The Truth About the 'Obamacare Layoffs'
Looking deeper into the job losses attributed to Obamacare, it appears that the health care act is not the looming threat it's being made out to be.
"Obama Reelection Triggers Massive Layoffs Across America."
"Job loss an early consequence of election."
"Obama keeps job; others lose theirs."
"The Obamacare Layoffs Begin..."
"Top US Companies Plan Layoffs Because of Obamacare."
These are some of the headlines coming out of media sources like the Washington Times, the National Review, and Fox News since President Obama won his bid for reelection last Tuesday night. They speak to a looming economic apocalypse and rest the blame on the shoulders of the president and his administration's business and health care policies.
Alarming? Yes. Accurate? Not so much.
Digging just a little under the surface unearths a whole lot of hyperbole and in some cases, to use an executive term, "malarky."
Take the Washington Times article "Obama keeps job; others lose theirs" that loosely claims Boeing (NYSE:BA) and Groupon (NASDAQ:GRPN), among other companies, can directly attribute layoffs to a second Obama term. Pulling only half of a quote from Boeing Defense, Space & Security President and CEO Dennis Muilenburg -- "funding for the US Department of Defense is under extreme pressure" -- the Times carefully omitted the second part of the sentence: "we're innovating and expanding our core, in the US and around the globe, to sustain and grow our business."
While there is indeed a shake-up at Boeing since the winding down of the Iraq and Afghanistan wars means less Pentagon demand for cruise missiles and drones, the company has expanded its commercial airline division -- from 80,000 jobs at the beginning of 2012 to 85,000 presently.
Moreover, the cost-cutting plans were made on November 5, and, according to spokesman Boeing Todd Blecher, were not a response to the election.
As far as Groupon is concerned, Business Insider reported that "the cuts are part of a sales and marketing 'optimization' effort that Groupon management alluded to on the last earnings call."
Consider also the foreboding National Review article "Obamacare Layoffs Begin..." that was about exactly one anonymous Las Vegas business owner who called into a radio show to complain that Obamacare already forced him to fire 22 of his 144 employees -- despite the fact that the law wouldn't go into effect until 2014.
Similarly, the Fox News (NASDAQ:NWS) article claiming "massive layoffs across America" -- merely its headline tacked onto a story published by Utah's KSL.com -- profiles a single coal company, UtahAmerican Energy Inc. of Murray Energy, that cut 102 of its miners' jobs.
It should be noted that Murray Energy CEO Robert Murray has been an outspoken critic of Obama and a supporter of Romney -- even allegedly forcing miners to take an unpaid workday to attend a campaign rally as well as coercing donations and votes for the Republican candidate.
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