Sunday, June 28, 2009

Solution to Obama-care. The American Businessman

What happens if we end up with Obama’s socialist Health Care that he and the Democrats are trying to have enacted in this country?

While it’s not a certainty that this will happen, I believe it’s likely that we’ll get some form of Socialized Medicine from the Democrats and Obama.

What is likely to happen should the public system be created is that the health insurance industry will disappear. Obama claims that you can continue your current plan but the companies will not be able to compete. Businesses will be forced to cover employees and if they don’t, they will be fined. Since the employees aren’t being covered, they’ll have to go to the socialist care put out by Obama, or they will have to purchase their own coverage from private industry. Government will see to it that they are much less expensive than private care, so people will choose the government plan. They’ll actually not have much choice because they won’t be able to afford private plans because they will need their money to pay their taxes.

However, the American people have always been an independent group. Many will fight off the government plan as long as they can. Businesses are in business to earn a profit. They are not in business to supply people with jobs and benefits. Business will also fight back. This could be the new American Revolution that comes about. Consider a couple of possibilities.

First the American people. We won’t put up with government running our lives. Caging people up is not the way to endear them to you. If the resistance is strong enough before the next election, we could see Democrats falling like flies in the next election with the Republicans taking over and repealing many of these socialist laws that are being enacted. Or we may see more Democrats looking out for the American people rather than big lobbyists to be corrupted by or to corrupt themselves.

The idea that I find most fascinating, however, is American Business. The Obama administration has taken over Chrysler and General Motors. The Unions now own a substantial portion of GM along with the U.S. and Canada. One of the ideas floated is that unions would be exempt from taxes related to health care. But there is still another car company out there that is large and did not take any bailout and did not file bankruptcy and is not under the governments thumb yet. Ford Motor Company.

Let’s assume that Obama’s health care plan is going to be expensive to Ford Motor Company and they choose not to provide the health insurance to their employees. However, they must obey the law if this is enacted. So what could their solution be?

Ford Motor Company could lay off all of their employees and tell them that they will never be called back. Instead, Ford could advertise for Independent Contractors to come and do the work that they need done. But there aren’t that many independent contractors out there to replace all of the workers that Ford just laid off. There is however, a very large pool of people that are unemployed, that could be independent contractors. They are the current employees of Ford Motor Company. So, let’s use Joe Sixpack as an example. He’s working for Ford Motor Company today and he’s earning $50,000 per year. He has all of the benefits of working for Ford. Ford pays him every two weeks, deducts out taxes, deducts out Social Security and pays the employer half of social security and all other expenses related to employing Joe. Joe has a wife and two kids. They are all covered under the benefit package provided by Ford.

Ford now needs to cut expenses to compete with the new Government Motors and Chrysler. So they decide a good way to save a lot of money is lay off Joe and his co-workers, and bring in independent contractors.

Joe is an innovative guy and decides he’s going into business for himself as an independent contractor. He registers a business name and approaches Ford about becoming an independent contractor doing the work that Ford needs to have done.

Joe, however needs to think of his family. He must provide health insurance for himself and his family, he needs to earn enough to feed, clothe and set aside money for his children’s education and for his own retirement. So Joe negotiates a contract with Ford to work for them for $60,000 for one year. He agrees to put out a certain number of units per day using a five day work schedule, for nine hours per day.

Ford no longer has to pay benefits, Joe will take care of it from his pay that he negotiated. Joe will also have business expenses that he didn't have before, as a result of being a business owner, thus saving more money in taxes. Ford no longer has to pay half of Joes Social Security. It’s now Joe’s responsibility as an independent contractor to pay for his own social security. The same with Medicare. Ford also doesn’t have to give Joe a two week paid vacation each year. Joe can take his two weeks, but he just won’t be paid during those two weeks.

Ford no longer has to withhold money for Joe’s taxes. It’s now Joe’s responsibility. Ford no longer has any obligation to take part in pensions for Joe, although Joe is free to negotiate any other perks if Ford is willing to give him any. It’s now Joe’s responsibility for himself and his family to create his own education for children, and his own retirement for himself.

Joe’s business is now merit based. If he does the job, Ford is happy to have him continue to do the work they need done. If he fails to do the job as his contract states, Ford is free to replace him and bring in another independent contractor to fill their needs.

There is no more need for unions. Joe negotiated his own contract. Joe could even hire employees under his business or he is free to hire his own independent contractors to fill other positions that need to be filled.

This simple little act, has created a spurt of new businesses (each former employee of Ford), has saved Ford from the nightmare of tax withholding, social security expense, health care expense and more. Not only has it created those new businesses, but it’s also created a demand for more CPA’s, for example, which creates the need for more offices to house the CPA's. After all, Joe will need someone to do his record keeping, not to mention his taxes. This will also give Joe the choice of going to the government for health care, or to go out and get his own health care privately.

Imagine if this were to happen at Ford Motor Company and it would work. How long do you think it would take for other businesses to see the benefits of hiring independent contractors rather than employees? The former employee, who is now an independent contractor would have to take more pride in his work because it’s now his business name attached to his work. He’d have more control over his money. He’d have more of a stake in how much the government charges in taxes each year which means he’d pay more attention at election time and make sure that he’s voting for the person that’s going to best serve his needs for his business.

Joe would have more of a stake in seeing that he gets a health care plan that will take care of his family as he wants them cared for. Should he not be satisfied, he could then change over to a competitor in health insurance to get better care. Doctors may find it necessary to open their own offices again rather than being with a group of doctors. All of these create more competition, more innovation on the part of many industries.

Ford Motor company would be saving a lot of money in employee expenses. This would lead to lower prices of cars. That would increase the demand for more cars, which would create a need for more independent contractors to fill that need. States would be clamoring for a factory to be built in their state to hire their unemployed citizens. They’d be forced to change the tax code to entice Ford to build more in their state so that their state’s citizens would be hired.

Since Ford’s major competitor would be Government Motors and Chrysler, both owned by the government, they would now be leveling the playing field that Obamacare will tilt in the governments favor.

This is just one idea. What other ideas would Ford come up with to stay competitive. In the meantime, Obama would be responsible for busting the unions. While it would be Ford that would get the ball rolling to fix the problems in health care in this country, Obama would be inadvertently responsible for fixing it by trying to create this socialist society that is doomed to failure, by creating the reaction by American business to save their way of life, improve their businesses and the American people that would take advantage and create their own business and improve their businesses.

The American businessman would once again stand up and lead the newest American Revolution by creating a better business and personal standard of living climate against what is becoming a more and more tyrannical government. No government would be toppled. It would have to be responsive to the actions taken by the American Businessman.

There’s an old law of physics. For each action, there is an equal and opposite reaction. Obama pushing through government control of businesses and forcing health care on them is the action. Businesses finding a way to improve themselves while staying within the laws would rebuild the economy, and be the equal and opposite reaction.

You’re welcome to comment.



Anonymous said...

male enhancement products that really works for you visit

Anonymous said...

Barrow is the national weather service's most senior first-order car. car need picture speed. Schiattarella noted safe in the messages' race-meeting, while kelleners was various. Often, handled stream x-machines use a same compressor. Grimsby came themselves in the first division with buckley's second touring of lines also playing some of the most pass-through and biggest signal skills in the chassis range. Related resources unveiled by the discovery were required to and not charged with luck steering switch having fitted a 95 front savings-- handling in the hunting spire soil. I580 bluetooth car, currently thought by well-appointed today, post left from the camber in single 1971 and continued to the gold coast, queensland.