Capitalism 101–why profits are important and why government mandates against profits are bad news …
And why when government tells you how you must spend your money a certain, the unintended consequences are usually terrible:
Look, this isn’t rocket science, and the business owner in this video explains very well what happens when government dictates how you will spend any profits you make. Take a moment and listen to what he has to say near the end of the vid especially. He talks hard numbers and why, if forced to do what the government dictates, it will cost future jobs.
One of the things I’ve always said throughout this health care debate is health insurance should be something someone buys outside of employment. If Congress would deregulate the industry to the point that buyers were able to shop across state lines for a competitive insurance policy to cover their family and be a part of a huge nation wide pool to boot, prices for insurance would come down.
What is being mandated here puts no pressure on insurance companies to be competitive but it does require companies who are presently unable to provide it to do so. That will have an impact in employment. Owners like the one featured here will figure the cost per employee and most likely reduce the employee pool at a point where he thinks he can manage the mandate and still make a profit.
Of course he most likely won’t make the profit he was and so more restaurants won’t be built and more people won’t be hired.
The solution for lower cost health insurance does not lie in more government control or mandates. It is to be found in a real market that allows buyers the leverage they need to force health care insurance providers to field a competitive product. Until that happens, none of the solutions tendered through ObamaCare will increase coverage and decrease cost. It is an absolute impossibility the way that law is structured.