Wintery Knight

…integrating Christian faith and knowledge in the public square

Companies announce layoffs in the wake of Obama’s re-election

The Washington Times links to this article by Freedom Works.

Excerpt:

 With 20 or so new or higher taxes set to be implemented, ranging from a $123 billion surtax on investment income, through the $20 billion medical device tax, all the way down to the $600 million executive compensation limit, Obamacare will be a nearly unbearable tax burden on the economy.

Who will pay?  The middle-class workforce, of course.

So with another four years for President Obama to look forward to, and the obvious inevitability of Obamacare that this entails, let’s examine the very real jobs that will be lost, and the very real lives that will be affected.

Here are some of the companies impacted by Obamacare:

Welch Allyn

Welch Allyn, a company that manufactures medical diagnostic equipment in central New York, announced in September that they would be laying off 275 employees, or roughly 10% of their workforce over the next three years.  One of the major reasons discussed for the layoffs was a proactive response to the Medical Device Tax mandated by the new healthcare law.

Dana Holding Corp.

As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”.  After laying off several white collar staffers, company insiders have hinted at more to come.  The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.

Stryker

One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December.  Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce – an estimated 1,170 positions.

Boston Scientific

In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company.  Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.

Medtronic

In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs.  That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.

Obamacare encourages companies to limit their number of full-time employees by switching to part-time employees. Some companies are doing that to avoid having to pay Obamacare fines.

Look:

Darden Restaurants

According to the Orlando Sentinel, Darden Restaurants, a casual dining chain best known for their Red Lobster, Olive Garden and LongHorn Steakhouse restaurants, is “experimenting with limiting the hours of some of its workers to avoid health care requirements under the Affordable Care Act when they take effect in 2014″.

JANCOA Janitorial Services

The CEO of JANCOA, Mary Miller, testified to Congress that Obamacare was a “dream killer”, adding that one option she had to consider “is reducing the majority of my team members to part-time employment in order to reduce the amount that I will be penalized.”

Kroger

The American retailer in Cincinnati, Ohio recently was reported to be planning a significant slashing of their hourly workers.  Doug Ross writes:

Operative Faith (a mid-level manager with the company) reveals that Kroger will soon join the ranks of Darden Restaurants and slash the hours of its non-exempt (hourly) workers to avoid millions in Obamacare penalties.

According to the source, Obamacare could result in tens of thousands of Kroger employees being limited to working 28 hours per week.

And of course there are the layoffs by defense companies like Boeing, because of Obama’s defense cuts. The one thing that the government is actually supposed to do – that’s the thing he cuts.

The effects of Obamacare were well-known before the 2012 election took place. But the Democrat voters were just not paying attention when the voted to re-elect Obama.

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Ignorant leftists beginning to learn about economics the hard way

Schadenfreude is such a wonderful thing.

First, young people are beginning to realize that taxing the rich is not as great as they thought. (H/T Hot Air)

Excerpt:

The proportion of people ages 16 to 24 who were employed in July was 51.4 percent, the lowest July rate since records began in 1948 and 4.6 percentage points lower than in July 2008. …

The Labor Department said 4.4 million youths were unemployed in July 2009, or about 1 million more than in July 2008, putting the youth jobless rate at 18.5 percent, about double the overall national percentage.

Fewer young people were even trying to be part of the labor force this year than in recent years, perhaps choosing summer school, odd jobs around the house or idleness instead.

Let’s be clear. If you raise the price of labor while leaving production levels constant, people will be laid off. Period. This is non-negotiable among rational individuals. My recommendation to the young people: put down the Che Guevara t-shirt and step away from television.

Meanwhile, public school teachers are striking against their own union in order to save their jobs. (H/T Hot Air)

Excerpt:

A group of teachers in the North Clackamas School District took the initiative Thursday, amid losing their jobs because of budget cuts, by gathering signatures in an effort to have their voices heard by their union.

The teachers, who gathered outside their union office, said they want a response from the union and put their demands in writing in the form of a petition.

Those speaking out said it shouldn’t have reached this point, and they would have accepted the district’s offer, favoring a wage freeze to save jobs.

“We took a poll in the spring and they got our opinion and the majority said wage freeze,” said Monica Whiteley, who was laid off. “So I would like them to look at the poll or honor it and have us look at the memo of understanding that is out there.”

It’s good to see reliable Democrat voting blocs finally moving beyond rhetoric into reality. The world is dangerous place, and willful blindness has consequences. Next time, they should learn economics the easy way – by reading Thomas Sowell.

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