Simple math and basic economics | Pineandlakes.com - Pineandlakes Echo Journal

  • Comment

Simple math and basic economics

Posted: February 11, 2014 - 6:30pm  |  Updated: February 12, 2014 - 5:21pm

What we have seen with Democrats in Washington and the DFL in St. Paul is that they don’t understand simple math and basic economics.

Obamacare — government spending billions for a few without access to health insurance. Many who chose before not to have insurance were already eligible/were not enrolled or illegals not entitled. All were lumped into so-called uninsured.

Government then mandates, spend hundreds of billions on IT systems that don’t work and impose penalties on individuals/businesses that discourage jobs and economic growth.

Now take minimum wage. Basic math tells you that if you have 10 employees making $5 an hour, you have $2,000 a week in payroll. Government now says you must pay them $10, so you have $4,000 in payroll. The employer budget equals $2,000 in payroll so three things can happen:

All reduced to part time to make payroll; employer can lay off five employees to make payroll; or increase prices. With times already tough, option No. 3 is not a reality. Options 1 or 2 are left. Where do those employed in minimum wage jobs win? They don’t!

Before you are sucked into supporting something because you are told it will help you — will it really? We could have found a solution for those actually without insurance for far less than the hundreds of bills that Obamacare/MNSure are going to cost us.

Where will you be with the forced wage issue — cut hours, unemployed or closing your small business?

Political decisions have consequences, It just appears the Democrats don’t care what they are!

David Anderson,

Lonsdale

  • Comment

CONTACT US

  • PO Box 974 Brainerd, MN
  • Switchboard: 218-829-4705
  • Circulation: 218-855-5897
  • Newsroom: 218-829-0211
  • View the Staff Directory
  • or Send feedback

ADVERTISING

SUBSCRIBER SERVICES

SOCIAL NETWORKING