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  • Side Effects: Fewer Flippin' Hamburgers at White Castle

    Yesterday we saw how Obamacare is leading large employers to contemplate dropping their coverage of employees.  Today we learn it will cripple businesses’ ability to create jobs for entry level workers.

    Thanks to Obamacare, low-skilled job seekers will find it even harder to find work.  And low-income areas will find it even more difficult to attract new businesses.  That’s the lesson drawn from a new analysis by White Castle, the iconic hamburger chain.

    Numbers crunchers there looked at how Obamacare provisions would affect the company’s bottom line.  Of particular interest were provisions that hit employers with a $3,000 per employee penalty—even if they offer health insurance—for workers whose household income is low enough and they get subsidized health coverage through a government-run insurance exchange.

    Curiously, the penalty for hiring and offering coverage to a low-income worker is 50% higher than the Obamacare penalty ($2,000 per employee) for NOT offering coverage.

    The net effect of this weird policy is to discourage businesses from hiring workers from low-income households—those who need jobs most.  According to White Castle’s Jamie Richardson, Obamacare “makes it difficult to justify growing where jobs are needed most—in lower income areas.”

    Heritage analyst Robert Book warned of this months ago. “The Senate health care bill discourages companies from hiring those who need jobs the most and encourages employers to lay off people with family members who have also lost their jobs. The bill punishes employers who hire or retain those workers anyway and harshly punishes employees who have “too many” co-workers from low- and moderate-income families.”

    Book predicted: “The net result would be higher unemployment for low- and moderate-income families and higher health insurance costs for their co-workers—the exact opposite of what the bill’s proponents claim is their goal.”

    As the White Castle report shows, Obamacare is more likely to hurt than help low-income workers.  Additionally, employer penalties create incentives to drop coverage altogether, making a mockery of President Obama’s promise that “if you like it, you can keep it.”

    If employers drop coverage and dump their employees into the exchange, low-income workers will receive generous government subsidies to buy insurance.  Everyone else will be left to face the expense of health insurance on their own—no help from employers, and even less help from the government (zero) than they had before with the ability to use pre-tax dollars.

    To learn about the right way to extend government assistance to purchase insurance to all Americans (and pay for it, too), click here.

    Posted in Ongoing Priorities [slideshow_deploy]

    10 Responses to Side Effects: Fewer Flippin' Hamburgers at White Castle

    1. Billie says:

      The president is forcing NEEDLESS compromise to businesses who don't have a chance to stay in business and continue the benefit of "health care" under this discriminating, unfair bill. UNNECESSARY burden.

      The president needs to mind it's own business and respect the people and businesses to do for themselves, like b4 he thought up this crisis. Get government out of health care and into their OWN job to clean up the deficit, incompetence of government continues to create! THIS WAS NEVER A CRISIS! But since government intervening in PRIVATE BUSINESSES with this unfair bill, it's another way crisis' is getting closer and closer!

    2. Matt Erkert, The Lan says:

      The first lady would like us to believe that White Castle sliders are unhealthy and contributing to an obesity 'crisis' among the people and that we ought to ban them, sliders, from the menu. We, the people, are however, at least until we give up the right, at liberty to be as obese as we choose to be. The obesity crisis appears to lie, not so much, with the individuals of America, but collectively, with the whole government. Our government is obese. We need leaders that are not afraid to put uncle Sam on a diet. I would joyfully vote for any one, regardless of party, geographic location, gender, race, religion, nation of origin, or even sexual preference, who would be brave enough to run on a platform of reducing the obesity of our dear uncle. Especially, if term limits were also on that platform.

    3. Neal Palmquist - Ohi says:

      I'm sure Democrats can fix this problem with Obamacare by using another resolution from congress. There are alot of ideas that have not been formally addressed, yet. Conservatives act like this is a socialist country, but in reality, we still have a long way to go. Liberals can do a whle bunch of fixes and implement even more incentives for employers, like fine reductions and carbon credits for the cmpany when their employees have abortions.

    4. Pingback: Employer Provided Health Insurance May Go Bye-bye | Georgia Health Insurance 411

    5. Alan, NY says:

      Like, this is surprising anyone? Obama is the biggest screw-up since…since…since… we'll you know!

    6. Susan, Herndon says:

      My head is spinning like Linda Blair in the Exorcist

    7. M Party, Florida says:

      Teapartybell.com features this as one of the top ten articles under Healthcare category

    8. Pingback: No More Burger Flipping Jobs | www.statehousecall.org

    9. Matt Erkert, The Lan says:

      The current administration, along with the legislature, ought to be more careful with their obvious sceme of social justice in America. Other Marxist regimes such as the Soviet Union degenerated due primarily because they became underfunded. Cuba is not healthy economically. I don't know, maybe they have a monocracy in mind.

    10. Bill Lee, ArkLaTex a says:

      Obama's actions never cease to amaze by his stupidy. He shows all the time, that he doesn't understand how the economy works.

      Hmmm maybe he wants to destroy this country and make it over in the socialist image…like maybe the successful countries of Europe..like France or maybe Greece or Spain or maybe the coummunist darling of Cuba or Red China!

      Wow maybe we too can have a dictatorship that will keep the population down with forced abortions and sterilization!

      Wonder when the government will require all the people on welfare to be picked up and taken to Exercise Class each morning? When will they tell you what you are allowed to eat?

      It is coming …You wanted an easy life …No risks!

      Big Brother is watching you and will take care of you.

    11. Pingback: Has Anyone Actually Read The Arizona Law?

    12. Pingback: More unintended consequences of Obamacare | Tertium Quids

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