The Myth That Businesses Don't Hire Because of ObamaCare or Obama Might Raise Taxes

Discussion in 'Politics' started by IndependntLogic, Mar 8, 2012.

  1. IndependntLogic
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    IndependntLogic Senior Member

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    "Small and big businesses aren't hiring because of ObamaCare and / or because Obama is so anti-business, they're concerned he'll raise taxes!"
    I've seen this foolish propaganda posted by Joe Average on several internet boards, in the comments sections of the Wall Street Journal and CNN and so on. Lord only knows who came up with this nonsense.
    Obviously, whoever it was counted on an audience with two qualities:
    1. They never owned or ran a small to medium sized business and
    2. They never had division level or greater management experience in a large company.
    Small Business
    If a small business like mine experiences an increase in demand for their products or services, we have to react. If that means hiring more people, so be it. The key advantages of small business are speed and flexibility. If they do not capitalize on market conditions and opportunities, they won't remain in business long.
    Additionally, small businesses can realize an immediate increase in revenues of ten to up one thousand percent. Remember, many small businesses realize gross revenues of less than one hundred thousand a year. A sudden surge in demand and in some cases, a single order can launch a small company to the next level.
    So the idea that a business owner wouldn't hire the people needed to meet that demand because of a health bill that doesn't even take effect for years, is preposterous. The same goes with a tax increase that may never take place.
    Big Business
    Big businesses aren't as flexible or nimble as their smaller counterparts but the concept that a large business wouldn't hire to meet demand and increase profits is just as absurd. Managers are responsible for the profitability of their group or division. Executives are responsible to the board and / or shareholders at the quarterly meeting.
    If a surge in demand occurs that could net the company millions or hundreds of millions, Executives and managers don't fail to meet the demand because of a few thousand dollars in benefits or a tax increase that may or may not ever occur.
    For example, Motorola has been hiring at all levels for over a year. Why? The introduction of their answer to the IPhone (the Droid) exceeded all expectations. There was zero chance that the executives of Motorola would have gone to the shareholders and said "Well, we decided not to make the hundreds of millions of dollars in increased profits, because some day years from now, there might be an increase in one part of the benefits package we offer employees or maybe Obama might raise taxes some day."


    Other examples of companies that have been aggressively hiring to meet demand are Macy's, United Health Care, Lockheed, Avis and Aflac. Demand has increased. They have hired to meet that demand. That's just business basics.

    Personally, I consider ObamaCare a disaster and one of his biggest mistakes. To me, the bill is 1,800 pages of pure garbage and four pages of good ideas (eliminating pre-existing conditions, covering kids through college). But it has absolutely no impact on my hiring decisions or those of other executives. We view ObamaCare and taxes exactly the same way. If we can realize a gain in profits, we'll figure out how to deal with the other factors. That's why we're in charge. If we can't, then we shouldn't be in charge
     
    Last edited: Mar 8, 2012
  2. peach174
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    peach174 Gold Member Gold Supporting Member Supporting Member

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    The Businesses That I am hearing about say it is because they are not able to see any long term goals by this administration.
    The 2013 Budget that Obama put out is short term outlooks and they say they can't hire because there is no long term stability.
     
  3. IndependntLogic
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    IndependntLogic Senior Member

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    Businesses don't determine their actions because of a lack of direction by politicians - at least not businesses that survive. Like the Motorola example in the post.
     
  4. LogikAndReazon
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    LogikAndReazon Gold Member

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    indeed................

    uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

    liberal, utopian, clueless "businesspeople" that is..............
     
  5. GHook93
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    GHook93 Aristotle

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    Indpendent View! LOL, about as independent as a kitten in the jungle! Businesses large and small have to weight costs vs review. All worker's salaries are costs, but then they have to tax into other costs like healthcare (which is skyrocketing I might add) and other benefits. Obaminationcare is adding to that cost! If the costs (and risks) outweight the revenue, then the cost is eliminated!
     
  6. Syphon
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    Syphon BANNED

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    big business.... maybe. small businesses not so much.
     
  7. IndependntLogic
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    IndependntLogic Senior Member

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    Instead of just parroting the typical soundbites, you might consider driectly addressing points made in the OP. Foreign concept, I know but you may want to give it a try anway...
     
    Last edited: Mar 8, 2012
  8. IndependntLogic
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    IndependntLogic Senior Member

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    From the OP:

    "For example, Motorola has been hiring at all levels for over a year. Why? The introduction of their answer to the IPhone (the Droid) exceeded all expectations. There was zero chance that the executives of Motorola would have gone to the shareholders and said "Well, we decided not to make the hundreds of millions of dollars in increased profits, because some day years from now, there might be an increase in one part of the benefits package we offer employees or maybe Obama might raise taxes some day."

    Personally, I consider ObamaCare a disaster and one of his biggest mistakes."

    You might consider reading the OP before responding next time.

    Oh and btw, the words you are looking for is "weigh" and "outweigh". Glad I could help! :eusa_angel:
     
  9. chikenwing
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    chikenwing Guest

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    Really!!! its even more important to a small business!! Fees, regulatory costs,taxes insurance costs are on the rise and effect companies of all sizes all the time.
     
  10. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    Well, it's not like they are trying to make money. Oh wait..
     

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