Obamacare Will Make the Poor Even Poorer

Remember how Obamacare was supposed to help the economy and provide better options for those who couldn’t afford them? Now it seems that it actually forces employers to cut back on full-time workers and makes them use mostly part-time employees.

From the AP wire comes the story, “Prepping for Obamacare, Chain Cuts Workers’ Hours.”

The owner of Olive Garden and Red Lobster restaurants is putting more workers on part-time status in a test aimed at limiting the impact of looming health coverage requirements. Darden Restaurants declined to give details but said the test is only in restaurants in four markets across the country. The test entails increasing the number of workers on part-time status, meaning they work less than 30 hours a week.

The reason that the company is performing these tests is because they are trying to survive economically. “Under the new health care act, companies will be required to provide health care to full-time employees by 2014. That would significantly boost labor costs for businesses.”

Will we get honest results from these tests? Perhaps, but there will be plenty of pressure to mislead the public about the results. The Obama Administration is not above encouraging companies to break the law in order to prevent bad news before the election.

In a memorandum dated September 28, the White House Office of Management and Budget counseled defense employers not to issue layoff notices on November 1. OMB assured employers that if they did not send out layoff notices and layoffs occurred, the “contracting agency,” namely the Pentagon, would absorb the penalties and attorneys’ fees the employers would have to pay, a significant cost to taxpayers.

I hope Olive Garden and Red Lobster are able to do what they need to do to stay in business. It is too bad that servers, who aren’t making any kind of fortune working at those restaurants, are now being robbed by Obama and Pelosi for the sake of a power grab.

Others have also noticed that Obamacare means more underemployment. A finance blog recommends investment in staffing companies because of the new costs of full-time employees:

The only solution is for employers to eliminate full-time employment positions for unskilled workers earning near minimum wage. Since businesses need unskilled workers for certain functions, employers will only offer temporary and part-time positions to these poor workers because temporary and part-time jobs are exempted from Obamacare’s employer mandate provisions.

This is pretty sad for America — especially for unskilled workers. They go from bad to worse under Obamacare, or rather Obama’s callousness.