By Brockston Posner Smuck
The fiscally irresponsible nature of the Democratic Party has already started taking its toll on the U.S. job market in less than one week after the President’s re-election.
Within a few days after Election Day, numerous companies across America, both large and small, have announced employee layoffs and hour reductions. The reason? The relative certainty that the Patient Protection and Affordable Care Act will remain on the books.
Companies will no longer be able to afford to keep as many full time employees on their rolls due to the Act’s requirement that all companies now provide healthcare coverage for employees who work over 30 hours a week. This, combined with the rising cost of health care coverage, is forcing companies to reduce their labor force and reduce many full time employees to part-time status.
Between November 6th and November 14th 2012, layoffs and hour reductions have been announced in numerous companies spanning many industries including Papa John’s Pizza, Apple-Metro – a major Applebee’s franchisee, Cummins, Abbot Laboratories, Boston Scientific, and Stryker Corporation. Many CEOs such as Papa John’s John Schnatter have been forthcoming about the layoffs being directly related to the rising operating costs brought on by the Act. The Left’s response to this? The typical liberal attempt to boycott these companies. The fallacy within this attempt is that it will hurt the employees even worse. Refusing to buy the products will only serve to cause more layoffs and underemployment.
These recent layoffs are merely the tip of the iceberg. Douglas Elmendorf, director of the Congressional Budget Office, has projected that the Act will cause 800,000 jobs to be lost – this number doesn’t even include projected work hour reductions.
The only viable solutions to this coming crisis are either a full-scale repeal of the Act or a series of amendments that cushion the blow to America’s job creators.