November 24, 2010
— Open Blogger Barack Obama's healthcare bill was supposed to be the pinnacle of the Democratic Party's achievment in this new century. Finally, after decades of trying, a mandatory and centralized healthcare regime had become law. We could all breath a sigh of relief because after 234 years our unfair society was finally just.
Well, not quite. Richard Epstein over at Forbes has a great article on the unintended consequences of Obamacare and how the waivers have made a bad situation worse.
Please go read the whole thing.
One great point is how this will affect small businesses:
Economically, the high fixed costs of administrative compliance drive small firms to seek takeover by powerful larger firms whose deeper purses and better political contacts help them weather the storm.
I'm not telling anyone here anything they didn't know, but clearly this bill not only benefits Big Business, who has the extra cash laying around to comply with such laws, but the waiver system also gives them a competative advantage.
The only companies receiving waivers are those with lobbying power and political influence. Obamacare, like almost every other law passed by congress, continues to help the big and established companies at the expense of the small and start up companies. And these people wonder why unemployment is still hovering at 10%.
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Posted by: alppuccino at November 24, 2010 11:53 AM (RMplb)
This really bothers me. I work for a small business. I am willing to bet most of the readers work for a small business.
I think the definition of a small business if i remember correctly is under 500 employees.
It's already hard enough to compete with big multinational corporations that use tax havens and can access dirt cheap labor, but now the government has gone too far.
Small businesses are the companies that are keeping Americans employed. Big businesses often are the companies moving jobs overseas.
Keep trying to crush and and see the unemployment rates skyrocket even further.
Posted by: Ben at November 24, 2010 11:54 AM (DKV43)
Seriously? Because I've honestly never seen much evidence of said intellect.
Posted by: Otis Criblecoblis at November 24, 2010 11:55 AM (fjoLg)
Posted by: AmishDude at November 24, 2010 11:56 AM (T0NGe)
Posted by: kim at November 24, 2010 11:56 AM (4nxhP)
That statement about bigger companies able to weather the storm because of "bigger purses" is a common fallacy. They have a larger cash flow and they are able to "hide" problems longer but in the end this kind of shit will kill them as well.
What big companies are able to do is bring in the big legal guns to figure out ways to get around the law and, as said, get political help.
As for the "definition" of small business, it depends on what federal law you are talking about. Some laws like OSHA start hitting you at 50 employees. Others hit at 100. Most of the more onerous ones are at 500.
Those are the only three break points I know. BTW, you will NEVER find any federal regulation or reg guide which will actually define "small business". That is one of those terms like middle class that every politicians uses a different definition on depending on whether they are talking welfare or taxes.
Posted by: Vic at November 24, 2010 12:02 PM (e4sSD)
Posted by: Ohio Dan at November 24, 2010 12:05 PM (Skc3Q)
As for the "definition" of small business, it depends on what federal law you are talking about. Some laws like OSHA start hitting you at 50 employees. Others hit at 100. Most of the more onerous ones are at 500.
Yeah, the generic definition is 500. I'm not sure if there is a definitive definition.
Obamacare kicks in for companies with 50 employees. I can promise you there are a ton of companies out there with 49 employees who could hire many more, but won't because of the costs associated with going over the magic number of 50.
Posted by: Ben at November 24, 2010 12:13 PM (DKV43)
If you hated GWB, I fail to see HOW the hell you can be happier with THESE fuckbags running the show.
Posted by: Sponge © at November 24, 2010 12:14 PM (UK9cE)
That statement about bigger companies able to weather the storm because of "bigger purses" is a common fallacy. They have a larger cash flow and they are able to "hide" problems longer but in the end this kind of shit will kill them as well.
That's kinda the point i was making. No one can survive this permanently. However big companies can "weather the storm" until the most onerous parts of the laws are repealed and in the meantime they are able to purchase smaller companies at discounted prices because the smaller companies have no other option. It's either sell or take your chances and possible end up bankrupt.
Posted by: Ben at November 24, 2010 12:15 PM (DKV43)
Posted by: Mr Pink at November 24, 2010 12:15 PM (5Y7/N)
Posted by: Otis Criblecoblis at November 24, 2010 12:15 PM (7jgOI)
Posted by: Keith Arnold at November 24, 2010 12:17 PM (Jdtsu)
Posted by: Obama at November 24, 2010 12:21 PM (5Y7/N)
Posted by: Vic at November 24, 2010 04:02 PM (e4sSD)
I disagree. Increased regulation will drive smaller competitors out of the market, allowing larger companies to increase prices. That's why they like regulation.
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 12:23 PM (LH6ir)
About the same as an internet video showing up with Barney Frank eating a pussy.
Posted by: Sponge © at November 24, 2010 12:25 PM (UK9cE)
Posted by: Gregory of Yardale at November 24, 2010 12:26 PM (YPivX)
Some buisnesses are hardware intensive. Their profit comes from a few employees operating machines to turn out a profit.
It is easy to see which one would get hit harder by this new law. This is a prime example of the type of government regulation that I keep telling Monty is what is killing U.S. businesses and driving them overseas.
The commiecrats always harp about the "excesses of capitalism" when this country has not had an actual capitalist economy in over a 100 years.
Posted by: Vic at November 24, 2010 12:26 PM (e4sSD)
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 04:23 PM (LH6ir)
I don't know about that. I can't think of any business, big or small that likes pissing away money on regulatory paperwork or doing a higher volume of business with less profitability due to regulations.
Posted by: lowandslow at November 24, 2010 12:29 PM (rplS1)
Economically, the high fixed costs of administrative compliance drive small firms to seek takeover by powerful larger firms whose deeper purses and better political contacts help them weather the storm.
So, Ben, will you be joining Ace on the Google payroll?
Posted by: FireHorse at November 24, 2010 12:32 PM (sWynj)
Not true in today's economy. While in the short term it will drive out smaller businesses first, most of small businesses are not in direct competition with the big ones. They usually carve out niche markets for specialty products.
As I said, the big businesses like to get "sweetheart" deals that exempt them and not their compeditors. If a small business and a large business are, in fact, making the same product, and both of them must abide by the same law equally. The small business will fail first due to lower cash flow. If the large business gets nothing changed they will fail later. If they try to raise their prices, they get some temporary relief but that will not last because Mexico and Korea don't have to provide all that Obamacare.
Posted by: Vic at November 24, 2010 12:33 PM (e4sSD)
Posted by: Soona at November 24, 2010 12:36 PM (wTWS6)
GE is one of the largest companies in the U.S. Most of their low tech manufacturing has now been moved overseas. About the only thing left in this country is major industrial stuff like commercial electrical components and jet engines.
In addition, they have been at the federal feed bag for decades getting direct subsidies, write-offs , and other breaks. Most recently they got an actual bailout. If we were in a true capitalist nation they would have got nothing and they would have gone bankrupt years ago.
Of course if we were in a true capitalist country without government interference they may have done a lot better and not needed a bailout.
Posted by: Vic at November 24, 2010 12:39 PM (e4sSD)
How is that any different that the previous two years?
Posted by: Vic at November 24, 2010 12:40 PM (e4sSD)
And here is the invitation:
"This is your official invitation to Nate and Casey's Zombie Wedding, starring Bruce Campbell as the Minister of the Dead!
Details:
When: Oct. 30th at 4:00pm
Where: The Sky Church at the Experience Music Project in Seattle
What: We're tying the knot as the official Evil Dead Wedding at ZomBcon starring Bruce Campbell as the minister of the dead.
Why: because this is the wedding we have dreamed of.
Important stuff to know: You must be dressed as a zombie to get into the wedding, you do not need to purchase a ticket to ZomBcon to get into the wedding but would need one to attend other ZomBcon events. Reception following, details to come. RSVP if you want... or show up at 4 to make sure you get in.
Other note: We are flying by the seat of our pants on this one and might have missed people or you might get duplicate emails as I go through our lists... please pass this along to those who would want to know.
Also, we don't currently have a gift registry but plan to provide one soon.
More info to come,
Nate and Casey"
Posted by: WalrusRex at November 24, 2010 12:41 PM (TVvXc)
It's not the first choice of any company. But given the realities, they will support regulation because of the anti-competitive benefits.
Just look at the behemoths in America. They are so far up the government's ass, with huge staffs in DC, and lobbyists on their payrolls.
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 12:42 PM (LH6ir)
Posted by: alppuccino at November 24, 2010 12:50 PM (RMplb)
Posted by: Soap MacTavish at November 24, 2010 04:41 PM (vbh31)
The socialist indoctrination centers (public education system) has done it's job. It's very frustrating to talk to anyone under the age of 45 anymore. The ignorance of even the basics of civics, government, and economics is so widespread that I'm beginning to feel that the USA turned the corner to hard core socialism many years ago. There may be no going back to the US Constitution. I'm terribly afraid that the Great Experiment is over.
Posted by: Soona at November 24, 2010 12:54 PM (wTWS6)
Posted by: WalrusRex at November 24, 2010 04:41 PM (TVvXc)
I looked at a couple of those photos and all I can say is I'm glad I wasn't invited.
Posted by: Ronster at November 24, 2010 12:55 PM (9q4PA)
Posted by: Soona at November 24, 2010 04:54 PM (wTWS6)
On the other hand, you can still get bacon!
Posted by: Radioactive Satellite Of LOVE at November 24, 2010 12:57 PM (zqzYV)
Posted by: Ronster at November 24, 2010 12:58 PM (9q4PA)
I don't know about that. I can't think of any business, big or small that likes pissing away money on regulatory paperwork...
I doubt they like actually doing the paperwork or paying for others to do it. But if it means your smaller competitors are squeezed out by compliance costs, well hell, that's just the cost of doing business.
Example: The big financial firms have been gaming the regulations for years, and while I didn't waste my time looking at the new FinReg deal, I don't need to. I know already they gamed the process to finally finish off the small firms.
Posted by: spongeworthy at November 24, 2010 01:00 PM (rplL3)
Instead of singling out a group of people for punishment, Liberals simply blanket-punish everyone, and then give waivers to all their friends.
Everything works out the same.
.
Posted by: gastorgrab at November 24, 2010 01:02 PM (H2LlS)
On the other hand, you can still get bacon!
Well, there is still that. But after just watching Cavuto, I know there's people working to deny us even bacon.
Posted by: Soona at November 24, 2010 01:04 PM (wTWS6)
#3: While I admire Obama's intellect, I can't help but think he couldn't poor piss out of his boot if the directions were written on the heel.
This comment doesn't make any sense.
You don't wear boots while playing golf or basketball. I mean, why would President Obama have boots?
Posted by: FireHorse at November 24, 2010 01:07 PM (sWynj)
But we're getting the joys of finding out what's in it AFTER its fucking PASSED!!!
I'm going to question the timing of the waivers. Not that I have a clue how soon after the bill passed that these waivers were granted, but I'm going to accuse the waivees of having some sort of advanced info or something.
Just for fun.
Posted by: Mama AJ at November 24, 2010 01:08 PM (XdlcF)
Economically, the high fixed costs of administrative compliance drive small firms to seek takeover by powerful larger firms whose deeper purses and better political contacts help them weather the storm.
So, Ben, will you be joining Ace on the Google payroll?
heh.I'm just a temp while the professionals are on vacation.
They feed me a thin cabbage soup which they pour through the grates above me while i sit in this cell typing.
Posted by: Ben at November 24, 2010 01:11 PM (DKV43)
@ Ben, #4: I own a small business - nine employees, all but one of whom were unemployed (so yes, I created or saved move jobs than the whole Obama administration did). Since my employees may lose their health benefits if costs go up, I will be demanding a waiver. What do you think my chances are?
slim. Does this affect you? I was under the impression it only affected companies with 50 or more employees. I don't know the details, that's the problem, no one seems to know the details.
Posted by: Ben at November 24, 2010 01:12 PM (DKV43)
They want to kill the middle class. That's the endgame.
We're using up too many resources. The ruling class has a solution--revert to a two class system: the upper class and the serfs.
Posted by: Warden at November 24, 2010 01:13 PM (HzhBE)
Posted by: Dr. Jugears McJustice at November 24, 2010 01:17 PM (GwPRU)
We're using up too many resources. The ruling class has a solution--revert to a two class system: the upper class and the serfs.
The elites and the flyovers.
The monarchy and the commoners.
The party members and the workers.
As old as civilization itself.
Posted by: Soona at November 24, 2010 01:20 PM (wTWS6)
Obama has at best a mediocre 'intellect': He's the type of half-smart POS who borrows heavily from other people's ideas without giving them credit
He's a tool, not a craftsman; a passenger, not the pilot
( I have so many more of these,,,,,,,,, )
Posted by: SantaRosaStan at November 24, 2010 01:20 PM (UqKQV)
I looked at a couple of those photos and all I can say is I'm glad I wasn't invited.
Posted by: Ronster at November 24, 2010 04:55 PM (9q4PA)
You mean those people are dead to you.
Posted by: WalrusRex at November 24, 2010 01:29 PM (TVvXc)
I thought it was well done. Some of do have a sense of humor.
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 01:31 PM (LH6ir)
Posted by: International House of Pancakes at November 24, 2010 01:31 PM (3qItU)
Posted by: iamfelix at November 24, 2010 01:33 PM (kzFnw)
Posted by: Vic at November 24, 2010 04:33 PM (e4sSD)
Right. Niche markets like food and health care and landscaping and construction....
You are wrong about the separation in the economy. It is a continuum.
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 01:37 PM (LH6ir)
Hey, I'm all for the destruction of a small business by the market. If you can't hang with the big boys, tough shit. But being driven out by government regulation is a different story.
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 01:43 PM (LH6ir)
oHH! oHHH! How am I doing? Do I sound smart?
What if I introduce my point like so?
Ahem...
Onomatopoetic-ally speaking ...
uhm... well, you know ... and so forth and thusly.
Posted by: Warden at November 24, 2010 01:53 PM (HzhBE)
Posted by: CharlieBrown'sDildo ( NJConservative) at November 24, 2010 05:37 PM (LH6ir)
The small business I was talking about was manufacturing. If you read the later posts I wrote those businesses that you just talked about are all labor intensive and will get hit doubly hard by this law, assuming they are held to it.
Posted by: Vic at November 24, 2010 02:14 PM (e4sSD)
Any pole showing Obamacare ticking up with poularity - be aware. Don't buy it. The way the pole questions are asked twists the outcome of the pole are they doing this? You betcha they are.
People like the sound of the pre-exsisting condtition coverage, but they hate the rest of it, escpeally the individual mandate. so the libs will play up the first part and continue to spin their poles in that direction.
Posted by: Lemon Kitten at November 24, 2010 02:19 PM (0fzsA)
Must read: In fact - Please make this a headline:
Harry Reid plans Union pay back during lame duck session. He will push nicley worded union pay back scheme that will cost tax payers more and dirve local budgets into the toilet - like Detroit.
RTWT!
Posted by: Lemon Kitten at November 24, 2010 02:24 PM (0fzsA)
Posted by: Dr. No at November 24, 2010 07:19 PM (31p59)
it looks like his great plans for electronic snooping medical records aren't working out so well either.
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Equal Protection... for Thee... but not for Me...
Because some Pigs are more equal than others..
Posted by: Romeo13 at November 24, 2010 11:51 AM (AdK6a)