Peter Adler: Obamacare smothering business?

September 28, 2013 

Smothering workers

In a Sept. 20 Point of View piece, Robert Luddy denounced Obamacare for “smothering business” by citing the requirement that small businesses like Forever 21 provide health care insurance to its employees or face a fine.

The “burden” he cited was the cost of $1 million to provide this care to a company he described as making $4 billion annually. That comes to a cost of 25/100 of 1 percent of sales – petty cash by any reasonable definition. To avoid this unbearable cost the company was threatening to reduce all workers hours to 29.5 each week in order to avoid the mandate to provide coverage. Really?

Is Obamacare “smothering business” or does it attempt to stop businesses like Forever 21 from smothering its employees by refusing to provide basic health protection in order to gain such a small profit advantage over its more concerned competitors? Isn’t this an example of how we come by the growing economic divide between the top 10 percent and the rest of us, which should be of real concern today?

Peter Adler


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