We are headed for another recession. The Congressional Budget Office has issued a report where if things don’t change in Washington, the economy will have stagnant growth and continued high unemployment for 2013. One reasons for this is ObamaCare.
Cook Medical Devices Company original had plans to build 5 plants to build their medical devices but have scraped those plans. They anticipated hiring 1500 employees for those plants. The company cited the president’s demand for higher corporate taxes and the cost of ObamaCare.
The airplane engine manufacturer Pratt and Whitney has also scraped plans for hiring but may be laying off people because of ObamaCare and Obama’s announcement of future defense cuts. The defense related industries employ tens of thousands of workers who may be unemployed in the future if Obama continues with his defense cuts. This will push the unemployment rate above 8.3%. Yet the Democrats don’t seem to care about the implications of gutting the military.
The life blood of any company, big or small, is profits. As a community organizer, President Obama has never had to deal with the “bottom line.” He is either unwilling or unable to see that when you tax more, the Supreme Court agrees that ObamaCare’s fees are really taxes, it impacts upon costs for all businesses. Businesses, especially small businesses, try to stay solvent by holding cost down by not hiring people, not expanding or raising prices. Of course, it is the consumer who will suffer as a result especially the middle class.
Obama’s spend and tax strategy is a duplication of what President Roosevelt did in the 1930’s Great Depression. It didn’t work then and it will not work now.