I don’t mean to pick on Papa John’s or question John Schnatter’s assessment. Let’s just say it is true and think out loud.
If the kind of burden consumers — whoops, I mean corporations and job creators — will bear to ensure that we implement the Affordable Care Act amounts to things like 14 cents a pizza, is that really too high a price to pay for an important service like health care?
Shoot, the price of tomato sauce likely fluctuates more than 14 cents a pizza from month-to-month or from location-to-location. How do businesses survive? How do consumers budget? Why hasn’t the free market fallen to pieces?
These complaints are silly. At worst the increase in labor costs initially might slow hiring until employers “recover” from the shock of these costs. As I mentioned, other costs of business change and fluctuate, but business goes on. Supply and demand work it out.
And to complain that such surcharges are a drag on GDP is a matter that washes out when the costs of uninsured decrease with a better health care system. And it is hard to be overly sympathetic at any rate when corporate profits are at record levels as a share of GDP.
If anything, one should be more suspicious of business motives when they raise prices behind a policy change such as Obamacare. San Francisco is a case study we can check. In that city a health care mandate was passed and it turned out that about half of the employers who set up surcharges spent about 10 per cent of that money on health care. The rest stayed with the business.
Who is going to pay this 14 cent increase? John Schnatter or the people who buy is pizzas, is one question. Where that money would go is a better one.
- Papa John’s pizza cuts employees’ hours supposedly due to Obamacare (americablog.com)
- Breaking Down Centi-Millionaire ‘Papa’ John Schnatter’s Obamacare Math (forbes.com)
- Papa John’s Owner Slammed by Liberals for Stating He’ll Bypass ObamaCare Costs (newsbusters.org)