GOVERNMENT ACTIONS ARE A SURE REASON WHY THE ECONOMY WILL NOT RECOVER THIS YEAR OR 2010 OR UNTIL SMALL BUSINESS IS INCENTIVIZED

Every week, some government bureaucrat appears on a TV show snippet and predicts that we are on a recovery...we are out of the recession, or the depression, etc..

There are no real reasons provided for this optimistic prediction other than usually some reference to some daily rumor about there being a sale at Macy's or some such, and therefore more people were seen shopping that weekend.

On a recent shopping trip I noticed that retailers were posting their job openings right on their doors, rather than in the help wanted section of the papers. The retailers said that they were saving money and that they had plenty of takers without doing more advertising. No wonder newspapers are complaining about smaller revenues.

Every job posting was for a part-time position, and it was seasonal, or temporary!

Nothing represented a long term job created or saved. It was make do work that was not to last and would not represent real employment.

Think about it...if you were an employer, what government action that was announced to date, would cause you to hire more or new employees permanently?

What government action would you credit with wanting to provide your new hired employees with health benefits for instance? The threat of fines, and added 8% health care costs to be paid by the employers are looming, and therefore why would an employer consider hiring more people?

As an aside, we looked at the reality of what an 8% TAX on payrolls for the purposes of health care would do to a typical employer. Surprisingly, it would be clear that ALL employees would be dumped into the public pool.

Let's use some simple estimates to demonstrate why ALL employees would be dumped into the "public option" pool; the government plan.

take for example a person earning a hypothetical $10 an hour, gross wages and working 40 hours a week. That would represent a wage cost of $400 a week.

Under that scenario, the employer would be charged 8% of that payroll cost, or $32 for the week for the health care tax. That translates to $140.80 a month (4.4 weeks), and is the alternative to the employer provided health care.

THERE WILL BE A STAMPEDE TO GET THIS PROGRAM, there will be absolutely no chance of a private company providing this "health-care" at this cost, thus everyone now working anyplace will be shifted into the government option by EVERY employer!

Wow, what a deal...health care for $140 a month!

Unknowingly, the government does not even realize that ALL employers will opt for this option since it is cheaper, way cheaper than anything that can be purchased in the FREE market health insurance industry.

However, keep in mind that to those employers who now do not provide the insurance coverage and MUST then pay the tax to cover their employees, they will certainly offset this cost though either layoffs equal to at least 8% of the workforce or some other means...so what has just happened?

Employers do not want to add employees, and those that have them and do not have insurance will first reduce them by the amount of the added tax for health care.

ANOTHER SMART MOVE BY THE GOVERNMENT....OH, AND SINCE EVERYONE WILL BE SHIFTED TO THE GOVERNMENT OPTION, AND THAT OPTION WILL PAY medicare rates to the medical community, expect about half of the hospitals to close, or not take the patients....
Canada fro our health care?

Dream on....another great idea from our elected officials.