Obamacare – Econ 101

Monopoly Free Market

It’s a simple concept; make a thing more expensive and the demand for that thing is reduced:

Andy Puzder, the CEO of CKE Restaurants Inc. which is the parent company of Carl’s Jr. and Hardee’s, told Megyn Kelly on “The Kelly File,” that his company and others will choose to hire part-time employees instead of full-time employees because of increased costs from the health care law.

He said in the six months in 2013 before the Obama administration delayed the employer mandate, which requires companies with over 50 full-time employees to provide health coverage to all full-time employees, employers were already reducing worker hours to prepare for the law.

“It’s very simple if you increase the cost of something businesses will use less of it,” Puzder said. “If you decrease the cost they will use more of it. So if you increase the cost of full time employment, there will be less full time employees. If you decrease the cost of part time employment, you’ll have more part time employment.”

I am reminded of Hanlon’s Razor:

 Never attribute to malice that which is adequately explained by stupidity.

It is becoming increasingly clear, even to Obama’s supporters, that he is stupid.

10 responses to “Obamacare – Econ 101

  1. Yeah, but the Precautionary Principle says that you really should bank on malice…

  2. Thales,

    I think Obama is smart. He keeps lying and failing policy wise, yet he wins elections. He wins political battles like the shutdown. I don’t see how he does not win on Obama care. He blatantly lied on every scandal and America does not care. He lied continuously about Americans being able to keep their health care.

    If you can act stupid and get away with it it then you are very smart. We are ruled by geniuses.

    • Well, politics selects for the wicked and the insane. They are not the intellectual elite by any stretch.

      • Until I see Senator Alan Scott, I am forced to disagree.

        (Alan, I’d totally vote for you absentee. If I ever lived in NC. And if my vote didn’t count!)

        • Until I see Senator Alan Scott, I am forced to disagree.

          I think that for the big jobs, US Senator, Governors and President, the election process is such that any moral, qualified individual self selects out. The single best attribute that signals an unqualified person is the fact that they are running.

          • I think that’s an overly cynical view that, while true in many cases, is not always the case. And regardless, SOMEONE has to do the job. If we assume anyone who wants it is a charlatan, then why would anyone qualified ever take up the mantle?

            I agree that the bunch we have now are by and large corrupt products of a corrupt system, but they’re not the worst the world or the country have to offer. Elect Senator Koch and watch poor people burned in fuel furnaces! The point is that we can’t react with such reflexive cynicism (which I’m just as guilty of, I confess), but instead have to find a way to constructively fix our problems.

          • I think that’s an overly cynical view that, while true in many cases, is not always the case.

            No, you’re right.

            And it’s only made worse by the fact that we’re a train wreck society; we only report on the failures and transgressions of the folks, not the good stuff.

  3. Except that surveys show a growth in full time employees, not a reduction, at least a few weeks ago. http://www.poisonyourmind.com/2013/10/no-word-on-cryogenic-coverage/ Maybe the survey was wrong, but I’ll take data over anecdotes any day of the week.

    • Except that surveys show a growth in full time employees, not a reduction, at least a few weeks ago.

      Yes, a more rigorous analysis would be in order. For example, something that would show hiring pace with and without the ACA.

  4. nickgb,

    If you voted for me in NC that would not count. I just spent a week in Kitty Hawk for vacation. That is the only time I’ve ever been in the state other than traveling through. I fail the residency requirement.

    Exactly what are you disagreeing with? That Obama is a genius or he is a liar?

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