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Obamacare Will Create Unemployment

Written by Gary North on July 19, 2012

For a business with over 50 workers, it means huge increases in health insurance coverage or a large fine.

If a business has 60 workers, 10 of them are going to be fired. Count on it.

One man who owns dozens of KFC franchises has a choice: a $60,000 fine — excuse me, “tax” — or an additional $546,000 in health insurance payments. He is going to pay the “tax.”

He plans to fire some workers. Then he will hire part-timers. He will get the payroll down to 60.

Cashiers would be replaced by self-order kiosks, cooks with chicken breading machines. These options are too expensive now, he said, but they would make sense then.

We can see what is coming. There will be fewer full-time jobs for workers at the bottom of the rung.

This is what the welfare state does. It kills incentives to work. It also kills incentives to hire workers.


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9 thoughts on “Obamacare Will Create Unemployment

  1. Texas Chris says:

    Government tries to help the "les fortunate", and proving Rockwell's Law, ends up hurting them.

  2. vietnamvet1971 says:

    The Big Bloated Government is the PROBLEM…… Period.

  3. A downside to Obamacare, who would ever thought that?

  4. LiveFreeOrDie says:

    Who is going to have $ to buy KFC? All businesses will be OUT OF BUSINESS in 10 years if this Obamanation is not repealed.

  5. Dr. Barbara says:

    I was going to say the same thing….except I don't think it will take 10 years. I think there will be hoarding which only works if you have money. Or starvation for those of us you don't. Or living hand to mouth off the government hand-outs. I visited Russia shortly after "communism died, (yeah, right)" and the countryside was beautiful but there was no farm equipment to be seen, no farms actually, no people. The people all lived in the cities in flats consisting of 2-room apartments with no elevators. The "grocery stores" had no food, there were no gardens growing food. The people I stayed with had their own little herb garden growing in a box by the kitchen window. Very sad, and very scary since we are headed in exactly that same direction.

  6. What a bunch of BS. This is another article written just to instill irrational fear and anger in readers. Where are the details? Are we really supposed to believe that most of this employees working at this man's KFC are full time employees? I seriously doubt it. Most fast food employees are part time students, or the elderly who already have Medicare, so I'd be suprised if he has more than 4 full timers are each location. Also throwing in that astronomical $546K insurance premiums that he will need to pay to insure his full-timers leaves out a lot of detail. How many employees does that cover and for how long? That could be for 1000 employees over 10 years of payments for all the reader knows, but the author knows that most readers will assume it's for just one year for about 60 employees or so, which it definately is not! Come on, how about some responsible reporting here with FACTS!?

  7. Jstarusa says:

    Be that as it may, it still seems this administration cannot see the big picture on anything. What about the companies that do have lots of full time workers, how will this effect them and most of all what will the end results be? Greed rules my friend, where it be government or the corporate world, and the little guy always loses.

  8. Most everyone here will be voting for Romney, but have you heard what he says he's going to do once he repeals the Affordable Care Act? Check it out, he says he's going to replace it with exactly the same thing, leaving out ONLY the individual mandate, (currently the way the act is going to be paid for). So we'll still have basically the same thing but rather than paying for it by requiring those who can afford insurance to purchase insurance, or pay a penalty, Romney's going to give all the same stuff but put it on the credit card. Look it up!

  9. Bill in NC says:

    Or they'll hire contractors.

    Last business I worked with used landscapers via a contractor so they didn't have to deal with immigration issues.