Over 100 Wendys employees in Omaha, Nebraska are the latest victims of Obamacare. As penalties and burdens stemming from the (Un)Affordable Care Act mount for businesses and individuals across the country, young people pay a hefty price. And businesses can only guess at what is coming next.
As WOWT reports, Obamacare considers those working more than 32 hours per week as full-time. It also mandates that companies provide full health benefits. According to franchisee Gary Burdett, he cannot afford the extra cost and remain in business. He reluctantly must cut his employees' hours.
Sometimes laws have unintended consequences. However, the cutting of jobs and hours for less skilled employees, mostly young people, was easily predicted from the start. According to Aylene Senger of Heritage Foundation, Obamacare raises the cost of employing full time workers by over $3 an hour. It also creates disincentives to hire more than 49 employees, ensuring that youth unemployment remains high. A third of business owners in a survey last year blamed Obamacare as a factor preventing them from hiring new workers.
Many businesses still have little sense of what direction health care policy and reality will take as more Obamacare tentacles worm their way into the system. Cato Institute's Thomas Lambert predicts that the landmark Obamacare ruling last summer introduced even more uncertainty. While Chief Justice Roberts wrongly allowed the flawed law to stand, he also kicked out some of the pillars that would likely have paid for many of the provisions. For example, the federal government can only punish with picayune penalties those middle class individuals who pass on carrying insurance. Those were meant to be stiff and would have paid in part for Obamacare.
In essence, even after two years, no one knows how this will shake out. That is why nearly 60 percent of those surveyed still favor repeal.
This means that opportunities for young people will continue to dwindle in Omaha and around the nation. Entry level positions will grow more scarce and employers will continue to think harder about hiring full-time help.
And the government loses out here as well. As costs and burdens continue to rise, more employers will use "consultant" style help who get paid in cash and are responsible for their own taxes. Others will simply bring on help as needed "under the table." Tax collection either way becomes more problematic, if not impossible.
But it is yet another easy to predict consequence as Obamacare tightens its grip. Meanwhile, young people and others just trying to get by continue to struggle in the Obamaconomy.