Our Peek-a-Boo President

I know what our President was thankful for on the day before Thanksgiving.

He was thankful that in his administration, the world can be altered without regard to either the Constitution or reality.  He was thankful that Congress (after fighting tooth and nail to get the original Obamacare legislation passed under the pseudonym of the Patient Protection and Affordable Care Act or ACA) can be ignored as he single handedly changes the carefully crafted language of the law to reflect his inability to get any part of it to actually work as advertised.

Well, he’s got that ignore the Constitution part down pat.  Given the number of times he’s ignored it, or trampled on it, of tried to destroy it, he’s found out that it’s a lot like playing golf.  The more often you do it, the easier it gets.

It’s that ignoring reality part that always seems to come back to bite him in a tender spot.  The most current counter-attack by reality against Obama’s fantasies is going to hit him right in the delayed mandate area.

The Politico, a reliably left leaning outlet, reported the story on Wednesday in an article titled “Small business Obamacare online enrollment delayed a year”.  

Politico reports:

The delay of the small business exchanges comes as little surprise, as the administration had said earlier this week it would offer alternative ways for small businesses to enroll. Still, it undercuts the White House message that it’s beginning to turn around the disastrous rollout of the health care law.

The Obama administration has NOT delayed the requirement for small businesses with more than 50 employees to actually acquire health insurance policies that comply with the various mandates inherent in the ACA.  He has only delayed (for one year) the requirement that they use the on-line “exchanges” to acquire it.

As if to ease the pain, the White House told small businesses that they could simply bypass signing up for Obamacare on the website but can instead, praise the Lord, do it the old fashioned way, like phone a broker, mail an inquiry to the insurer and sign up via “snail mail” or just walk in and chat with one.  It seems he still thinks that buying a group health insurance policy is not very different in complexity than Michelle running to the store to buy arugula.And exactly what does this achieve for Obama?  In his mind, I’m sure, he thinks that as long as the health insurance costs for small businesses don’t make headlines, he’s safe and there will be no adverse election impact on Democrats in November 2014.

Enter reality, stage right.  Small business, generally defined by the Small Business Administration as any entity of up to 500 employees, differs from politicians in that they tend to plan ahead and look at the risks and probable costs of what they are going to be doing in the future.  Regardless of what Obama and Company think, their desires do not create reality, even if they close their eyes and wish really, really hard.

In the real world, changes in costs lead to changes in behaviors.

As an example, assume a smallish business with 200 employees which is relatively labor intensive.  Costs, including payroll, payroll taxes, unemployment insurance, paid holidays, paid sick leave and paid vacations account for about 30% of the total costs of every item they produce.  Company paid medical insurance adds another 10% to that number, so the total cost of labor is actually 40% of the total costs of goods produced.

Now along comes the Affordable Care Act and health care premiums for that company’s employees are quoted and management finds that the new rates for insurance that comply with Obama’s mandates are going to rise 60% above their current level.

That’s 60% above the 10% that the company is paying already for health insurance for their employees.   The cost of labor would no longer be 40% of all costs, but 46%, and therefore total cost would rise to 106% of current levels.  To stay in business, the employer would have to raise the sales price of the widget or whatever it is that they make by 6% PLUS their normal margin.

So the employer has to do some serious research and analysis before he can commit to this new cost.  What percent of his competitors’ costs are labor related?  How will the market react to a 6%-plus increase in prices?  What if he invested in automation and replaced workers with machines?  Could he function with fewer full time employees and more part timers?

Obama might think that delaying the onset of the website mandate will keep the adverse economic results of these analyses from being seen by the public and the media until after the 2014 elections, but if so, he is displaying the same level of logic used by a three-year old who covers his face with his hands and announces “You can’t see me!”

The adverse impacts will be made public, especially those regarding planned layoffs.  In addition to spreading of that bad news by word-of-mouth, many states require that employers advise both the government and the employees of potential or planned layoffs months in advance.  Trying to hide that by delaying the implementation of the website is like trying to hide Mount Rushmore by throwing a doily over it.

So Obama and Company may be playing “Peek-a-Boo, You Can’t See Me” but in the world of reality, we actually can see him.  What a shame, Barry, you lose…but so do the rest of us.


About Jim Yardley

Retired after 30 years as a financial controller for a variety of manufacturing firms, a two-tour Vietnam veteran, and independent voter.
Gallery | This entry was posted in 2014 election, 2016 election, Barack Obama, Constitution, Democrats, Economy, Elections, Government Spending, Healthcare, Jobs, Observing Our Culture, Political Doubletalk, Politics, Taxes, Tenth Amendment and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

3 Responses to Our Peek-a-Boo President

  1. Pete Morin says:

    C’mon Jim! Didn’t you know Barry is the smartest man EVER to assume the presidency? Valerie Jarrett( the smartest adviser EVER to the smartest president EVER) has told us so. They must know more than mere mortals such as you, and other business folks, who have to deal with the everyday scrum of everyday life. The current troubles are just a distraction to keep Barry from getting bored.

    Yes, Barry knows all. In fact, he’ll be replacing Jay Leno with a new version of Johnny Carson’s old character Carnac the Magnificent.

    Anyway, Carnac, er Barry, will be commiserating with his crack business crony capitalist team to correct any problems that originate from us recalcitrant, dim witted Neanderthals. So sit back folks and enjoy the next three years of enlightened Progressive rule, liberated from the detritus of lesser human thought.

  2. J-M says:

    They say that stress can kill you…I hope it does before the O’s minions give me a shot of euthanasia. There is NO WAY that I can see to stop the damage this one bill has inflicted. The employers are already finding that it’s better for them to have only part timers. The ACA and no overtime contributes to this. There is no way that the insurance companies are going to roll back any prices. They must LOVE supplying the “essential” care like birth control pills as opposed to hospital visits. Who can pay the deductables? I can’t, especially when I’m paying a small fortune for the health insurance in the first place. Since nobody wants to tackle the prohibitive and ridiculous COST of health care, it will continue to rise. It already soaks the working poor, and eventually our only option will be for forego health care and present ourselves for euthanasia when the pain is too great. We WILL have to pay the fines, and still not have health insurance, so that the government can pay down the deficit. (not that that will ever happen)

    We can’t own a home or a bank account any more because the ACA will take the money and the hospital will take the house. If this whole bill isn’t a recipe for disaster, then I guess I’m misguided.

    I can hardly wait for the teeming hordes from south of the border to get amnesty and free health care. That will solve the whole problem with the ACA. That’s what they are saying. An amnesty free-for-all will make the ACA solvent. I wonder if I would feel better if I took up drinking adult beverages and smoking the newly legalized pot?

  3. Occam's Peeling Wallpaper says:

    “In the real world, changes in costs lead to changes in behaviors.”

    I believe, Mr. Yardley, that you have concisely stated one of the fundamental
    strictures of our universe, like pi or the Law of Gravity.

    Did I wear a hat, I’d take it off to you.

    To J-M: I am in complete agreement with you. We can only
    hope that, sometime before the elections, a majority of the
    voting public will begin to shout, “Holy [expletive deleted],
    the Emperor is bare-ass nekked!”

    In the meantime, I raise my glass of adult beverage to you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s