Post # 172
Have we talked about unemployment?
Since the economic crash of 2008, unemployment has been a major concern of the citizens of this county. There was a lot of discussion in the Presidents’ first run for office how he had plans to turn the economy around, and in his second run for office, to “stay the course, we are about to turn the corner”.
Depending upon your source reports, prior to the crash unemployment was 4.9%, at the height of the recession it was 10.2% and today it is hovering around 8.3%. All home owners were plunged into financial crisis as the promoted, advertised, pushed, and horn-swoggled purchasers were duped into the home-investment-turn-around game, only to find that speculators behind the scenes were controlling the market. Once they pulled out, down we went. Many owners that plunged under water, also lost jobs, as well as retirement investments. The demand for businesses products fell, further decreasing the need for workers. Workers, not working, couldn’t buy products, so the recession extended itself. On top of that, placing us in the world economy, placed the entire industrial world at risk as monetary markets crashed.
I think I can see the corner we are about to turn. It has been a long time coming, but it appears, based upon local information, that President Obama may have created the vehicle that will reduce unemployment!
Unemployment salvation may just come in the form of Obama Care. We’ve been hearing about the fears of Obama Care for a couple of years, the FEAR is its’ thousands of pages of law without substance. The substance is left for committees to mandate. (If you talk to hospital administrators you’ll find that Obama Care mandates are being released weekly, on Friday’s. The management of these mandates is becoming horrendous, and will drive medical costs through the roof, or even eventually shut some facilities down.)
A recent article in my local paper discussed the Health Care reform and its affect on local businesses. Many of the respondent-businesses stated that they have employees working less than 40 hours per week while not providing health care.
Public Law 111-152 (Obama Care), Section 4980H(c)(4) affects businesses with over 50 employees, such businesses will be required to provide health care for everyone working 30 hours or more per week. Here’s how it will work.
1. If you are an employer with 50 or more full time employees, you MUST provide health care or be penalized, up to $2000 per full time employee.
2. If you are an employer with 12 or less employees you could get a Federal Credit, up to 50% of your premiums required to be paid, to help your business pay for the premium cost.
3. If you are an employer that falls in between (25-50 employees) , you get nothing, nada, no help.
Returning to the discussion in my local paper, businesses were leaning toward two options; 1. creating more part-time, less than 30 hours per week, employees to avoid the mandated health coverage or 2. turning full-time employee positions into contract positions, where health coverage is not the responsibility of the business.
So, Obama Care might actually help drop the unemployment rate, by putting more people to work, albeit, part-time.
That is unless, the unemployed find that Welfare provides more money than part-time work.