Economics for Politicians Chapter Nine – Unintended Consequences – Bonus Section for Journalists! [Reader Post]
Shortly before Obamacare was passed I was talking with a friend who, with a few business partners, runs a company. The combination of the partners, admin staff, book keepers, etc. had them with a staffing level of 52 full time employees. We were talking about possible implications of the impending legislation and I asked how his business would react if the bill were passed. My friend shook his head and explained that, as it was being proposed at the time, Obamacare would exempt any small business with fewer than 50 employees. “Guess what happens to three of our staff”, was his partnership’s mitigation strategy.
