LOCAL OFFICIALS FEAR FISCAL PRESSURE ON STATE GOVERNMENTS WILL INCREASE WHEN OBAMACARE TAKES EFFECT: “Officials say the fiscal pressure that Medicaid puts on states is expected to increase when the federal health-care overhaul takes effect in 2014. Although the federal government is required to pick up the costs for people newly eligible for the program, many who are now eligible but not enrolled are expected to be drawn in, and states must shoulder part of those costs.

“States are also struggling to meet the needs of local governments. Many states cut aid to localities during the recession, and many of them want it restored.” (Michael A. Flethcer, “States face bleak economic forecast, report says,” The Washington Post, 11/29/2011)

THE RESULT? STATE GOVERNMENTS ARE ALREADY SHEDDING JOBS AND MAY BE FORCED TO CUT MORE: “The fiscal pressure on states has become a drag on the job market; local and state governments are shedding jobs, even though the private-sector job market has shown signs of improvement.” (Michael A. Flethcer, “States face bleak economic forecast, report says,” The Washington Post, 11/29/2011)