Small Business Owner on Obamacare: Every Restaurant You Eat At Is Impacted Negatively
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It’s so sad to read these tweets from small business owners who are heartbroken at having to lay off employees because of Obamacare mandates. Unfortunately, now they have to suffer harassment from clueless liberals who actually think that business owners enjoy having to do this. They seriously don’t get that it’s THEIR GUY’S policies that are forcing these businesses to downsize. How stupid can they be?
Survival is nature’s most primal instinct. Whether plant, animal or human, the No. 1 objective is to survive. The same applies to the corporate world.
BizPac Review previously reported that in the days since President Obama’s re-election, companies have announced plans to lay off massive numbers of employees. Other companies are seeking different ways to cope in the coming years, especially with Obamacare and tax hikes looming on the horizon.
The Naples News reported that shortly after the president’s re-election, Papa John’s Pizza founder and CEO John Schnatter would be cutting back on employees’ hours. Similarly, at least one Applebee’s franchisee announced a hiring freeze as a direct result of another four years of an Obama administration. Other restaurants, including Olive Garden, are now following suit.
These moves have nothing to do with revenge or retaliation — they’re simply acts of survival.
The far left has now called for a boycott of both the Applebee’s franchise and the entire chain of Papa John’s restaurants. That makes sense. If they cut hours or freeze hiring, let’s just run them out of business and eliminate all their jobs.
A simple example: a restaurant needs to cover 400 hours worth of waiter service time. Assuming that the pay rate is the minimum wage of $7.25 per hour, and that the 400 hours can be covered without any overtime pay, total wages are $2880 per week, while the employers’ portion of Social Security and Medicare withholding totals $214.56. Over the course of a year, the employee costs for that 400 hours works out to 160,917.12, not an insignificant cost.
If health insurance costs $10,000 per year per covered employee, the weekly health insurance cost, if the 400 hours are met by ten full-time employees, is $1,932 per week. If, on the other hand, the restaurant can employ 20 waiters, each working 20 hour per week, while wages and taxes would be the same, insurance costs would be zero, and the business saves that $1,932 every week. You don’t think that’s significant? Not having to pay health insurance on ten employees, with an assumed individual cost of $10,000 per employee, is a cool $100,000 subtracted from the costs of doing business, and that’s an additional $100,000 added to the bottom line. For a small business, $100,000 can easily be the difference between profitability and losing money.
Our friends on the left need to see that, and understand that.3 Somehow, I don’t think that they will.
Liberals foisted an unpopular policy on a nation, the majority of which did not want. The liberals did not adjust their policy after the shellacking of 2010. Now that businesses are having to respond to the hard laws of math, the same liberals want to boycott those businesses rather than re-think their terrible policies. There is no reaching or negotiating with these people.
Honest question: Do liberals ever do anything collectively that helps businesses? Does the community based reality ever recognize reality, or are the rest of us just left to cope with their childish tyranny?
I honestly think these businesses should target Democrats first for their layoffs and cut hours. It’s only fair, since they voted for this nightmare while their conservative friends and co-workers tried to warn them.
Cross posted at ThoughtsFromAConservativeMom.com
- Economics 101: Why Is It A Surprise That Businesses Would Try To Reduce Operating Expenses?
- Death spiral: Hours cut, workers pushed to part-time due to Obamacare; ‘They keep cutting my hours’
- Insanity: Papa John’s, Olive Garden, others attacked as racist for anticipated responses to Obamacare
- Lib boycott fail redux: Citizens stand with targeted Papa John’s, plan National Appreciation Day
- Group turns to social media to rally support for Papa John’s amid liberal backlash
- Going Galt: Businesses Begin Laying Off Workers, Cutting Hours, Shutting Doors