This story at Yahoo! Finance reads like something from the alternative media. Meet Teresa Hartnett:
“Hartnett was getting enough steady business that she was ready to take on 60 employees. ‘I was particularly excited about offering benefits,’ she says. That enthusiasm died when Hartnett met with her accountant to be sure she could afford the expansion. Hartnett was faced with the prospect that, once she had 50 workers, she’d be subject to the ACA. She considered expanding her company with part-timers who wouldn’t be covered under the law, or keeping her staff below 50. But none of those options would help her meet the goals she set for her business. ‘I couldn’t even figure out what health care I could offer without it being a problem,’ says Hartnett, whose company is based in Alexandria, Va. Her solution was to stay a very small business, with just a handful of freelancers. She’s turning down offers of business. ‘I’m going to ratchet it down for a while,’ she says.”
This is one of several stories about how businesses are trying to survive Obamacare. Some of thinking they might be able to survive if they trim bonuses. Others are cutting services and letting some employees go. A restaurant owner is considering terminating his delivery service. Others are hoping they can raise prices to meet the new expenses. In this economy, I don’t think that will work. Consider: even Wal-Mart can’t keep profits up:
“The chain on Thursday cut its annual profit and revenue outlook for the year after reporting second-quarter results that missed Wall Street estimates. The company’s stock fell nearly 3 percent on the news. Wal-Mart’s sober assessment adds to worries about consumer spending that arose when Macy’s Inc. lowered its profit expectations for the year after reporting disappointing results on Thursday and Kohl’s Corp. did the same on the following day even after posting solid results. But Wal-Mart’s results are even more troubling because it is considered an economic bellwether, with the company accounting for nearly 10 percent of nonautomotive retail spending in the U.S. Wal-Mart’s latest performance appears to show that many people continue to struggle in the U.S. and abroad.”
So good luck raising prices!
The AP story does not simply give anecdotes. These are not isolated cases:
“A survey of owners taken last month by the advocacy group National Small Business Association found that 20 percent have held off on implementing a growth strategy because of rising health care costs. Thirty-six percent said they had refrained from raising salaries and 26 percent have held back on hiring.”
And yet Obama is demanding a “grand bargain” from Congress that allows him to perpetrate on the United States more “stimulus.” The president wants to drive us further into debt to mask the damage wreaked on the economy by the President’s health care law.
Will AP do a follow up story as small businesses go bankrupt? How much honesty does AP allow itself?
Time will tell. But anyone who can think and see at all should know that Obamacare, far from being a breath of oxygen to a suffocating economy, is functioning as a chokehold.