Remember back, several columns ago when I said that 72% of small business owners wanted Romney to win the presidency? Well, I don’t know if you know this, but he didn’t win, and the effects of Romney’s loss are only beginning in the business world.
In my last column, I noted that a business man, named Frank Duffy had said that he would invest $50,000 into new hiring if Romney were elected, because he had confidence in a Romney economic recovery. Otherwise, he would not invest such an amount.
The trend is continuing. Today, a small business owner in Nevada, who employs 114 people, fired 22 of his staff. He claims that his reasoning behind the layoffs was because of the higher health insurance costs imposed by Obamacare. With those costs, he can no longer employ as many people and still keep his business thriving.
In a radio interview, he said this:
“I’ve done my share of educating my employees. I never tell them which way to vote. I believe in the free system we have, I believe in the right to choose who they want to be president, but I did explain as a business owner that I have always put my employees first. I always made sure that when I went without a paycheck that [I] made sure they were paid. And I explained that I always put them first and unfortunately I’m at a point where I’m being forced to have to worry about me and my family now and a business that I built from just me to 114 employees.
“I explained to them a month ago that if Obama gets in office that the regulations for Obamacare are gonna hurt our business, and I’m gonna have to make provisions to make sure I have enough money to cover the payroll taxes, the additional health care I’m gonna have to do, and I explained that to them and I said you do what you feel like in your heart you need to do, but I’m just letting you know as a warning this is things I have to think of as a business owner.
“I had to lay off 22 people today to make sure that my business is gonna thrive and I’m gonna be around for years to come. I have to build up that nest egg now for the taxes and regulations that are coming my way. Elections do have consequences, but so do choices. A choice you make every day has consequences and you know what, I’ve always put my employees first, but unfortunately today I have to put me and my family first, and you watch what’s gonna happen. I’m just one guy with 114 employees — well was 114 employees — watch what happens in the next six months. The Dow alone lost 314 points today. There’s a tsunami coming and if you didn’t think this election had consequences, just wait.”
This is only the beginning. Obama constantly claimed during his first term, as well as on the campaign trail, that he cares about small businesses and the middle class. But what he doesn’t realize, or chooses to ignore, is that the higher costs and regulations in the Obamacare mandate are going to drive businesses–specifically small businesses–into financial ruin. In addition to that, higher taxes on bigger businesses will simply be passed on to the consumer.
I’m not sure what Obama is thinking; what his intentions are. There is certainly a lot to speculate about, but in truth, we can never really know. What we do know is that the stock market is plunging, businesses are laying off employees, and with the tax hikes and regulations going into effect in the near future, I can say with certainty that it will only get worse.
We can’t predict exactly how businesses and the middle class will be affected by all of the financial restrictions, but we have enough clear evidence to create a very plausible picture of what’s to come. If this is happening only two days after the election, the next four years are going to be rocky.