Hiring employees and paying their medical insurance is like a buying a reverse lottery ticket: if your number comes up, your company goes bankrupt. From Karl Denninger at theburningplatform.com:
We have an opiod epidemic in this country in no small part because of the loss of jobs available to blue-collar workers — people who are not rocket scientists; people with no hope, no future and no job prospects often turn to intoxication. There’s a lot of people in this country facing this situation today; most people fall under the “average” area of the bell curve when it comes to intelligence. Their jobs went overseas or simply disappeared not only because of bad trade deals but because the medical system got parasitic to the point that it now consumes nearly one dollar in five in the United States. Laws such as ERISA, EMTALA and similar anti-discrimination statutes along with this parasitic sector of our economy mean that a small business offering health coverage as a benefit will be instantly bankrupted by one person who gets hired and has a $100,000/year chronic condition, and the owner of said business is forced by law to conspire with the ill applicant that comes in his door seeking work to screw his other employees.
The result? You’re nuts to hire your first employee and you’re definitely nuts to violate any of the thresholds that trigger various requirements in laws when it comes to benefit packages and similar.
One-person businesses are great but they need to grow into 5, 10, 20 and 50 person businesses for the United States to be great again.
They can’t under the present system because just one event completely out of the owner’s control destroys everything he or she has built, it is trivial for anyone who has such a condition to target said company and if they do there is nothing that either the employer or other employees can do about it.
To continue reading: Reality: ‘Employers’ Have Been Priced Out