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ObamaCare: The Neutron Bomb That Will Decimate Employment
Of Two Minds ^ | 22 February 2013 | Charles Hugh Smith

Posted on 02/23/2013 5:50:17 PM PST by Lorianne

ObamaCare will act as a neutron bomb on employment in the U.S. for two basic reasons. Longtime readers know I have repeatedly explained why healthcare, i.e. sickcare, will bankrupt the nation. Here are two of the dozens of entries I've written on sickcare: America's Hidden 8% VAT: Sickcare (May 10, 2012) Can Chronic Ill-Health Bring Down Great Nations? Yes It Can, Yes It Will (November 23, 2011)

I have also explained why ObamaCare's "fixes" are simulacra reforms that don't even address the systemic costs arising from the cartel-fiefdom structure of sickcare:

Why "Healthcare Reform" Is Not Reform, Part I (December 28, 2009)

Why "Healthcare Reform" Is Not Reform, Part II (December 29, 2009)

Sickcare is unsustainable for a number of interlocking reasons: defensive medicine in response to a broken malpractice system; opaque pricing; quasi-monopolies/cartels; systemic disconnect of health from food, diet and fitness; fraud and paperwork consume at least 40% of all sickcare funds; fee-for-service in a cartel system; employers being responsible for healthcare, and a fundamental absence of competition and transparency.

Please glance at these charts to see how the U.S. healthcare costs are double those of competing nations on a per capita basis. Japan provides care for a mere 36% per person of what the U.S. spends--yet millions of Americans remain uninsured or underinsured.

If you set out to design a corrupt, inefficient, wasteful, unfair, deranged and unreformable system, you would arrive at U.S. healthcare.

[charts and diagrams]

86% of Workers Are Obese or Have Other Health Issue Just 1 in 7 U.S. workers is of normal weight without a chronic health problem.

The Patient Protection and Affordable Care Act (PPACA), i.e. ObamaCare, is a neutron bomb for employment. A neutron bomb is an enhanced-radiation thermonuclear weapon that famously leaves buildings, autos, etc. intact but kills all the people, even those inside buildings. vehicles, etc.

ObamaCare will act as a neutron bomb on employment in the U.S. for two basic reasons:

1. It is immensely complex, and already-marginalized small business owners will shed employees or simply close rather than have to figure out what all those thousands of pages of regulations and statutes mean to the survival of their business.

2. ObamaCare's primary mechanisms of lowering costs, insurance exchanges and technocratic selection of "best care practices," do nothing to change the systemic flaws of sickcare.

Many other commentators have already outlined how ObamaCare is driving employers to replace fulltime workers with part-time workers to avoid having to pay outrageously expensive monthly healthcare insurance premiums. In this sense, the ObamaCare neutron bomb is already decimating fulltime employment.

I see this response as a Corporate-America strategy. Corporate America has the human resources infrastructure and financial heft to figure out compliance and exploit loopholes in the insanely complex law. Small business has neither the infrastructure nor the financial resources. Small business owners will rely on the same cartels that are currently providing insurance for guidance, and of course the ObamaCare offerings will suit the financial needs of sickcare cartels.

Once small business owners see the costs of their options, some may opt to pay the penalties and others may follow the corporate strategy of turning each fulltime job into two part-time jobs to avoid paying for coverage or penalties, but many will choose instead to call it quits: either downsize to a one-person/one-household business with no employees at all, or sell/close the enterprise and escape the burdens.

What the lobbyists and attorneys who wrote the Obamacare monstrosity do not understand (because they have no exposure to or experience in the real economy) is the fragility of most small businesses: costs keep rising but revenues are stagnant. The mental and financial stresses keep rising, and ObamaCare does nothing to mitigate either source of stress.

The inside-the-Beltway types who crafted this mess have no idea of the pressures facing legitimate (non-black-market) business in America, corporate and small business alike.

ObamaCare offers even more incentives for Corporate America to offshore operations, and it provides powerful incentives to millions of marginal small businesses to shut down or shed all employees.

I am not alone in simply not wanting to waste the time, money and energy required to understand the new law and its various impacts on my business. We will cling to our already insanely expensive private healthcare insurance, which by the way has been grandfathered in: new self-employed entrepreneurs won't be able to buy the absurdly costly policy we have--they will be offered a range of even worse deals, with higher costs and less coverage.

[chart]

The neutron bomb has gone off, unseen by politicos and the Elites who wrote the bill. It is already decimating fulltime employment, and it will soon add momentum to the free-fall erosion of small business growth and employment.

The strip malls and office parks will still be standing; there just won't be many employees in them.


TOPICS: Business/Economy; Government
KEYWORDS: abortion; deathpanels; demagogicparty; obamacare; partisanmediashills; sequester; zerocare

1 posted on 02/23/2013 5:50:20 PM PST by Lorianne
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To: Lorianne

2 posted on 02/23/2013 6:00:22 PM PST by ClearCase_guy (Nothing will change until after the war.)
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To: Lorianne

Is it a neutron bomb... or more like a tremendous EMP over the middle of the US, with far reaching effects from CA to ME, FL to WA?


3 posted on 02/23/2013 6:05:53 PM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Lorianne

I actually expect numbers like the “unemployment rate” to improve.

Many current full time workers are being converted to “29ers” and additional “29ers” being hired to fill the slack.

The MSM will see it as a huge step forward.


4 posted on 02/23/2013 6:10:26 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: Lorianne

In my opinion, ObamaCare = DeathCare = the next Holocaust (as it was designed to be by Liberal Democrats)


5 posted on 02/23/2013 6:11:26 PM PST by ExTexasRedhead
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To: Lorianne
Only 10%? I believe there will be an awful lot more damage than that to employment.
6 posted on 02/23/2013 6:12:47 PM PST by ASA Vet (Don't assume Shahanshah Obama will allow another election.)
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To: ASA Vet
Yep, there has to be a bigger word than "decimate" to describe the carnage.
7 posted on 02/23/2013 6:27:09 PM PST by Graybeard58 (_.. ._. .. _. _._ __ ___ ._. . ___ ..._ ._ ._.. _ .. _. .)
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To: Lorianne

“What the lobbyists and attorneys who wrote the Obamacare monstrosity do not understand (because they have no exposure to or experience in the real economy) is the fragility of most small businesses: costs keep rising but revenues are stagnant. The mental and financial stresses keep rising, and ObamaCare does nothing to mitigate either source of stress.”

I disagree. It’s all part of the plan.


8 posted on 02/23/2013 6:27:23 PM PST by ConjunctionJunction
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To: Lorianne

Obamacare by itself might be the tipping point, but he’s actually planning a trifecta: the `Affordable Care Act itself (which is proving as time goes by to be anything but affordable); amnesty to 10-20 (possibly more) million foreign lawbreakers, along with citizenship; and, a near double-figure minimum wage.
The dominoes should start falling not long after the first two catastrophes are accomplished, along with hordes of unemployed young people.


9 posted on 02/23/2013 6:35:38 PM PST by tumblindice (America's founding fathers: All armed conservatives.)
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To: C210N

Yes, definitely a time bomb. I expect a rash of retirements, fewer students pursuing medicine, more trying for free healthcare. The outcome is easily foreseen. Not for politicians though.

Medicare/Medicaid will be a disaster within 5 years. Nothing is gained when everything is a loss by those that do the work... Who is John Galt?

Only the worst of those graduating will continue in the medical field. Smart ones will find other occupations.


10 posted on 02/23/2013 6:54:32 PM PST by Deagle (quo)
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To: ClearCase_guy

It’s going to break very soon. I would guess Q4 this year. Long hot summer, Obama will sign a gun ban or at least the framework for one ( they’re finalizing the tracking mechanism in the senate now ), tempers in the cities will flare with more people out of work, corporations will report massive layoffs knowing they can’t pay for obamacare, and those of us with jobs will have to choose: part time to keep job or one-time payoff and out of work.

I’ll take part time if it means keeping my head above water.


11 posted on 02/23/2013 7:18:16 PM PST by rarestia (It's time to water the Tree of Liberty.)
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To: ExTexasRedhead

Obamacare may be the neutron bomb, but the Congress is hitting us with blockbusters in the form of higher taxes.

We will not only be faced with higher healthcare costs, hidden taxes, and crappy healthcare the Congress will finish us off with Higher taxes,more stimulus and worthless money we printed with nothing behind it.

If we make it through the next 4 years without major currency and debt expansion, if we make it through without riots and civil disturbances, I will be greatly surprised.

The Government isn’t buying bullets for nothing.


12 posted on 02/23/2013 7:19:02 PM PST by Venturer
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To: ExTexasRedhead

In fact, Pelosi said “If we pass Obamacare, 400,000 new jobs will be added immediately”. Pelosi LIED. This Obamacare is designed to bankrupt America and the liberal Democrats will be the ones to blame for this fiasco. Someone should go to jail over this law and it should start with Obama and on to Reid and Pelosi. This is what happens when you have one party rule. This is why the left is so morally bankrupt!


13 posted on 02/24/2013 4:34:54 AM PST by sgfan1212
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To: rarestia

The ONE who will set us free from the constraits of free enterprise is out to destroy America. He’s not a capitalist. He’s a communist, sharing the misery with everyone. He should be tried and if convicted with overwhelming evidence, should be publicly hung, just like Stalin. Shameful! He’s living like a king while Amerika is stuggling just to put gas in their cars. How long will we allow this to continue?


14 posted on 02/24/2013 4:38:59 AM PST by sgfan1212
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To: rarestia

The ONE who will set us free from the constraits of free enterprise is out to destroy America. He’s not a capitalist. He’s a communist, sharing the misery with everyone. He should be tried and if convicted with overwhelming evidence, should be publicly hung, just like Stalin. Shameful! He’s living like a king while Amerika is stuggling just to put gas in their cars. How long will we allow this to continue?


15 posted on 02/24/2013 4:39:17 AM PST by sgfan1212
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To: Lorianne
I've been laid off twice under this regime, and the job market is much tougher than the official 8% figure. I guess everyone here already knows that.

But this second time around is even worse than 2009. My next door neighbor has been out of work for 2 years. My BIL for 1. And when I search linkedin for my former colleagues from the first layoff, few of them have full-time jobs.

Fortunately, I started a side business in 2007, with the feeling that I would need it. It will probably help us squesk through this year.

I'm glad that the preezy is able to take vacations regularly, though.

16 posted on 02/24/2013 4:47:19 AM PST by St_Thomas_Aquinas
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To: Lorianne

IT WILL COME!

Remember that phrase.

I will guarantee that the next step Obama will take is to make ALL employees (regardless as to the number of hours worked per 7 day period) will become covered under the Fascist Obama care directives. The camel’s nose is already under the tent and the rest will follow shortly.

For the first time in over 34 years of owning a business, I find myself fearful of hiring any new employees due to the uncertainty of what new Fascist regulations will apply.

For example, Obama has already foisted a law upon us employers that prevents us from considering the criminal records of potential employees. The reason for the bill? Because a greater majority of criminals and prisoners are black and to not hire them is racist and can result in unimaginable financial and physiological pain for the business (or business owner) imposed upon them by the government.

That’s only the start...many other things are awaiting business owners such as the question “will we even be able to get rid of bad employees or have reductions in force as the business slows down in the future?” Will we even have the right to control our own employees while they are on the job?

There are a whole host of potential “land mines” laid out by our Socialist government that will crush small business and ensure that the government will control every aspect of both our business and private lives.

As far as the financial future goes.....it’s simply go day-by-day and wait for the complete crash of our economy.

I’ve never been so worried about the uncertain future of our country, my life and business due to the impact of the result of incompetent and ignorant voters’.


17 posted on 02/24/2013 6:17:21 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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