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Thursday, October 24, 2013

A little bit about economics

Yes, it is a dirty little subject that no one likes to talk about.  But, I think it is time.  I know, 499 out of 500 people failed Econ 101, yes, I was the one person who passed.  I am a little weird, I think you know that by now.

In that Econ 101 class we (or at least I) learned about supply and demand.  When the demand for something goes up, the price for it goes up.  But, if you increase supply, the price then goes down because there is more of it to buy.  So, if something is in plentiful supply, it is cheap.  Like, cheap labor.  If something is scarce, it costs more, like diamonds or engineers.

The CEO of Hardee's and Carl's Jr was using this simple economic philosophy to explain why Obamacare is destroying full time employment in the United States.

Because of the Obamacare mandate that full time workers must be given healthcare insurance at the expense of employers, the cost of full time workers has gone up.  So, employers, who want to stay in business, are using fewer full time workers.  Instead, they are switching to cheaper, part-time workers.


There goes that Oval Office picture in my head again.  Interestingly, there is not a single accounting, finance, or engineering person in the room.  Just all of those liberal arts majors dreaming up fun ways to destroy the American economy.