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Monday, December 1, 2014

Another Blow to the American Worker by Obama

In the news today, we had confirmation of another blow being struck against the average American worker by president Obama.  This time, the injury to the working man or woman is the result of Obama's unconstitutional action regarding immigration.  The way Obama has structured his illegal action, he is actually providing an incentive to businesses to hire illegals over American citizens.

Let me explain:  Under Obamacare, every business with more than 50 employees has to provide health insurance to its workers; that is the so-called employers' mandate.  Failure to provide insurance results in a fine of roughly $3000 per employee.  Given the high cost of insurance, it is expected that many employers will opt for the fine rather than paying the higher cost of insurance. 

Obama has just legalized about three or four million additional workers from among the illegal aliens in the country.  These newly "legal" workers are not allowed to participate in Obamacare.  That means that for those workers, employers have no obligation to provide health insurance.  Further, for those employers who choose to pay the fine, there will be nothing owing for any newly "legalized" worker who gets hired.

Think how that works in practice.  A company has an opening for a worker at an annual salary of $30,000.  If the company hires an American citizen, it will have to pay for health insurance or a $3000 fine for not providing that insurance.  If the same company hires one of the newly "legalized" immigrants, it need not pay for insurance or for the $3000 fine.  That means that Obama's action makes the cost of an American worker at least $33,000 while the cost of a "legalized" immigrant for the same job is only $30,000.  It is a subsidy for the employment of the illegals and yet another bar for the hiring of America's middle and working class citizens.

Add this to the fact that all wages will be lower because there were just three or four million workers added to the market by Obama, and you can see just what a terrible blow Obama's action was to the economic prospects of the average American.




 

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