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The number one problem our economy facing today is jobs. Unemployment rates, and even more importantly under-employment rates are still very high. Worst is that the official numbers are incorrect and grossly underestimate the gravity of these issues. Lots of people have already given up looking for jobs after trying for years. Many are dropped out of unemployment benefits because they reached the maxed or bureaucrats found a way to get rid of them. Few experts have doubts that these kind of problems are caused by too much disruption in free markets caused by incredible interference from governments. Taxes, tariffs, duties, fees, regulations and extensive paper work, all kill jobs.
You may or may not like Obamacare. But, if you have your eyes open, this fact must be crystal clear to your eyes: Obamacare increases the cost of hiring people, especially for medium sized businesses which are critically important in keeping unemployment low. It creates this very damaging effect in many ways:
1. Medium sized employers will now have to pay for the health insurance of their full time employees. So, they may not just hire more people, convert full time positions into part time or even fire the people.
2. There is lot of paper work and reporting requirements attached to the compliance of law, increasing cost even more and reducing hiring incentive.
3. New taxes posed on healthcare businesses like equipment manufacturers and even tanning salons will increase the cost of healthcare related services and reduce hiring incentives.
4. Insurance companies in the midst of increased demand for health insurance and due to the fact that businesses and individuals must buy health insurance, now, are gearing up the prices.
5. More power in the hands of bureaucrats means more corruption, more cost and less hiring.
6. Compliance with new minimum requirements for health insurance coverage means costly insurance. It means more cost for insurance providing employers and less hiring.
People, especially unemployed and under-employed are losing. So, are the businesses, especially medium sized. Who is gaining and benefiting then? Of course, government with more controlling powers and tax revenues, and big corporations because more medium sized businesses will be cut out of competition. I know, under current circumstances, not having health insurance is a huge disaster. But, the key question is: Is it even worse than not having a job, at all? How can we be so selfish? All we care about is to provide health insurance to some people while others cannot even get a job and put food on the table for their kids.
Two wrongs do not make one right. We must figure out a way to provide a healthy life and living for all of our citizens. But, it must not be at the cost of others. I believe you will agree that having a job is far more important than having health insurance. Although having both jobs and health insurance would be the best thing. If ask jobless or under employed people, for the most part, having food on table would be far more important than having health insurance. Ideal always looks best. But, it doesn’t come free.
Unfortunately, these type of conflicts are not uncommon in the contemporary liberal world, we live in. The well-off liberals, sitting and sipping in their comfortable and luxurious rooms, often turn away from the most needy and most vulnerable. They want to guarantee health insurance, still not for everyone, even at this skyrocketing cost. But, they do not care about the ones who do not even have jobs or are getting grossly underpaid. Another good example of these barbarian conflicts is minimum wage. There is absolutely no doubt that everyone must be able to earn a decent wage.
Good and comfortable life and living is everyone’s right and dream. We must figure out a way to provide everyone a decent life. But, it must not come at the cost of others. If you can call yourself the champion of moral high grounds by guaranteeing minimum wage to some people while many others loose or cannot even get a job, to me, you are just a monster. None of the liberals has never been able to provide me satisfactory answers to this question: If minimum wage is so good and so important then why not have a minimum wage of say 400 dollars per hour?
They usually say, oh that will be way too much and unrealistic? Of course, it is a question of too much and being unrealistic. But, if good can be achieved by a law then why not go all the way? Problem is, if these things were achievable through laws then we would have gotten rid of all our problems long time ago. Take the examples of low wage countries which are doing well. For example, China. If China passes a law which guarantees same or better wage levels then North America or Europe, most Chinese will be out of jobs in no time.
It will guarantee a decent minimum wage to those who would still have jobs. But, what about tens of millions of others who will have no jobs because all the foreign companies doing offshore manufacturing there will roll back their ventures, right away. Even many Chinese companies will a find safe haven somewhere else. You can also add India and other countries to this list. I believe, though, the Chinese and Indians are not stupid enough to even demand such a law.
My dear friends, economic and financial prosperity has never been achieved by governments and their laws. It is always achieved by economic and financial freedom and a system which guarantees it. Capitalism, for example which created the world’s richest and largest economy within two hundred years, an achievement which has no parallel in human history. Capitalism did similar miracles in North America, Europe and Asian tigers. Flip over a few pages of history. You will find out that our bad days started when we began to turn away from this most successful economic system, ever. It is since when Teddy Roosevelt announced a war against Capitalism.
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