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Any business faced with rising costs has to do an evaluation of their ability to mitigate those costs either through increased production, or cost cutting.
If the market won't support expansion, then the most obvious cut is always where the highest expenses are, employees.
Now, that means you either don't hire when people retire or quit, or you lay off full time employees.
To make up for that deficit to keep production at the same levels, that means either mechanization if possible, investing in machines to increase production instead of human hands, or you switch to part-time or contract labor which do not have benefits and it also reduces your costs on paperwork as you don't have to hire someone to fill out all the appropriate forms associated with each employee.
In my business, we chose mechanization and contracting for services. Instead of having 8-10 employees, we can now maintain our production with only 2 full time workers, both owners of the company.
Some places cannot do that as they rely on human power for production, so I would see large cutbacks in labor and reducing production until an equinimity is reached where the profits and the expenses balance.
That will probably mean demanding the remaining workers produce more while at the same time not taking jobs that would have increased the bottom line, but keep the business in business.
Business is just basically a math equation. If you remove the emotions, you have the basic figures you need to estimate how you survive, and part of that equation will be fewer jobs and benefits and less taxes paid.
The next 4 years will be a repeat of the last 4, only worse because a lot of business has already cut to the bone and can't go any further.
Look for a lot of business closures, liquidations, and early retirement from those that can.
Many more jobs will be lost in 2014 when the mandate kicks in. People who voted for Obama listened to sound bites only and have a shallow knowledge of how keeping Obama in will bring more unemployment and then more foreclosures. If you lose your job , and can't find another , you lose your home too.
I hear in the next two years millions more mortgages will adjust to a higher rate and many will struggle to pay the mortgage and many will wind up in foreclosure.
Obama is not a good president and has no answers to any of these problems.
Oh, lord, people, read the darned plan...SMALL Businesses are NOT required to purchase Health Insurance for their employees. If they do, they get a tax credit. Businesses with over 50 employees have ALWAYS been mandated to provide HC Coverage.
Last edited by carterstamp; 11-08-2012 at 01:02 PM..
Health care costs will rise drastically as Obamacare takes on more free recipients of healthcare. Someone has to pay for it all and it will be the paying customer. If your employer pays for your healthcare their cost will go to the moon and keep going up.
Oh, lord, people, read the darned plan...SMALL Businesses are NOT required to purchase Health Insurance for their employees. If they do, they get a tax credit. Businesses with over 50 employees have ALWAYS been mandated to provide HC Coverage.
I think you need to understand that changes are still coming out of various agencies.
The bill itself had no details. The details are emerging.
Feds need 18 pages to define 'full-time' for Obamacare | WashingtonExaminer.com
The IRS rule is key because companies with more than 50 full-time employees must provide health insurance under Obamacare, or be fined. Business groups have been warning that small companies might try to replace full-time workers with part-time help to avoid being forced to offer health insurance in 2014, but the 30-hour full-time definition is likely to undermine those plans.
The lengthy 18-page definition caught some in the business world by surprise. "It's scary," said Randy Johnson, the U.S. Chamber of Commerce senior vice president for labor, immigration, and employee benefits. "It's just a small example of two words under our healthcare law of 2,700-pages," he said, adding: "It says to me things are awfully complicated."
Johnson noted the new Obamacare ruling to demonstrate how oppressive federal regulations have become on American business.
Yes, my insurance rate has skyrocketed in the last year or so faster than it had before. No Mitt koolaid drinking, just the truth. I'll break out the bills, if you'd like.
Also, the coverage we receive now is worse than just 3-4 years ago. Higher co-pays, less stuff covered.
Oh yeah, the layoffs. Just found out this morning that a round of layoffs has occurred at my wife's work today, two days after the election. She survived for now, but you'll be hearing a lot about layoffs in the coming months.
Democrats, congrats on your win. My boss says his taxes are going up 14% next year. No raises for me, probably. Yay.
I'm loving the deflection and denial going on in this thread. Until the hour reductions and layoffs start hitting some of the liberals, they're going to continue to deny that Obamacare is anything but a fantastic law that is going to provide everyone with affordable health care. They'll continue to blame the business owners who are trying to save their businesses, or blame the GOP even though not one Republican voted to pass the law.
For those of us that have been warning about the perils of the PPACA for several months, hopefully we'll survive the fallout of a law that was shoved down our collective throats by an administration that was clearly not looking out for the best interests of its constituents.
I'm loving the deflection and denial going on in this thread. Until the hour reductions and layoffs start hitting some of the liberals, they're going to continue to deny that Obamacare is anything but a fantastic law that is going to provide everyone with affordable health care. They'll continue to blame the business owners who are trying to save their businesses, or blame the GOP even though not one Republican voted to pass the law.
For those of us that have been warning about the perils of the PPACA for several months, hopefully we'll survive the fallout of a law that was shoved down our collective throats by an administration that was clearly not looking out for the best interests of its constituents.
But it was and is looking out for our best interests. Sometimes when someone is sick you have to help them get better and sometimes by force. This happens very often to the mentally ill. This is the position many in the GOP are in.
Maybe because the majority of Hispanics voted for Obama.
Majority of Asians and Blacks did as well...Point?
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