March 19, 2010

Passing Obamacare Will Cost American Jobs

That is the only honest takeaway you can have reading this article from Chicago Breaking Business News:

Caterpillar Inc. said the health-care overhaul legislation being considered by the U.S. House of Representatives would increase the company's health-care costs by more than $100 million in the first year alone.

In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan "because of the substantial cost burdens it would place on our shareholders, employees and retirees."

Caterpillar, the world's largest construction machinery manufacturer by sales, said it's particularly opposed to provisions in the bill that would expand Medicare taxes and mandate insurance coverage. The legislation would require nearly all companies to provide health insurance for their employees or face large fines.

The Peoria-based company said these provisions would increase its insurance costs by at least 20 percent, or more than $100 million, just in the first year of the health-care overhaul program.

"We can ill-afford cost increases that place us at a disadvantage versus our global competitors," said the letter signed by Gregory Folley, vice president and chief human resources officer of Caterpillar. "We are disappointed that efforts at reform have not addressed the cost concerns we've raised throughout the year."

Business executives have long complained that the options offered for covering 32 million uninsured Americans would result in higher insurance costs for those employers that already provide coverage. Opponents have stepped up their attacks in recent days as the House moves closer toward a vote on the Senate version of the health-care legislation.

If Obama passes:

  • Companies that already pay health insurance will have to pay higher rates, meaning less profitability, higher costs, and fewer jobs
  • Companies that don't currently pay health insurance will have to pay high health insurance rates, meaning less profitability, higher costs, and fewer jobs.
  • Companies that cannot withstand the high costs of forced health care will simply shut down.

In all three situations, job loss—or at least the absence of job creation—is a certainty.

If Democrats really want to save or create jobs they'll vote against Obamacare.

Posted by Confederate Yankee at March 19, 2010 11:27 AM

It will cost "private sector" jobs.

But add lots of "government sector" jobs. Just at the Federal level, over 100 new agencies! Thousands more IRS agents, too, with more powers than ever. Think dealing with an insurance claim is hard now?

Who knows how many State and local employees?

Posted by: John A at March 19, 2010 02:35 PM

"So what?" - Barrack Obama.

Posted by: SouthernRoots at March 19, 2010 08:44 PM