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A business owner in New Jersey explains why he’s not currently hiring. He goes into detail about how much it costs the employee to work, and how much it costs him as the employer to employ, and sums up with what I suspect are the feelings of many business owners in America who are sitting on cash right now waiting for the right time to invest, but who are uncertain and wary of doing so under this anti-business administration:
Every year, we negotiate a renewal to our health coverage. This year, our provider demanded a 28% increase in premiums—for a lesser plan. This is in part a tax increase that the federal government has co-opted insurance providers to collect. We had never faced an increase anywhere near this large; in each of the last two years, the increase was under 10%.
To offset tax increases and steepening rises in health-insurance premiums, my company needs sustainably higher profits and sales—something unlikely in this “summer of recovery.” We can’t pass the additional costs onto our customers, because the market is too tight and we’d lose sales. Only governments can raise prices repeatedly and pretend there will be no consequences.
And even if the economic outlook were more encouraging, increasing revenues is always uncertain and expensive. As much as I might want to hire new salespeople, engineers and marketing staff in an effort to grow, I would be increasing my company’s vulnerability to government decisions to raise taxes, to policies that make health insurance more expensive, and to the difficulties of this economic environment.
A life in business is filled with uncertainties, but I can be quite sure that every time I hire someone my obligations to the government go up. From where I sit, the government’s message is unmistakable: Creating a new job carries a punishing price.
And yet there are still people wondering why the unemployment numbers aren’t getting any better? They can stop wondering now. In reality, the could have stopped wondering the moment that Barack Obama was sworn in as President. This opinion piece just puts a fine point on it all.
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I think the govt could fix this by requiring that businesses hire X amount of employees per year. Like a mandate of some sort. I mean, people have a RIGHT to our stuff, right? No reason EVIL BUSINESSMEN should be able to have all the glory. And surely government knows best. Right? Right?
Hopefully, this November’s elections will help.
They cannot come soon enough.
I don’t know any small business that can afford to hire new employees with the uncertain cost of providing future benefits. I am in the process of combining my practice with four other independent physicians so we can share resources and cut down on costs. In a small business market like an independent physician’s office, the health care costs are higher because they are almost underwritten as a collection of individual policies rather than a larger group with more diverse risks. Our health insurance premiums rose 58% in three years, while reimbursement has decreased 12% at least. I would normally hire another nurse and medical assistant to keep up with increasing patient volume, but now I can’t afford this.
Unfortunately it will be a long “recovery” even with the optimistic sounds we are hearing from the BO administration. Today I received an e-mail from a credit union–my husband and I are members. They are closing a branch office, which is the closest for us to use. They site the economy and the only way they could cut down costs was to reduce staffing and facilities…..exactly what the posted employer says above.
Can someone please tell the President that there is no real recovery? Of course, you will have to get all the czars this info since he doesn’t seem to listen to the average American business owner or citizen for that matter!!!!
A short cogent rationale for not hiring! Unfortuantely, and to our combined detriment, the solution this business owner is looking for will never come from the Obama administration!
November offers the beginning of the solution. We either vote the dems out and hold the pubs feet to the fire or we all slowly perish!
It’s amazing how closely the Obama’s administration’s policies are paralleling the same mistakes made by FDR during the Depression, mistakes that kept unemployment high. Back then it was “blame the businessman,” too.
The anti-business mind set is bad, but the unpredictability is probably worse. Having a President who has no qualms about saying he will do one thing and doing the opposite, or passing legislation sight-unseen can only be bad for business owners who might take risks like expanding their business or hiring more staff. Of course, if you have an administration that has almost no business experience, then you really can’t expect them to understand that whole risk thing. Government jobs and tenured faculty positions aren’t exactly high-risk enterprises.
Obama does not have a clue. He has never been, nor have any of his political hacks, been part of the private economy.
Re “…. there are still people wondering why the unemployment numbers aren’t getting any better?” Some people are still wondering why the government never gave them forty acres and a mule, or why they can’t get the cash equivalent today.
Bryn nailed it. Their life experience is totally opposite of the regular folks they govern. Had we looked closer we’d have see this coming. You can fool some of the people… some of the time you can fool… Won’t get fooled again.
The only thing keeping this economy from roaring back to life is the government.Get the government out of our wallets and off our backs and we the American people will bounce back and create some serious wealth.
Well, ya see, clean, that’s the problem. Anyone who has the gumption to show up poor slackers dependent upon government for any largess from the public treasury is little less than a thief in their eyes.
Cain’t have someone havin’ more money than anyone else now, can we?
What a bunch of slugs. Banana slugs, specifically. They won’t be happy until everyone (except them, of course) is equally miserable. Kinda like your typical banana republic. Or Mexico.