Corporations and Obamacare
I suspect that Obamacare was seen by corporations as another opportunity to get rid of legacy employee benefits such as pensions and health insurance, or at least pass more of the costs to employees. Companies didn't raise many objections when Obamacare was proposed then rapidly passed by Congress. That is telling in itself.
Over the years corporations operating in the US have complained that their cost structure is too high, relative to overseas costs. Benefits such as pensions and health insurance were cited as examples of costs that they don't have anywhere else. Corporations stated that if they could reduce or eliminate these costs, they would be more competitive globally.
Since 1990 most corporations have eliminated pension plans. The only employers that offer pensions are mostly government entities. Obamacare will be the excuse to first raise employee share of health care benefits, then eliminate the benefit completely. At that point, americans will have to decide whether to adopt national health care and pay for it with higher taxes or let employees pay for 100% of their health care benefits. It isn't difficult to guess what americans will do.
Wages have not increased for most workers in the US for decades. Since pensions and health insurance have historically been part of total compensation, a loss of these benefits is in fact a wage decrease. When americans press lawmakers for universal, national health care it will require higher taxes to pay for it. This will result in significantly lower disposable income for most people.
Imagine your take home pay decreasing from $3200 per month to $2200 per month and you'll get an idea what the average american will be experiencing over the next few years. You might be able to pay for housing, food and transportation but that's it. No consumer economy for you, or the US economy.
Will this make corporations operating in the US competitive in the global market, boosting jobs and income? Probably not unless a host of government regulations are repealed and set aside. Unions and special interests will fight this to the end, leaving the US an uncompetitive island in a sea of corporate hegemony.
Eventually you abandon the house in the suburbs, the car and get the tiny apartment in the megalopolis so you can walk to work with the lunchbox in your shabby clothes. Maybe you'll be one of the lucky ones with the corporation housing, uniform and cafeteria then every week you'll get a receipt and a debit card with a few dollars on it to get something special at the company store.
Expect benefits enrollment to be painful this year, with big increases in health insurance employee withholding. And expect to get less for more from the policy. If you had a Cadillac policy, expect a Malibu policy. If you want an economy policy, it might not be available due to Obamacare minimum coverage mandates.
Over the years corporations operating in the US have complained that their cost structure is too high, relative to overseas costs. Benefits such as pensions and health insurance were cited as examples of costs that they don't have anywhere else. Corporations stated that if they could reduce or eliminate these costs, they would be more competitive globally.
Since 1990 most corporations have eliminated pension plans. The only employers that offer pensions are mostly government entities. Obamacare will be the excuse to first raise employee share of health care benefits, then eliminate the benefit completely. At that point, americans will have to decide whether to adopt national health care and pay for it with higher taxes or let employees pay for 100% of their health care benefits. It isn't difficult to guess what americans will do.
Wages have not increased for most workers in the US for decades. Since pensions and health insurance have historically been part of total compensation, a loss of these benefits is in fact a wage decrease. When americans press lawmakers for universal, national health care it will require higher taxes to pay for it. This will result in significantly lower disposable income for most people.
Imagine your take home pay decreasing from $3200 per month to $2200 per month and you'll get an idea what the average american will be experiencing over the next few years. You might be able to pay for housing, food and transportation but that's it. No consumer economy for you, or the US economy.
Will this make corporations operating in the US competitive in the global market, boosting jobs and income? Probably not unless a host of government regulations are repealed and set aside. Unions and special interests will fight this to the end, leaving the US an uncompetitive island in a sea of corporate hegemony.
Eventually you abandon the house in the suburbs, the car and get the tiny apartment in the megalopolis so you can walk to work with the lunchbox in your shabby clothes. Maybe you'll be one of the lucky ones with the corporation housing, uniform and cafeteria then every week you'll get a receipt and a debit card with a few dollars on it to get something special at the company store.
Expect benefits enrollment to be painful this year, with big increases in health insurance employee withholding. And expect to get less for more from the policy. If you had a Cadillac policy, expect a Malibu policy. If you want an economy policy, it might not be available due to Obamacare minimum coverage mandates.
posted by lugh lampfhota at 10:26 AM
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