Another example of government destroying business

[famousdavis]

...in the form of health care reform. Do any of these idiots, including Obama, have any clue as to how they are destroying American business? This is a quote from the restaurant industry, specifically fast food and casual dining:

The costs from health care reform is a primary concern for restaurant operators and, in the current form, should (once again) increase the gulf between strong and weak concepts. Under the current health care reform structure, restaurants with 50+ full-time workers will be required to provide insurance for employees by 2014 ("play") or pay a $2,000-$3,000 per year per employee penalty ("pay"). Coverage costs are unknown at this time but are expected to be higher than outright just paying the penalty. Panel participants estimated that the cost to "play" would be 5%-8% of sales, and the cost to "pay" would be 3%-4% of sales. This is significant in an industry where net margins are typically <10%. A key determinant of the actual impact will be whether larger companies chose to "play." In this case, other industry participants will be at a disadvantage in attracting quality employees unless they also provide coverage. We believe the primary effect of the health care legislation for the restaurant industry will be that stronger players (i.e., those with higher margins or the ability to raise prices) will out-compete weaker players.

[poe4soul]

...in the form of health care reform. Do any of these idiots, including Obama, have any clue as to how they are destroying American business? This is a quote from the restaurant industry, specifically fast food and casual dining:

The costs from health care reform is a primary concern for restaurant operators and, in the current form, should (once again) increase the gulf between strong and weak concepts. Under the current health care reform structure, restaurants with 50+ full-time workers will be required to provide insurance for employees by 2014 ("play") or pay a $2,000-$3,000 per year per employee penalty ("pay"). Coverage costs are unknown at this time but are expected to be higher than outright just paying the penalty. Panel participants estimated that the cost to "play" would be 5%-8% of sales, and the cost to "pay" would be 3%-4% of sales. This is significant in an industry where net margins are typically <10%. A key determinant of the actual impact will be whether larger companies chose to "play." In this case, other industry participants will be at a disadvantage in attracting quality employees unless they also provide coverage. We believe the primary effect of the health care legislation for the restaurant industry will be that stronger players (i.e., those with higher margins or the ability to raise prices) will out-compete weaker players.

It's interesting. I provide insurance for my employees. Most of my competitors do as well. We are happy there will be a minimum standard. It will force these low cost providers to stop low balling contracts. The playing field will be level. Two side of that coin. I bet the strong players don't mind if their weak competitors go out of business. Just saying...

[famousdavis]

It's interesting. I provide insurance for my employees. Most of my competitors do as well. We are happy there will be a minimum standard. It will force these low cost providers to stop low balling contracts. The playing field will be level. Two side of that coin. I bet the strong players don't mind if their weak competitors go out of business. Just saying...

You realize the article above is about the big chain restaurants having an advantage over the small, family size restaurants? The government forces employers to carry insurance. Think about it. You have a dream of starting a business and seeing it grow every year. You open one restaurant and then the government comes in and tells you that you either pay for each employee's health care (probably to the tune of $4,000/year) or they will penalize you $3,000 per employee. Oh, and by the way, they'll do whatever they want with that money. If you refuse, they'll fine you and close you down. That's called communism and it's a legal form of extortion.

[Larryrsf]

And the possibility of such threats keeps businesses from opening--and those which are open from expanding, from hiring. Investors look at the risk and pass.....

TOO many politicians have no business experience! Those like Obama and his entire administration, Clinton and his entire administration, and nearly every democrat back to (and including) FD Roosevelt had zero business experience. They had never seen a business balance sheet, never understood the problems every business has.

I remember when Senator McGovern retired from the Senate and bought a bed and breakfast business. In only a few months it went bust, the investors lost their money and the employees were all laid off. McGovern candidly admitted that during his 30+ year political career in House and Senate, he had NEVER had even the vaguest idea of the problems and costs a small business faces--yet he helped craft laws that made it worse for them. While a Senator, he had ignored their letters and calls, thinking they were just rich people complaining because they were not getting richer.

He was astonished to learn that his employees were his adversaries from day one-- caring NOTHING about the business' problem and only about getting as much as they could.

I really think in a Capitalist Democracy like the US, every executive candidate should have at least minimal business experience--and NOT legal training! Lawyers make the worst possible executives. They can't even run the business side of a law firm.

Romney for President.

Larry

[jetdriver]

You realize the article above is about the big chain restaurants having an advantage over the small, family size restaurants? The government forces employers to carry insurance. Think about it. You have a dream of starting a business and seeing it grow every year. You open one restaurant and then the government comes in and tells you that you either pay for each employee's health care (probably to the tune of $4,000/year) or they will penalize you $3,000 per employee. Oh, and by the way, they'll do whatever they want with that money. If you refuse, they'll fine you and close you down. That's called communism and it's a legal form of extortion.

It pleases me to see people calling it what it is: "Communism"

[alangbaker]

And the possibility of such threats keeps businesses from opening--and those which are open from expanding, from hiring. Investors look at the risk and pass.....

TOO many politicians have no business experience! Those like Obama and his entire administration, Clinton and his entire administration, and nearly every democrat back to (and including) FD Roosevelt had zero business experience. They had never seen a business balance sheet, never understood the problems every business has.

You wouldn't want to look very hard at the Bush cabinet, Larry.

Most of them only got business experience as a kickback for favours done while in office.

[poe4soul]

You realize the article above is about the big chain restaurants having an advantage over the small, family size restaurants? The government forces employers to carry insurance. Think about it. You have a dream of starting a business and seeing it grow every year. You open one restaurant and then the government comes in and tells you that you either pay for each employee's health care (probably to the tune of $4,000/year) or they will penalize you $3,000 per employee. Oh, and by the way, they'll do whatever they want with that money. If you refuse, they'll fine you and close you down. That's called communism and it's a legal form of extortion.

50 full time employees isn't exactly a family restaurant. That's a large restaurant.

All I know is my health insurance has gone up 13-20% every year. Free market has done squat to change this. The GOP did nothing. I mean absolutely nothing unless you count part d.

[Larryrsf]

Amazing to read the posts of those who "know" only what they hear on TV or read in liberal rags like the NY Times. They regurgitate that stuff over and over again, and the gullible public slowly adopts it as truth. Slowly people who loved GW Bush after 9/11 came around to hate that good man- and can't say exactly why.... I know why--They were brainwashed.

Thank goodness for talk radio and Fox News, otherwise the evil bastards would have won!

Larry

[Not a hacker]

Amazing to read the posts of those who "know" only what they hear on TV or read in liberal rags like the NY Times. They regurgitate that stuff over and over again, and the gullible public slowly adopts it as truth. Slowly people who loved GW Bush after 9/11 came around to hate that good man- and can't say exactly why.... I know why--They were brainwashed.

Thank goodness for talk radio and Fox News, otherwise the evil bastards would have won!

Larry

So anything leftist is brainwashing and lies, but talk radio and Fox is 'News'? And you really shouldn't be accusing others of regurgitating the same stuff over and over again. You're just upset because the public are gullible enough to be brainwashed by their lies, but not gullible enough to swallow yours.

[lorenzoinoc]

Amazing to read the posts of those who "know" only what they hear on TV or read in liberal rags like the NY Times. They regurgitate that stuff over and over again, and the gullible public slowly adopts it as truth. Slowly people who loved GW Bush after 9/11 came around to hate that good man- and can't say exactly why.... I know why--They were brainwashed.

Thank goodness for talk radio and Fox News, otherwise the evil bastards would have won!

Larry

Larry, this isn't only stupidly ironic, it's illustrates why you persuade noone.

[famousdavis]

50 full time employees isn't exactly a family restaurant. That's a large restaurant.

All I know is my health insurance has gone up 13-20% every year. Free market has done squat to change this. The GOP did nothing. I mean absolutely nothing unless you count part d.

Most entrepreneurs who own restaurants own a chain of them. They start out with one and then gradually grow. They usually form a LLC that is the parent company for all the restaurants. Since the LLC employes more than 50 people, they have to cover medical insurance. What happens, is places like McDonalds don't hire any full time people so they don't have to pay benefits. You see, the intention of the legislation is never carried out. When government controls free enterprise you end up with inefficiency. The smartest, hardest working people don't rise to the top like they should. Instead, they are held back by red tape. There are many people that go to work for one day and claim disability. The employer will tell them to come to work and just sit at a desk and maybe file some paperwork so they don't stress their so-called injury, hoping that they will just quit coming to work so they can stop the disability payments. It's crazy and it's getting worse.

[alangbaker]

Amazing to read the posts of those who "know" only what they hear on TV or read in liberal rags like the NY Times. They regurgitate that stuff over and over again, and the gullible public slowly adopts it as truth. Slowly people who loved GW Bush after 9/11 came around to hate that good man- and can't say exactly why.... I know why--They were brainwashed.

Yeah... ..it couldn't have had anything to do with repeatedly lying about the reasons a war in Iraq was necessary...

[poe4soul]

Most entrepreneurs who own restaurants own a chain of them. They start out with one and then gradually grow. They usually form a LLC that is the parent company for all the restaurants. Since the LLC employes more than 50 people, they have to cover medical insurance. What happens, is places like McDonalds don't hire any full time people so they don't have to pay benefits. You see, the intention of the legislation is never carried out. When government controls free enterprise you end up with inefficiency. The smartest, hardest working people don't rise to the top like they should. Instead, they are held back by red tape. There are many people that go to work for one day and claim disability. The employer will tell them to come to work and just sit at a desk and maybe file some paperwork so they don't stress their so-called injury, hoping that they will just quit coming to work so they can stop the disability payments. It's crazy and it's getting worse.

I get it. Now we're not talking a family business, we're talking something much larger. Somehow I had the visual of mom waiting tables, dad in the kitchen with 8 -10 employees with uncle sam's boot on their throat. Really it sounds more like an investor buying franchises. Or maybe trying to develop a franchise which would lead to a big payoff.

As a side point maybe the cost of fast food prices will go up and people will start eating healthy food again.

I not sure about investing in a business with next to no margin. Maybe that's not so smart for your smartest hardest working people. You'd probably be better off mowing lawns.

I know many industries much higher workman comps claims on Monday from people injuring themselves on the weekend then claiming the injury was job related. This sucks. The study I read, prepared by an insurance company so consider the source, claims that health insurance and short term disability reduces these claims to near zero. Hmm, so if people don't have to fear about making their rent and putting some food on their table they will be honest. Not sure that's right but it's logical.

Don't get me wrong. I'm not a fan of the new health care law. It doesn't address much of anything and only requires insurance. Huh - not a plan? But then what your suggesting makes little to no sense. Your basically suggesting we step into the model of many of the 3rd world countries. This is great for the people with money and access but it sucks for the poor. No school, no insurance, no minimum wage, etc. Sounds more like a caste society. BTW - If you are in the 28% bracket you probably won't end up in the right caste.

[famousdavis]

I get it. Now we're not talking a family business, we're talking something much larger. Somehow I had the visual of mom waiting tables, dad in the kitchen with 8 -10 employees with uncle sam's boot on their throat. Really it sounds more like an investor buying franchises. Or maybe trying to develop a franchise which would lead to a big payoff.

As a side point maybe the cost of fast food prices will go up and people will start eating healthy food again.

I not sure about investing in a business with next to no margin. Maybe that's not so smart for your smartest hardest working people. You'd probably be better off mowing lawns.

I know many industries much higher workman comps claims on Monday from people injuring themselves on the weekend then claiming the injury was job related. This sucks. The study I read, prepared by an insurance company so consider the source, claims that health insurance and short term disability reduces these claims to near zero. Hmm, so if people don't have to fear about making their rent and putting some food on their table they will be honest. Not sure that's right but it's logical.

Don't get me wrong. I'm not a fan of the new health care law. It doesn't address much of anything and only requires insurance. Huh - not a plan? But then what your suggesting makes little to no sense. Your basically suggesting we step into the model of many of the 3rd world countries. This is great for the people with money and access but it sucks for the poor. No school, no insurance, no minimum wage, etc. Sounds more like a caste society. BTW - If you are in the 28% bracket you probably won't end up in the right caste.

Poe, I wasn't throwing out my personal tax bracket. Government involvement in healthcare only makes it worse, never better.