Obamacare tramples on job creation, new poll finds
Businesses are refusing to hire new staff due to the impending implications of Barack Obama's healthcare reform
America's Affordable Care Act (ACA), nicknamed 'Obamacare' after President Barack Obama, is already hurting the U.S. job market, well before the legislation is even implemented.
A new Gallup poll of 603 business owners have highlighted a remarkable statistic - that 41 percent of them have frozen new hiring in the face of Obama's ideologically motivated healthcare project.
CNBC reports that small business owners' fear of the effect of the new healthcare reform law on their bottom line is prompting many to hold off on hiring, and even to shed jobs in some cases.
"We were startled because we know that employers were concerned about the Affordable Care Act and the effects it would have on their business, but we didn't realise the extent [to which] they were concerned, or that the businesses were being proactive to make sure the effects of the ACA actually were minimised," said attorney Steven Friedman of Littler Mendelson. His firm, which specialises in employment law, commissioned the Gallup poll.
"If the small businesses' fears are reasonable, then it could mean that the small business sector grows slower than what economic conditions otherwise would indicate. And small businesses have been a growth engine in the economy," Friedman told CNBC.
Almost one-fifth (19 percent) of respondents answered "yes" when asked if they had "reduced the number of employees you have in your business as a specific result of the Affordable Care Act."
Thirty-eight percent of the small business owners said they "have pulled back on their plans to grow their business" because of Obamacare.
Under Obamacare, nearly all companies with 50 or more full-time employees will have to either offer health coverage or face a fine of $2,000 per full-timer after the first 30 workers.
Gallup's Chief Economist Dennis Jacobe said small business owners' answers in the poll "is consistent with owners' tendency to be more Republican than Democratic, higher-income, more against big government, more conservative and less optimistic than Americans overall."
We are wholly dependent on the kindness of our readers for our continued work. We thank you in advance for any support you can offer.