By now I’m sure you’ve heard that Obama thinks the private sector is doing fine. But he said something else a couple days later that was just as bad. He was asked about a small business owner who said Obamacare was hurting his business. Obama’s response is to dismiss the claim and say that his healthcare law only affects insurance companies. See below.
Business Owner: Obamacare is hurting my business.
Obama: You only think that because you’re stupid.)
This is an example of the fundamental problem with liberals: they are incapable of seeing secondary consequences. Obama looks at Obamacare and sees that it only directly affects insurance companies, therefore, it only affects insurance companies. But if that’s the case, then why do half of small business owners cite the law as the reason they aren’t hiring? 74% cite the law as an impediment to job creation. And with many of the business mandates kicking in at 50 employees, that provides a clear disincentive to hiring Regulations always disproportionately hurt small businesses because they don’t have the huge legal departments to maneuver through them. I guess, according to Obama, 74% of small business owners are racist partisan hacks that lie to gallup just to hurt him.
And healthcare costs have skyrocketed since Obamacare was passed. Costs increased 9% in 2011 alone. If healthcare costs are increasing and you pass a law requiring businesses to provide health insurance to their employees, you would have to be a complete idiot to pretend like the law isn’t affecting small businesses.
Liberals’ inability to see secondary consequences is also one of the keys to Obama’s “doing fine” stuff. He thinks all we need is more public sector jobs. If we hire more public employees, that’s all Obama would see. Let’s say we spend $100m and get 1,000 public employees. Liberals see those 1,000 jobs, but they don’t see the consequences of taking that $100m out of the private economy, which would have been allocated much more efficiently and the jobs created would have been self-sustaining, unlike public sector jobs. They don’t see the consequences of the additional $100m in debt – the threat of future tax increases, higher interest payments which means even more tax increases, the increased likelihood of another credit downgrade, which feeds back into the vicious debt and tax increase cycle, etc. etc.
That’s the basic fallacy of the stimulus. Liberals saw the small amount of jobs that were directly created because of the stimulus (about $540,000 to $4.1m per job), but they didn’t see the negative effects that were secondary results and far outweighed the positive effects.