Tag Archives: Small Business

Watch Ted Cruz debate Bernie Sanders on health care policy and repealing Obamacare

This debate happened on CNN earlier in the week. Thankfully, I was out traveling, so I actually had a TV to watch this in my hotel room.

Here is the full video:

It’s 90 minutes long. No commercials. This was basically a debate of similar substance to the William Lane Craig debates, where actual economic evidence was continuously produced in order to show who was telling the truth, and who was just trying to be popular by saying what people who are uneducated at economics want to hear. In short: there was a clear winner and loser in this debate, and it was clear all the way through, and was reinforced over and over every time evidence was produced. The person producing the evidence would turn his back on the camera, and return to his podium to get the evidence. That person won the debate by being grounded in reality.

Also, the questions were excellent, especially from the small business owners who were impacted by Obamacare. The moderators were biased towards Sanders, but not excessively.

For those who cannot watch, there is an article at the Daily Signal.

Full text:

In a prime-time debate on CNN this week, Sens. Bernie Sanders, I-Vt., and Ted Cruz, R-Texas, discussed “The Future of Obamacare” in America. Cruz, a leading critic of the law, used the moment to outline the law’s failures.

Here are four things Cruz said about Obamacare:

1) “Now, nobody thinks we’re done once Obamacare is repealed. Once Obamacare is repealed, we need commonsense reform that increases competition, that empowers patients, that gives you more choices, that puts you in charge of your health care, rather than empowering government bureaucrats to get in the way. And these have been commonsense ideas.”

2) “Indeed, I don’t know if the cameras can see this, but in 70 percent of the counties in America, on Obamacare exchanges, you have a choice of one or two health insurance plans, that’s it … It’s interesting. You look at this map, this also very much looks like the electoral map that elected Donald Trump. It’s really quite striking that the communities that have been hammered by this disaster of a law said enough already.”

During one of the more powerful moments in the debate, Cruz held up aHeritage Foundation chart showing viewers how many counties in the U.S. have access to only one or two insurers under Obamacare. Additionally, only 11 percent of counties have access to four or more insurance providers.

3) “Whenever you put government in charge of health care, what it means is they ration. They decide you get care and you don’t. I don’t think the government has any business telling you you’re not entitled to receive health care.”

The U.S. should not envy other health care systems, especially Canada and the United Kingdom, Cruz said. He referred to a governor from Canada who came to the U.S. specifically to have heart surgery.

4) “That’s why I think the answer is not more of Obamacare, more government control, more of what got us in this mess. Rather, the answer is empower you. Give you choices. Lower prices. Lower premiums. Lower deductibles. Empower you and put you back in charge of your health care.”

Obamacare is burdening Americans. The average deductible for a family on a bronze plan is $12,393, according to a HealthPocket analysis. According to aneHealth report, the average nationwide premium increase for individuals is 99 percent and 140 percent for families from 2013-2017.

I really recommend you watch this debate, because it these things were done on a weekly or monthly basis, then people would be able to think critically about what they are presented with from the mainstream media, Hollywood elites and liberal academics.

Trump signs executive order to eliminate job-killing regulations on small businesses

Trump signs good executive action = GOOD TRUMP
Trump signs good executive action = GOOD TRUMP

It’s Tuesday, so I guess it’s time for another executive order. Is it “Good Trump” or “Bad Trump” this time?

Yesterday, the Daily Signal reported this:

President Donald Trump signed an executive order Monday aimed at slashing regulations on American small businesses.

The order will expand regulatory review with the goal of dramatically peeling back federal regulations. The order is the Trump administration’s first step in repealing two regulations for every new regulation put forth, CNBC reports.

The measure also sets a $0 budget for new regulations in 2017, and a cap on the cost of any new regulations going forward. Once in effect, it will require federal agencies to propose any new regulatory rules to the White House for official review.

[…]By signing the order, Trump is following through on his campaign promise to put a moratorium on any new regulations when he takes office. Trump also promised to end “all unnecessary regulations” imposed on the energy industry and to “dismantle” the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act.

It’s good Trump!

Last week, there was another executive order designed to halt pending regulations.

The Washington Free Beacon reports that so far, Trump has halted $181 Billion (with a B) in regulatory costs:

In one of his first acts as president, Donald Trump effectively halted nearly $200 billion worth of regulations, according to a new analysis.

President Trump has taken aggressive action to curb regulations in his first week, promising to cut 75 percent or “maybe more,” and signing an executive order Monday to cut two regulations from the books when every new rule is introduced.

The first move came in the form of a memo to all federal agencies from Chief of Staff Reince Priebus, freezing all recently finalized and pending regulations. The American Action Forum, a center-right policy institute, found the action resulted in stopping rules that would cost the economy $181 billion.

Getting rid of regulations is important, because it frees up small businesses to put more resources on expanding and job creation. Most jobs are created by small businesses, and they are definitely complaining more lately about being overregulated.

Small businesses and regulations
Small businesses and regulations

The American Enterprise Institute explains:

Startups have been on the decline for 30 years, and I have written frequently on some of the possible reasons. One big open question: To what extent is government regulation playing a role in that decline? A blog post by Scott Shane, professor of Entrepreneurial Studies at Case Western Reserve University, offers a few data points that suggest rules and red tape could be hindering business formation. He notes, for instance, small business owners are complaining more about regulation than they have in the past — twice as much as in the 1980s, for instance. And this:

Over the past three-and-a-half decades, federal regulation has been rising, while new business creation has been falling, as the chart above indicates. Researchers at the Ewing Marion Kauffman Foundation, the Hudson Institute, the Hoover Institution and the Heritage Foundation believe the pattern is more than a coincidence. The per capita rate of new employer business creation and number of rules pages in the Federal Register — a common measure of the scope of federal regulation — correlate -0.67 over the 1977 to 2012 period. Similarly, the per capita rate of business creation and the number of pages in the Code of Federal Regulation — another frequently used estimate of government rulemaking — correlate -0.78 over the same period. (A correlation of 1.00 means that two numbers move in perfect concert.)

Correlation may not prove correlation, but it can provide a helpful lead on where to look for the problem.

Trump’s focus seems to be to get job creation started again by lifting the tax and regulatory burdens on those who create jobs. That’s a very different focus than his predecessor.

Eight years of socialism: more debt, more regulation, fewer Americans working:

Has the economy been doing well lately? When I ask Democrats that question, they often point me to the stock market. I know that the stock market has done very well in the last 8 years. But I really question which Democrat policies have been responsible for this winfall.

Certainly, policies like Obamacare, Dodd-Frank, green energy subsidies, blocking Keystone XL, creating a student loan bubble, and even loosening mortgage lending again to create another housing bubble, cannot cause any economics growth. My personal opinion is that all the growth came from adding over $10 trillion dollars to the debt – a process that started with the election of Nancy Pelosi and Harry Reid to the House and Senate majorities, respectively, in 2007.

Look at the national debt:

Gross public debt, Democrats control spending in 2007
Gross public debt, Democrats control spending starting in 2007

If you add $10 trillion to the national debt in 8 years then OF COURSE the stock prices will go up. You would look richer too if you took your credit card balance from $8,500 to $18,500. But what is behind all this consumer spending and government spending? Just trillions of dollars of new debt.

I think a better measure of how the economy is doing is to ask job creators how it is doing. For example, we can ask small businesses, since they are responsible for so much of the job creation in this economy.

Here’s an article from the Daily Signal about that.

It says:

More than five years after the end of the “Great Recession,” only 21 percent of small businesses* say they have fully recovered. During the recession, lack of sales ranked as the top problem small business faced. Taxes placed second, and “government regulations and red tape” placed third. And since 2012, at least one in five small business owners identify government regulations as their most important problem.

The reason for this is simple—small business owners directly feel the impact of federal regulation in the daily life of their businesses. The small business owner is often the main person in a business who bears the burden of complying with regulations and paperwork requirements. According to a 2010 study, small businesses spend $10,585 per employee on regulation, which amounts to 36 percent more per employee than larger companies spend.

With that as a backdrop, it is easy to see how small business owners continue to wonder why Washington just does not get it when it comes to regulation. For decades, Congress has sought to solve societal problems through mandates on business. Too many Americans without health insurance? Congress tries to solve that by requiring businesses to provide health insurance to their employees (regardless of whether or not they can afford it) or pay hefty penalties. Too many Americans unable to care for a sick relative? Congress seeks to address that by mandating that a business keep a position open three months out of every year for qualified employees, using a cumbersome reporting system.

Always entrepreneurial, with a keen focus on the bottom line, the American small business owner looks for ways to minimize the time and money spent on things other than running his or her business. Since many of these regulations wisely exempt the smallest of small businesses, some employers purposefully do not increase hiring because they do not want to have to comply with the regulatory regimes that await businesses that expand to 10, 15, and 50 or more employees.

This might be why the labor force participation rate is at a 38-year low.

CNS News explains:

A record 94,031,000 Americans were not in the American labor force last month — 261,000 more than July — and the labor force participation rate stayed stuck at 62.6 percent, a 38-year low, for a third straight month in August, the Labor Department reported on Friday, as the nation heads into the Labor Day weekend.

[…]In August, according to BLS, the nation’s civilian noninstitutional population, consisting of all people 16 or older who were not in the military or an institution, reached 251,096,000. Of those, 157,065,000 participated in the labor force by either holding a job or actively seeking one.

The 157,065,000 who participated in the labor force equaled only 62.6 percent of the 251,096,000 civilian noninstitutional population — the same as it was in July and June. Not since October 1977, when the participation rate dropped to 62.4, has the percentage been this low.

So… do you still think that the economy is in good shape? Any economy is going to look better if you take an $8.5 trillion debt and run it up to $18.5 trillion. But if you look a little closer, you see that small businesses are hard-pressed, and it’s affected the real unemployment rate.

Obama administration report: 65% of small firms face Obamacare premium hikes

From Investors Business Daily.

Excerpt:

Released into a news black hole last Friday, an official Obama administration report finds that ObamaCare will push premiums up for two-thirds of small businesses. Cross off another ObamaCare promise.

The report came from the actuary for the Centers for Medicare and Medicaid Services — which means it’s from the administration’s official ObamaCare number cruncher.

What it found was that 65% of small businesses that offer insurance will likely see their premiums rise thanks to ObamaCare. That translates into higher insurance costs for 11 million workers.

The reason? These companies generally employ younger, healthier workers and so had been paying lower-than-average rates.

But since ObamaCare bans insurance companies from considering health when setting premiums, these companies will get hit with higher costs.

“We are estimating that 65% of small firms are expected to experience increases in their premium rates,” the report said, “while the remaining 35% are anticipated to have rate reductions.”

The report doesn’t say how big these hikes will be, but we have good reason to believe the extra costs will be significant.

One study, for example, found that 63% of small employers in Wisconsin will see premiums jump 15% because of ObamaCare. A separate study found that 89% of small companies in Maine would see rate hikes of 12% on average.

Another, by consulting firm Oliver Wyman, concluded that ObamaCare would push up small group premiums nationwide 20%.

Is this how the bill was sold to us by the Obama administration and their supporters in the mainstream media?

No:

In 2009, Obama promised small businesses that his plan would “make the coverage that you’re currently providing more affordable.” Later he said it would drive small-business premiums down by 4% in its first year, and as much as 25% by 2016.

As recently as last summer, Pelosi was proclaiming that “if you’re a small business … it lowers costs,” while Waxman said the law would make “high-quality healthy insurance more affordable and more widely available for small businesses.”

Notice that nowhere — either before or after ObamaCare passed — did any Democrat say anything about two-thirds of small businesses paying more for health coverage so the lucky one-third could get rate cuts.

Next time you hear a big government liberal promising you goodies at no cost, keep in mind their record. They are making policy from emotions, not from mathematics. They believe that they are lying to you for your own good. Their goal is not to tell the truth at all. And don’t rely on the left-wing journalism crowd to hold them accountable, they flunked math too.

Obamacare causing local governments to eliminate jobs and cut back on worker hours

This is the top article on Investors Business Daily at the time of writing.

Excerpt:

[W]hile private companies are getting all this unwelcome and hostile attention, local governments across the country have been quietly doing exactly the same thing — cutting part-time hours specifically so they can skirt ObamaCare’s costly employer mandate, while complaining about the law in some of the harshest terms anyone has uttered in public.

The result is that part-time government workers — many of them low-income — face pay cuts that can top $3,000 a year, and yet will still be left without employer-provided benefits.

Here is just a small sampling of local news reports about what local government officials are saying about ObamaCare, and the steps they’re taking to avoid or minimize its costs.

[…]Dearborn, Mich.: “If we had to provide health care and other benefits to all of our employees, the burden on the city would be tremendous,” said Mayor John O’Reilly, explaining why the city is cutting its more than 700 part-time and seasonal workers down to 28 hours a week. “The city is like any private or public employer having to adjust to changes in the law.”

Indiana: “What I’m seeing across the state is school districts, unfortunately, having to reduce the hours that they are having some of their folks work, primarily so they don’t have to worry about the (ObamaCare) penalties, or they don’t have to provide them health insurance, which would be very, very costly,” said Dennis Costerison, executive director of the Indiana Association of School Business Officials. Ft. Wayne Community Schools, for example, are cutting yours for nearly three-quarters of its part-time aides.

Omaha, Neb.: “The biggest problem is everyone said that ObamaCare is only going to help cut costs. Nothing could be further from the truth,” said Mike Kennedy , who serves on the board of Millard Public Schools, just outside the city, and figures ObamaCare will raise its costs by $400,000. A neighboring school district is reducing hours for up to 281 part-time employees to avoid $2.5 million in new costs, which will result in pay cuts of up to $3,300.

Long Beach, Calif.: “We are in the same boat as many employers,” said Tom Modica, Long Beach’s director of government affairs. “We need to maintain the programs and service levels we have now.” So the city is going to cut hours for 200 part-time workers so it doesn’t have to pay $2 million to provide health benefits.

Salt Lake City, Utah: “With new provisions in the Affordable Care Act, there was going to be a significant burden upon Granite School District and our taxpayers to offset the cost of benefits,” said spokesman Ben Horsley. He says covering the district’s part-time workers would cost about $14 million, and so about 1,000 will have their hours cut to 29 a week.

[…]Virginia: “The Commonwealth of Virginia is grappling with the same issues that many businesses in the private sector are as they struggle to deal with the costs imposed by the Affordable Care Act,” Paul Logan, a spokesman for Gov. McDonnell, said. The state is requiring that about 7,000 part-time government workers put in no more than 29 hours a week.

Texas: “The Affordable Care Act has added so much complexity and administrative burden that there is nothing affordable about it,” said Jared Pope, who is consulting with Texas municipal governments on ObamaCare. Dallas expects its health costs to climb $2.1 million next year. Plano is cutting hours to avoid $1 million in new costs.

Kern County, Calif.: “It will affect multiple departments, a majority of departments,” said the county’s deputy administrative officer Eric Nisbett, explaining that unless the county cut worker hours for 800 employees, ObamaCare would cost it up to $8 million a year.

Allegheny County, Pa.: “There’s frustration and anger and sadness and resentment, you know, but you don’t have a voice,” said adjunct English professor Clint Benjamin in the wake of the Community College of Allegheny County’s decision to cut hours for about 400 adjunct faculty and other employees so it wouldn’t have to pay $6 million in ObamaCare-related fees next year.

Medina, Ohio: “We feel bad as a city administration and as a council in having to cut hours from 35 to 29,” Medina Mayor Dennis Hanwell said. “We have the budget to pay the people, but we do not have the budget to pay for the health care.” If they hadn’t made that cut, the city faced up to $1 million in new health costs courtesy of ObamaCare.

It’s not just private companies who are cutting back on hours in order to escape being forced to pay for health insurance. I think I can pretty much guarantee that no one on the left thinks about where money comes from when they are giving these speeches about how much they care about everyone and how they will give everyone free money. The truth is that if you have a job, you are paying for people who don’t have jobs so that they can have the same life that you have without having to work. That’s what progressivism means. Equality regardless of wisdom and prudence.