Big Business is being wooed by the Obama administration to support a government take over of healthcare. Their incentive to go along is that employer-provided health insurance has become so expensive every corporation and business needs to find a way out of the crunch before it makes them unprofitable.
In my view, going along with Obamacare in hopes of being able to dump their employees into the government plan and thereby eliminate those costs from their income statement is very misguided. Those executives who have drunk the koolaid on Obamacare (Roberts of Comcast is the latest) don’t seem to realize that all the new taxes and regulations in any government-run health system will end up making their bottom line worse off that it is now, even after throwing their employees healthcare to the wolves. The damage to the economic growth of the entire economy will also hurt their business. It is not unheard of for high level corporate executives and smart investors to be politically stupid (think Warren Buffet), so we shouldn’t be surprised.
There are a few large corporations in America who have taken a more realistic look at just how beneficial it might be, or not be, to dump their employees into a government-run health system. St. Louis-based Emerson, formerly Emerson Electric, and Minneapolis-based 3M Corporation don’t seem to be falling so easily for this Faustian bargain. Apparently, these companies are managed by CEOs who look a little farther ahead. There are two posts by Scott Johnson on the Powerlineblog that give an explanation of the thinking at those companies, with links to other sources.
This is an opportunity to see which companies value their employees. With it becoming increasingly clear that Obamacare will devastate health care and stifle economic growth it is callous and self destructive of anyone running a business to support it, in my view.