I posted this on the Rush thread when he was discussing this article:
Wow! $1.79 per hour per employee is damn expensive. $1.79 x 40 hours x 47.5 weeks = $3,401 per year per employee.
Now lets do a quick extrapolatoin in the cost of a car....
On average 3 levels in the supply chain
10-12,000 parts per car
On average there is 12-15 direct labor heads per shift per part
1.25 Indirect to support them
A typical company produces 40K cars a week in the US
(12 DL + 15 Ind) x 3 supply levels x 10,000 parts = $810,000 / (40,000 / 3 shifts) = $810,000 / 13,334 = $61 per car
That does not seem like much, but the reality is that this particular company only makes a profit on average of $600 per car. So, this equates to more than 10% of their profits that are already at a paltry 3-4%!
Additionally, this particular company already pays an average of $1,200 per car in tax. The reality is that this is a 5% tax increase on manufacturers!
Good analysis...but in reality, this is a tax increase on consumers. Obamacare just goes on and on when it comes to taxes...