Obama’s economy and his health care plan come together in the restaurant business

On Monday, I noted that ObamaCare regulations requiring employers to provide full (really full) insurance coverage to all employees may make running restaurants, which have a famously low profit margin, so prohibitively expensive that many will go out of business.

It turns out that we needn’t fear this eventuality, because we’re about to see a perfect confluence of two Obama policies.  Restaurants can avoid the costs of ObamaCare by hiring only part-time employees.  This is so because ObamaCare says that employers don’t have to provide health insurance for part-time employees.  The down side of this is that the poor, part-time employees will have to provide their own insurance (or pay a penalty), not to mention struggling to pay for food and housing on a part-time salary.  Or will they?

As you might have noticed, the economy has not improved measurably under Obama.  Indeed, thanks to Obamanomics, college graduates are barely getting by:

In California, it’s long been the joke that prospective actresses come to the state to become waitresses. Now, thanks to the Democrat-created economy, so do college graduates. The newest census shows that between 2006 and 2011, the number of college graduates working as waiters doubled. Approximately 260,000 California college graduates below the age of 30 worked in low-level menial jobs in 2011, an increase of 60,000 over 2006.

And there you have it:  the Obama economy provides ready-made part-time employees for a restaurant that can no longer afford full-time employees.  Even better, these part-timers will live in their parents’ basements and, until they’re 26, get their insurance from their parents’ employers.  Right now, we won’t worry about what happens when their parents’ employers can no longer bear the cost of providing for their own full-time employees, plus an increasing number of Obamanomics-created dependents.

What we’re seeing is the perfect symmetry of an imploding Leftist-managed economy.

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Comments

  1. says

    Note also the these college graduates are now mostly carrying the burden of heavy college loan repayments. Much of the money went to fund avaricious college presidents, swarms of unneeded administrators, buildings which serve as monuments to egos, and professors of dubious disciplines.

  2. michal says

    I live in Israel and it’s a little bitty Nanny state.
    I’ve complained / explained that the gov’t here has a deep hand in the pockets of salaried employees.
    About 10 years ago, something started to change here.
    More and more people are hired by man power or human resource services for long term employment.
    What happens is the manpower company provides the staff and they have the responsibility of providing all the social benefits: pension, health care, transport, clothes.  I don’t know how it’s written into the tax law, but there is something about the way they work, that none of the people that work for them are permanent employees. Maybe tenured is better word.
    The upshot is the worker gets his car, clothes/uniform, vacation/sick/maternity leave from the manpower people.  The employer pays the MP people, but none of the taxes, pensions, etc. they don’t have to deal with unions, which had a lot of clout here until about 10years ago.
    It has its pros and cons. Pay is lower. You avoid unions. But there is more job satisfaction. And more mobility. If you don’t get along somewhere, they can take you out and put you  in another branch or store  in another area without it becoming workplace political.
    The gov’t even does it. Several of my in=laws work under these conditions.
    I just wonder if something like this is going to happen in the US in the service industries to avoid paying OBangercare and high taxes and meeting union demands.
    Thoughts?

  3. Charles Martel says

    Speaking of useless college administrators… Two miles from my house is College of Marin, a two-year school that has some brilliant teachers but over the years has grown top-heavy with degreed parasites (“administrators”) in charge of this and that useless activity.
     
    At the end of the street the college is located on is “Taqueria de Marin,” a neat little fast-food Mexican joint that’s been run by two Salvadorean brothers for years and years. Most customers are on a first-name basis with the brothers, who sell tasty, freshly made food at a reasonable price. The taqueria is one of those wonderful background amenities to life in Marin.
     
    But no more. The college “needs” to build a new office building on the taqueria’s site to accommodate a slop over of its bloated bureaucracy. Once more a revenue-producing small business that serves a loyal customer base will be sacrificed so that a bunch of certificated white and affirmative-action black tapeworms can pretend to be adding something to our quality of life.
     
    Meh.

  4. drk says

    Michal –

    Maybe I am missing something but if the Israeli model were to be adopted here in the U.S., wouldn’t the manpower companies also be saddled with either paying for increasingly expensive health insurance or the Obamacare fines if they don’t provide insurance?  I don’t see what their advantage is.  
     
    And we do have manpower / “consulting” companies here that sound a lot like what you are describing – not sure what the difference is.  

    Deana 

  5. michal says

    may be that it’s a loop hole in the tax Israeli system.
    Outsourcing manpower is one way to get around the burden of pensions and unions.
    I know that similar companies exist in the US. I think of them as temporary workers.  I think that the people here are working on a month to month contract and hence don’t accrue tenure.
    They do offer some kind of pension for you to pay into, though.
    Health care here is universal and taken out of the pay check, like social security.
    Just wondering if this could work in the US. Have your cake, eat it too, and screw the Feds.

  6. says

    Slavery is always closer than Americans believe. Blacks were told many times that the institution of slavery still existed. They were not told the whole truth.They thought Abraham Lincoln was a Democrat and that the institution of slavery existed with the Bible Belt, Southern States, Democrats, and conservatives. In truth, the institution of slavery continues to exist, but only because the Democrats kept it up for the past few centuries.

     What better way to convince your political enemies that slavery doesn’t exist, than to accuse them of what they know isn’t true? Except, that it was only ever true of the Left.

  7. Mike Devx says

    Charles Martel #4…

    Charles, you just don’t get it.  These Salvadorans may be Latino, but they’ve been successful for twenty years.  Hence, they are not victims, they do have the victim mentality.  Therefore, they cannot be trusted to be a reliable Democrat vote within the Machine.

    Worse yet, they actually own their own business!  That makes them a couple of Uncle Tomases.  We can’t allow Latino successes unless they are directly caused (allowed) by gifts from the Democrat machine.  Independent, free Latino success might give other Latinos ideas.  Ideas about pride, and self-sufficiency; independence and escaping the Democrat plantation.  That would threaten the control and power of the overlords.  Can’t have that!  

    Besides, a whole bunch of university people obviously walked on government sidewalks and paid government money to those brothers, so THEY DIDN’T BUILD THAT!
     

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