We must get beyond healthcare
March 24, 2010
The healthcare debate in the US has lasted for months. Despite the signing of a bill, it is unlikely that it is over. My observations are that the uncertainty created by the endless debate is a huge drag on the economic recovery, especially as it involves small businesses like packaging machinery companies. If the economy is to recover, businesses need a stable environment in which to work. They don't have that now.
Some companies are thriving and growing. Equipment suppliers who are exporting machines, seem to me, to be recovering more quickly than others. This indicates that foreign economies may be recovering faster than ours.
Confidence is a huge factor in an economic recovery. Knowing your costs and knowing your tax rules helps to build confidence. Not knowing these things is a significant deterrent to risk taking and investment.
Small businesses have been dropping or choosing to not start healthcare plans for employees because they don't know what the cost consequences will be. They've been delaying hiring for the same reason. With new taxes coming on wages, capital gains, and who knows what else, investors will continue to be conservative.
On top of these issues, jobs that are available are going unfilled because qualified workers can do the wage math. Generous long-term unemployment benefits plus part time or under-the-counter employment allow people to remain out of the workforce for months on end and make as much or more than they would make if putting in 40 hour work weeks. I know of one union group that refused to be called back to work, even though work existed at their company. The Speaker of the House has only supported behaviors like this with her remarks that it will be a wonderful economy when artists don't have to go to a day job to get healthcare - the rest of us will pay for it.
No matter which side of the debate you are on, the one thing that needs to happen is to end the debate. Otherwise, small business isn't going to get rolling again. Likewise, starting debate on new topics that affect the workforce, taxes, investment, and small business will cause more uncertainty and further extend the recovery.
As project managers or business people, we learn the lesson of keeping the important thing the most important thing. All the good ideas in the world are worthless if we can't pay for them. The important thing right now is to create a stable environment in which business can rebuild and get people back to work.
TrackBack
TrackBack URL for this entry: http://ontheedgeblog.com/blog-mt1-mt/mt-tb.fcgi/188
 |
Comments
|
|