Business

ObamaCare: Bad for the Employment

zyxwvutsr.

Posted to Business on Wed Oct 10, 2012 at 11:56:03 AM EST (promoted from Diaries by port1080). RSS.

It is completely predictable that when the government causes something to be more expensive that we will get less of that thing.

No one with any sense should be surprised that making full-time employment more expensive will result in fewer full-time jobs.

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1

Re: ObamaCare: Bad for the Employment

joshv.

Wed Oct 10, 2012 at 01:33:57 PM EST

5.00 (liberal)

Oh come on, can't those filthy rich owners just sell a yacht or a corporate jet or something to pay for their worker's health care?

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Re: ObamaCare: Bad for the Employment

Jackkeefe.

Wed Oct 10, 2012 at 04:17:39 PM EST

5.00 (paranoid)

I assume they knew exactly how employers would respond to the AHCA.  Obamacare basically begs employers to cut full time employees or stop offering health care altogether. Obamacare is designed to cause such havoc to  the system that single payer becomes the only viable option.

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Re: ObamaCare: Bad for the Employment

novy.

Wed Oct 10, 2012 at 10:43:50 PM EST

2.00 (predictable, socialist)

I hope you turn out to be correct. Single payer works in every other First World country, and provides superior service by all accounts. It was what Clinton had in mind in 1993-94, and he was right.

Coincidentally, it would also shift health care burdens away from corporations that don't want to provide health service anyway. Oh, those evil Democrats!

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Re: ObamaCare: Bad for the Employment

joshv.

Thu Oct 11, 2012 at 02:44:56 AM EST

none

Really?  So there's a 350 million member government run single payer system somewhere else in the world?

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 08:25:49 AM EST

none

Oh, right. America has more people than France. Maybe not more than EU countries taken together, but more than France. What was your point again?

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Thu Oct 11, 2012 at 07:03:50 AM EST

5.00 (informative)

Single payer works in every other First World country, and provides superior service by all accounts
Ho ho!
"I did not sign away my right to get the best possible health care for myself when I entered politics."

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 08:24:21 AM EST

1.00 (obtuse)

I read that article you double-linked three times looking for that quote without finding it.

Really wealthy people in America probably get superior health care service to that provided to ordinary Canadians by our system, but middle class Americans have been getting screwed for quite some time now.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Thu Oct 11, 2012 at 08:48:22 AM EST

none

I read that article you double-linked three times looking for that quote without finding it
He said it nonetheless. (Dunno what you mean by "double-linked.)

...middle class Americans have been getting screwed for quite some time now
Middle class Americans have health insurance. Since President Obama promised they can keep their plans if they like them I guess you believe they will be screwed by Obamacare.

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 01:46:07 PM EST

none

Which "he"?

Except for tens of millions who don't.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Thu Oct 11, 2012 at 02:21:16 PM EST

none

The "he" the article is about. Maybe you could read it.

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 04:17:46 PM EST

1.00 (illiterate)

I did. Twice.

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Re: ObamaCare: Bad for the Employment

tjb.

Thu Oct 11, 2012 at 01:35:45 PM EST

none

but middle class Americans have been getting screwed for quite some time now.

Why would you believe that?  The vast, vast majority of Americans have quite good health insurance under the current system or are on some form of government plan (medicare for the old, CHIPS for the children, medicaid for the destitute).

Obamacare tinkers with the margins, mostly impacting low-skill, low-wage workers who skew very young under the theory that getting these young people into insurance plan will dilute the risk pool and lower prices for everyone.  The problem, as zyx has pointed out, is that an imposed insurance overhead for low-wage workers is necessarily quite large so employers will try to get out of providing insurance for these folks, mostly in ways which screw the low-wage workers (who, being mostly young, derive very little benefit from medical insurance anyways).

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 01:53:26 PM EST

none

Why count 50 million uninsured people? And why notice that even people with coverage can go bankrupt covering medical expenses?

I feel certain that Romney's "plan" would deal with preexisting conditions, because he said it would on television. (I imagine his "plan" covers preexisting conditions because he factors in that Democrats won't actually cooperate in repealing Obamacare.)

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Re: ObamaCare: Bad for the Employment

tjb.

Thu Oct 11, 2012 at 02:02:40 PM EST

none

Why ignore the 280 million insured people?

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 04:17:01 PM EST

none

America had 311 million people in 2012 (estimated). If 50 million were uninsured, 261 million were insured, not 280 million. Why ignore them? I don't. But in other countries, you won't find tens of millions of people who don't have access to health care, AND you claimed that very few people were uncovered.  

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Re: ObamaCare: Bad for the Employment

tjb.

Thu Oct 11, 2012 at 04:28:59 PM EST

none

Oh, ok, so only 83.9% of the populace is covered and a good chunk of those without coverage don't particularly need or want it (they are young & would rather spend money on other things)

When the current system is working for at least ~85% of the population I think that is pretty successful.  Not exactly a crisis that requires massive government intervention (fortunately, Obamacare really only tinkers on the edges)

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Re: ObamaCare: Bad for the Employment

Ephraim Gadsby.

Thu Oct 11, 2012 at 02:12:41 PM EST

none

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Re: ObamaCare: Bad for the Employment

novy.

Thu Oct 11, 2012 at 04:20:43 PM EST

none

Your post claims that ONLY 28.3% of bankruptcies arise from medical problems instead of ONE-HALF, and they have reasons to try to minimise this problem. You should read your links before you post them.

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Re: ObamaCare: Bad for the Employment

Ephraim Gadsby.

Thu Oct 11, 2012 at 06:53:21 PM EST

none

The 28.3% of bankruptcies from "illness or injury" is from a sample in a rather shoddy Elizabeth Warren paper widely cited by Obongocare propagandists, which you seem to have overlooked in your haste to accuse others of not being able to read. I would explain how bankruptcy from "illness or injury" is not the necessarily a bankruptcy from medical bills, but obviously doing so would be futile.

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Re: ObamaCare: Bad for the Employment

rickb928.

Wed Oct 10, 2012 at 05:58:39 PM EST

5.00 (astute)

Of course they can.  There's one year.

And then the jet, if they sold the yacht the year before.  Two years.

After that, the Vail cabin.  There's year three.  So far, so good.

But now, in the fourth year, they have to choose between the family farmstead in Connecticut or season tickets to the Knicks, the Giants, and the Yankees.  

In year five, what will they sell?  Their firstborn has already fled to greener pastures.  

Even the rich can make choices, and why not just choose to say 'no'?  

3

Re: ObamaCare: Bad for the Employment

indecentspeech.

Wed Oct 10, 2012 at 05:02:32 PM EST

5.00 (astute)

There's no evidence (mostly because the law isn't even implemented yet) in the article that states that the law is the reason for decline in full employment employees. Matter of fact it says they don't know at all again because it's NOT IMPLEMENTED YET By the way, the company already has 75% part-time employees (guess what their positions are at those restaurants... certainly not management for sure) and has been:

...has made cost cutting a priority in recent years as sales growth and traffic have stalled at its flagship chains. In the most recent fiscal quarter, the company's restaurant labor costs were 31 percent of sales. That's down from 33 percent three years ago.

Oh their labor costs are actually DOWN? You don't say.

The reduction was driven by several factors. Given the challenging job market, Darden has been able to offer lower pay rates to new hires. Bonuses for general managers have been reduced as sales have stagnated. Servers at Red Lobster are handling four tables at a time, instead of three.

Oh so they are blaming the law for something they were doing regardless? You don't say!

And last year, the company also put workers on a "tip sharing" program, meaning waiters and waitresses share their tips with other employees such as busboys and bartenders. That allows Darden to pay more workers a far lower "tip credit wage" of $2.13, rather than the federal minimum wage of $7.25 an hour.

Ah! That's being clever.

CNBC articles are cute.

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Re: ObamaCare: Bad for the Employment

thefadd.

Wed Oct 10, 2012 at 11:25:22 PM EST

none

Oh wait we're talking about a CHAIN RESTAURANT??? Zxywstr you asshole moron that doesnt count. I thouht we were talk about real jobs at a real company. lol lol lol. Fail. Doesnt count. What is it Friendly's or some shit? Now I'm definitely not RTF.

I HAD HAD SEX WITH HUNTER S THOMPSON. HE CAME IN MY MOUTH AND I SWALLOWED IT. I SHOULD HAVE HAD HIS BABY. WE WOULD BE BALLIN' LIKE KOBE'S SON!!

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Re: ObamaCare: Bad for the Employment

indecentspeech.

Tue Oct 16, 2012 at 09:42:34 AM EST

none

I like chain restaurants. Matter of fact, I enjoy Olive Garden, but my favorite chain restaurant is Red Robin.

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Re: ObamaCare: Bad for the Employment

thefadd.

Wed Oct 17, 2012 at 04:18:18 PM EST

1.00 (hidebound)

you must be fucking trolling me

I HAD HAD SEX WITH HUNTER S THOMPSON. HE CAME IN MY MOUTH AND I SWALLOWED IT. I SHOULD HAVE HAD HIS BABY. WE WOULD BE BALLIN' LIKE KOBE'S SON!!

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Re: ObamaCare: Bad for the Employment

thefadd.

Wed Oct 10, 2012 at 11:28:13 PM EST

none

Thick as a stick is funny I agree but theres nothing funny about the fact that War Child is Tull's best.

I HAD HAD SEX WITH HUNTER S THOMPSON. HE CAME IN MY MOUTH AND I SWALLOWED IT. I SHOULD HAVE HAD HIS BABY. WE WOULD BE BALLIN' LIKE KOBE'S SON!!

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Re: ObamaCare: Bad for the Employment

Anywhere.

Thu Oct 11, 2012 at 09:45:59 AM EST

3.00 (totalitarian, astute)

Great-- so when insurance costs drop because the young and healthy are forced into the pool, the types of positions that already provided health insurance (a.k.a "good jobs") will be cheaper and that kind of employment will go up.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Thu Oct 11, 2012 at 11:21:28 AM EST

none

It is magical thinking to believe that increasing the demand for a product while simultaneously mandating that it be higher quality and more highly regulated will result in lower prices.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Thu Oct 11, 2012 at 12:46:32 PM EST

1.00 (intransigent)

You don't believe lowering the average age and increasing the average health of the pool of insured will lower per-person insurance costs?

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Thu Oct 11, 2012 at 01:24:23 PM EST

none

You don't believe that raising demand, lowering supply, and increasing what is covered by insurance will raise per-person costs?

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Re: ObamaCare: Bad for the Employment

tjb.

Thu Oct 11, 2012 at 01:43:31 PM EST

5.00 (agreed)

That part will raise prices, diluting the risk pool with young people should have some lowering effect.  Which effect is larger remains to be seen (young people really don't use many medical services but will be paying premiums).

Encouraging high-deductible plans would have definitely kept demand in check, but (to me) the most retarded part of Obamacare effectively eliminated high-deductible plans.

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Re: ObamaCare: Bad for the Employment

Ephraim Gadsby.

Thu Oct 11, 2012 at 02:17:30 PM EST

5.00 (astute)

"the most retarded part of Obamacare effectively eliminated high-deductible plans."

Which makes sense if your goal isn't improving health care, but increased statism.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Thu Oct 11, 2012 at 03:00:09 PM EST

none

In this case, no, raising demand will not increase per-person costs because of the manner in which demand is being raised as tjb notes.  How is supply being lowered?

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Re: ObamaCare: Bad for the Employment

tjb.

Thu Oct 11, 2012 at 03:19:15 PM EST

none

raising demand will not increase per-person costs because of the manner in which demand is being raised

I'm no quite so unequivocal about that - both arguments are true: demand will go up, but insurance pools will be diluted by young people, but very expensive people (pre-existing conditions) will also be force-merged into the insurance pools as well.  

It isn't terribly clear to me which effect will dominate.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Thu Oct 11, 2012 at 03:33:02 PM EST

1.00 (meretricious)

It isn't clear to me, either, what the net effect will be, but I was pointing to one specific increase in demand-- young, healthy people added to the pool-- just as zyxwvutsr was pointing to one specific change with his writeup.  The result of that change is pretty straightforward to predict and concluding that adding those folks to the insurance rolls is going to increase prices is, in zyxwvutsr's words, the result of magical thinking.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Thu Oct 11, 2012 at 03:40:28 PM EST

none

And by my bolded "that", I'm referring to the forcing into the pool of young, healthy people.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Fri Oct 12, 2012 at 09:43:13 AM EST

none

In this context all that matters is that there are currently zero-cost employees who will become a cost. We're not talking about the health insurance system as a whole, but the tiny subset of the system that exists in a single workplace.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Fri Oct 12, 2012 at 09:40:32 AM EST

none

Yes, per-person costs will increase. How could it be otherwise when we're talking about covering people (mostly young, but whatever) who are zero-cost today? The average cost could come down due to adding low-risk employees to the premium pool, but the total cost will rise. (This is inevitable unless every low-risk person currently not covered uses literally no health care once they become covered. That is so dramatically unlikely that we can dismiss the idea altogether.)

We should anticipate supply constraints as a side effect of the ACA (unintended though they may be - but that just goes to show how little the Democrats understand economic reality) for a number of reasons.

  1. If you consult any basic economics text you will no doubt find a reference to shifts of the supply curve caused by the imposition of government regulations. (This is so basic, in fact, that I am more than a little surprised that you are unaware of it.) We need not try to predict the precise form of the activities that will drive that shift to know that it will occur.

  2. The types of insurance products allowed under the ACA is constrained. The most obvious example already mentioned in this discussion is the effective prohibition of high-deductible plans, but there will be many other types of coverage that will not be allowed.

  3. We are already seeing consolidation of suppliers in the health care system in response to the ACA.

  4. There is reason to expect that physicians will reduce their workload in response to the types of price controls that are inevitable if there is an attempt to control overall spending through the ACA.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Mon Oct 15, 2012 at 09:03:37 AM EST

none

Yes, per-person costs will increase. How could it be otherwise when we're talking about covering people (mostly young, but whatever) who are zero-cost today? The average cost could come down due to adding low-risk employees to the premium pool, but the total cost will rise.

In terms of employers who already pay for health insurance, all that they care about is the average or per-person* cost.  By forcing into the pool those who would opt out because they make the bet that they're young and healthy enough that it's worth the risk, you'll be lowering those average costs.  Certainly, there are other competing effects from ACA, but that is the only effect I was commenting on-- just as your writeup was specifically focused on the increased cost of hiring lower skilled workers.

As for 1-4, all fair points, but I thought you were referring to a supply reduction caused by forcing the young and healthy into the pool.  I think we were talking past each other a bit.

*Per-person in the pool, not per-person in the US population.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Mon Oct 15, 2012 at 09:25:52 AM EST

none

In terms of employers who already pay for health insurance, all that they care about is the average or per-person* cost
That's ridiculous. Total cost if far more important.

Suppose 10% of my eligible workforce ops out of health insurance coverage currently. Under ACA my covered workforce will increase 11%. You are assuming that the average cost will decrease because much of the 10% who opt out are healthy - that's a fine assumption to make even though you don't know by how much the average premium will decrease,* but it is impossible for the total cost to decrease.

* It also assumes away the other provisions of ACA that will cause premiums to rise which will give even more incentive to employers to reduce the size of the full-time workforce.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Mon Oct 15, 2012 at 10:09:59 AM EST

none

You're right.  I was assuming that if an employer offers coverage, employees take it.  So, to correct my statement: the net effect will be a decrease if the per-person cost is reduced a greater percentage than the percentage increase in employees taking the coverage.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Mon Oct 15, 2012 at 11:28:42 AM EST

none

And that's not possible.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Mon Oct 15, 2012 at 11:59:16 AM EST

none

Sure it is.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Mon Oct 15, 2012 at 03:49:03 PM EST

none

More magical thinking.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Tue Oct 16, 2012 at 09:50:04 AM EST

none

"Zyxwvutsr doesn't understand" is not the same as "magical thinking".

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Tue Oct 16, 2012 at 09:50:37 AM EST

none

Then explain how total cost could possibly go down.

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Re: ObamaCare: Bad for the Employment

Anywhere.

Tue Oct 16, 2012 at 10:07:46 AM EST

none

The pool that affects the per-person price is not the same as the pool that affects the employer's total cost.  If participation in the employer's plan was sufficiently high prior to ACA, the percentage decrease in per-person cost could be higher than the percentage increase in people participating in the plan.

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Re: ObamaCare: Bad for the Employment

zyxwvutsr.

Tue Oct 16, 2012 at 10:27:10 AM EST

none

What comprises the new pool?

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Re: ObamaCare: Bad for the Employment

Ephraim Gadsby.

Thu Oct 11, 2012 at 02:09:28 PM EST

none

Obongocare imposes a variety of mandates and prohibits caps on insurance payouts. Note the effect on the price of insurance that only covers the young and healthy.

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Re: ObamaCare: Bad for the Employment

Haggis.

Thu Oct 11, 2012 at 01:14:05 PM EST

5.00 (funny)

Obamacare doesn't cover removal of bowel obstructions.  Thus, Tea Partiers can continue to march with their heads fitting snuggly up their poopholes.

I am shitfitter; hear me roar.

49

ObamaCare: making the upgrades happen

Ephraim Gadsby.

Tue Oct 16, 2012 at 11:50:01 AM EST

none

Maybe Obamacare is premised on the notion laughter is the best medicine:

Nearly $1 billion in payments to hospitals over the next year will be based in part on patient satisfaction, determined by a 27-question government survey administered to patients. Hospitals with high scores will get a bonus payment. Those with low ones will lose money.

The program is part of a much broader pay-for-performance system built into President Barack Obama's health-care overhaul. "I don't know anybody in my field who isn't totally preoccupied with it," said John M. Haupert, Grady's chief executive...East Orange General Hospital has begun upgrading its televisions to flat screens to lift its scores. Other facilities are going so far as to put mini waterfalls in patients' rooms and adding daily newspaper delivery, Mr. Studer, the health consultant, said.

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Re: ObamaCare: making the upgrades happen

thefadd.

Wed Oct 17, 2012 at 04:23:17 PM EST

none

That is as retarded as Bush's "no child left behind."

I HAD HAD SEX WITH HUNTER S THOMPSON. HE CAME IN MY MOUTH AND I SWALLOWED IT. I SHOULD HAVE HAD HIS BABY. WE WOULD BE BALLIN' LIKE KOBE'S SON!!

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Re: ObamaCare: making the upgrades happen

Ephraim Gadsby.

Wed Oct 17, 2012 at 04:37:05 PM EST

none

Coming soon: No child left without a mini waterfall.

53

Related

Ephraim Gadsby.

Wed Oct 17, 2012 at 04:59:11 PM EST

none

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^ 53

Re: Related

zyxwvutsr.

Thu Oct 18, 2012 at 06:47:56 AM EST

none

From the first link:

Twenty states will lose the equivalent of 300 full-time employees' worth of work to filling out ACA regulatory red tape.
He seems not to notice that the liberals see that as a good thing. Filling out forms is cleaner work than digging holes and then filling them back in. (Besides, a good many of those workers will end up being members of a municipal employees' unions.)

From the second link:

Legislative debate over the law didn't go into great detail about these provisions.
Heh: No kidding. That line works in any context of the ACA.

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Re: Related

Ephraim Gadsby.

Thu Oct 18, 2012 at 11:53:24 AM EST

none

Also, I don't think they factored in mini waterfalls expenditures.

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