Guest Post: ObamaCare: The Neutron Bomb That Will Decimate Employment

Tyler Durden's picture

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

ObamaCare will act as a neutron bomb on employment in the U.S. for two basic reasons.

Longtime readers know I have repeatedly explained why healthcare, i.e. sickcare, will bankrupt the nation. Here are two of the dozens of entries I've written on sickcare:
America's Hidden 8% VAT: Sickcare (May 10, 2012)
Can Chronic Ill-Health Bring Down Great Nations? Yes It Can, Yes It Will (November 23, 2011)
I have also explained why ObamaCare's "fixes" are simulacra reforms that don't even address the systemic costs arising from the cartel-fiefdom structure of sickcare:
Why "Healthcare Reform" Is Not Reform, Part I (December 28, 2009)
Why "Healthcare Reform" Is Not Reform, Part II (December 29, 2009)

Sickcare is unsustainable for a number of interlocking reasons: defensive medicine in response to a broken malpractice system; opaque pricing; quasi-monopolies/cartels; systemic disconnect of health from food, diet and fitness; fraud and paperwork consume at least 40% of all sickcare funds; fee-for-service in a cartel system; employers being responsible for healthcare, and a fundamental absence of competition and transparency.
Please glance at these charts to see how the U.S. healthcare costs are double those of competing nations on a per capita basis. Japan provides care for a mere 36% per person of what the U.S. spends--yet millions of Americans remain uninsured or underinsured.
If you set out to design a corrupt, inefficient, wasteful, unfair, deranged and unreformable system, you would arrive at U.S. healthcare.
Sickcare ignores the structural causes of our ill-health:
86% of Workers Are Obese or Have Other Health Issue Just 1 in 7 U.S. workers is of normal weight without a chronic health problem.
The Patient Protection and Affordable Care Act (PPACA), i.e. ObamaCare, is a neutron bomb for employment. A neutron bomb is an enhanced-radiation thermonuclear weapon that famously leaves buildings, autos, etc. intact but kills all the people, even those inside buildings, vehicles, etc.
ObamaCare will act as a neutron bomb on employment in the U.S. for two basic reasons:
1. It is immensely complex, and already-marginalized small business owners will shed employees or simply close rather than have to figure out what all those thousands of pages of regulations and statutes mean to the survival of their business.
2. ObamaCare's primary mechanisms of lowering costs, insurance exchanges and technocratic selection of "best care practices," do nothing to change the systemic flaws of sickcare.
Many other commentators have already outlined how ObamaCare is driving employers to replace fulltime workers with part-time workers to avoid having to pay outrageously expensive monthly healthcare insurance premiums. In this sense, the ObamaCare neutron bomb is already decimating fulltime employment.
I see this response as a Corporate-America strategy. Corporate America has the human resources infrastructure and financial heft to figure out compliance and exploit loopholes in the insanely complex law. Small business has neither the infrastructure nor the financial resources. Small business owners will rely on the same cartels that are currently providing insurance for guidance, and of course the ObamaCare offerings will suit the financial needs of sickcare cartels.
Once small business owners see the costs of their options, some may opt to pay the penalties and others may follow the corporate strategy of turning each fulltime job into two part-time jobs to avoid paying for coverage or penalties, but many will choose instead to call it quits: either downsize to a one-person/one-household business with no employees at all, or sell/close the enterprise and escape the burdens.
What the lobbyists and attorneys who wrote the Obamacare monstrosity do not understand (because they have no exposure to or experience in the real economy) is the fragility of most small businesses: costs keep rising but revenues are stagnant. The mental and financial stresses keep rising, and ObamaCare does nothing to mitigate either source of stress.
The inside-the-Beltway types who crafted this mess have no idea of the pressures facing legitimate (non-black-market) business in America, corporate and small business alike.
ObamaCare offers even more incentives for Corporate America to offshore operations, and it provides powerful incentives to millions of marginal small businesses to shut down or shed all employees.
I am not alone in simply not wanting to waste the time, money and energy required to understand the new law and its various impacts on my business. We will cling to our already insanely expensive private healthcare insurance, which by the way has been grandfathered in: new self-employed entrepreneurs won't be able to buy the absurdly costly policy we have--they will be offered a range of even worse deals, with higher costs and less coverage.
The neutron bomb has gone off, unseen by politicos and the Elites who wrote the bill. It is already decimating fulltime employment, and it will soon add momentum to the free-fall erosion of small business growth and employment.
The strip malls and office parks will still be standing; there just won't be many employees in them.

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GetZeeGold's picture



Necessarily so....we haven't shown you the full agenda.

Richard Chesler's picture

"If you set out to design a corrupt, inefficient, wasteful, unfair, deranged and unreformable system, you would arrive at U.S. healthcare."

Cunt Pelosi must be so proud.

Shell Game's picture

"Cunt Pelosi must be so proud."

The sick fucking thing, Dick, is that she is...

true brain's picture

Notice that the cost took off at 1984; that's around that year that HMO concept was introduced and implemented.

kaiserhoff's picture

This isn't the only thing killing America, but it would be sufficient.  It will suffice.



James_Cole's picture

A good article on how everyone not on medicare is being totally ripped off in the US.

Healthcare is the ideal monopoly industry, with or without Obamacare.

tbone654's picture

did anyone notice that employers are dropping spouses from medical coverage like crazy?  The bomb has already hit...

The best model is to divorce your spouse legally, continue to live with them...  Pay them 100% of your wages for services...  Sign up for state run healthcare at no cost...  sign up for state run food stamps at no cost...  sign up for rent assistance...  Free school lunches...  Do not own a house... etc.

There were benefits to being married... there are no more...  all a part of the communist democrat party plan...  No one from this point forward should marry in the U.S. if you have any business sense...  $235,000 average cost per child, etc.

Note: June marks the 50 year anniversary of the supreme court upholding the lower court ban on "prayer in school"...  I thank all you communist fucks for wrecking this country over the past 50 years...

Bicycle Repairman's picture

"The neutron bomb has gone off, unseen by politicos and the Elites who wrote the bill."

They are fully aware.  They wrote the bill.  This crisis will not go to waste.  Imagine the popularity of our eventual "savior".

dracos_ghost's picture


I also think they are fully aware. This is textbook Cloward-Pivens strategy. The end game is destruction so they are on message.

The Thunder Child's picture

Obamacare IS the endgame, it was fully designed to push us of the cliff.

imapopulistnow's picture

As much as it appears - to any logical person - that those who designed this thing must know it will fail, sadly I would venture they do not have a clue. 

It is a combination of innumeracy and emotion-driven ideology.

mayhem_korner's picture



It will fail if one believes that it is intended to improve access to and/or quality of healthcare.  But that is not it's objective.  It will succeed in its real objective.

cynicalskeptic's picture

The OBJECTIVE was to feed the insurance companies - NOT to provide health care for the masses.  If you really wanted to provide health care (like every other western industrialized nation) you'd go with a single pay system (allowing additional paid for premium service if so desired - makes the elite feel better).

Costs in the US are due to all the OVERHEAD - insurance carriers that don;t want ot pay, docotrs and hospitals that waste half theor time trying to collect  and propped up drug costs and FRAUD (want a rascal hoverround free wheelchair diabetic supplies etc).

Only in the US does the money go not to the direct providers - doctors and hospitals but to the INSURANCE COMPANIES who are making record profits and the drug and supplies providers who collect HUGE mark-ups on their sales to gov't programs.

Buckaroo Banzai's picture

There are good politicians, and evil politicians, but very few stupid politicians. (I mean besides you, Joe Kennedy).

Since they are not stupid, it goes without saying that they know exactly what they are doing.

It is important to remember, that these people, while very smart, are mentally disabled. You see, they are convinced that they know what's best for you and I, and they are going to ram it down our throats, whether we like it or not. "Baby must take its medicine!" It's a sick brew of megalomania, sociopathy, and narcissism.

Endgamer's picture

Those who originally crafted Obamacare did so out of naïvité.  However, its sponsors have a complete understanding of the intended consequences and they've already named the bill after their scapegoat.  

mayhem_korner's picture



The endgame is consolidation of power.  Obamacare is just a component of it.  See Alinsky, More, Plato, and Marx for recipes to create the false god of utopia via central control.

Chuck Walla's picture

Necessarily so....we haven't shown you the full agenda.



Can't fundamentally change America without crushing the people first. Education then welfare then health care prepares the sheeple for the "new" normal of dictatorship.


Karl von Bahnhof's picture

Soviets were geniuses compared to this!

Buckaroo Banzai's picture

The Soviets only dreamed of doing what these sick fucks in Washington DC are now doing.

kaiserhoff's picture

Funny you should mention that.  One of my first comments on ZH many moons ago was along those lines.  As best I remember...

"If the KGB ever got to choose an American President, wouldn't Barry Hussein make the short list?"

Buckaroo Banzai's picture

Funny you should mention that. Because that's exactly what did happen.

overmedicatedundersexed's picture

who had the time and finances to sit down and write 2000 plus pages of regs as in o bum a care..answer that and you know the reason it is a gift to some and the death of it sure was not one senator or congressman or thier staff who wrote this gigantic bill.

Anusocracy's picture

Corporations that parasitize other corporations should be expected to arise.

Parasitism is a very successful strategy.



midtowng's picture

The solution is a single-payer health care system just like the rest of the industrialized world has.

Buckaroo Banzai's picture

BULLSHIT. The rest of the industrialized world is getting dragged down the drain by the burden of their single-payer systems. Look at how much cheaper medical care is in the so-called "non-industrialized world". The quality of care you can get in Thailand for the money you spend is astounding. Why is that?

Because there is a FREE MARKET for health care there.

I cannot fucking believe how obvious this is. Our healthcare system is so fucking socialized it's ridiculous, and yet there are so many turd-brains who cry for even more socialization of medicine. What a pathetic bunch of dimwits live in our country now.

We used to have a cash-for-services model in this country that WORKED GREAT. For those that couldn't pay, there was a robust network of charity hospitals. Your average doctor charged a reasonable cash fee. If you couldn't pay the posted fee, you worked out a barter arrangement or payment plan, or our doctor frequently simply reduced his fee on a case by case basis BECAUSE HE WAS IN THE BUSINESS OF HELPING PEOPLE GET BETTER, NOT GETTING RICH OFF HIS PATIENTS.

What a degenerate moral sewer this country has become.

kaiserhoff's picture

Amen.  Break the monopoly power of the MDs and no one will need SICK INSURANCE.

That's the way America was, will into the seventies.

Umh's picture

Most Doctors today work for a company instead of for themselves because they need the bureaucracy to deal with the insurance companies.

Anusocracy's picture

And behind the insurance companies stands government and its regulations.

GCT's picture

Bingo buckaroo wins the prize.  When living in the Far East medical care was indeed market driven.  I use several doctors and the visits were 15 bucks, the tests done in-house and the x-ray was 20 bucks.  Insurance and the government gots us to this point and now we are all basically screwed.

My brother has AIDs and his medication is over 1500 bucks a month.  Visiting Africa the same drug manufactured by the same company was 4 bucks. Until the American people actually wake up and get tired of being ripped off nothing will change. 

Oldwood's picture

The medical drug industry is about wealth redistribution. The reason why drugs are so cheap in Africa is because drug companies will basically give the drugs away there to prevent another company cloning them. All of the marketing and development costs are borne by Americans because this is the only country that will protect their patents. In order for free markets to work there have to be rules. Just like with our exporting of jobs due to competition with low wage countries, drug manufacturers would stop development of new drug technologies if they could not protect their patents. Your brother might well despise the drug companies for what they charge, but if there was not customer willing to pay the costs would the drug even exist?

Savvy's picture

If Americans made what Africans did, the drugs would cost 4 bucks in the US too

NeedtoSecede's picture

Wish I could keep hammering tha Green Arrow for you Buck.  Nothing more needs to be said on this subject.

Oh ya, Pelosi is a CUNT, I agree with that point too.

We are so fucked.

Savvy's picture

Not really. U.S. GDP per capita income is $48,112 India's (for ie) is $3,627. While a $5k knee replacement for you may seem a great deal (and they do have some of the world's finest surgeons) for an average Indian it's as out of reach as a $65k knee replacement is for the average American. If you have the cash to fly to India to take advantage of this, by all means, I sure as hell would rather than spend the horific amount it costs in the US and for more than financial reasons too.


You say:

The rest of the industrialized world is getting dragged down the drain by the burden of their single-payer systems.


Really? source? Perhaps demographics will play a role in the not too distant future but I haven't heard much noise about it. I pay $120.50/mnth for two adults (I'm self employed, not covered by employer) for total complete healtcare, no deductibles. So perhaps you could explain how Canada can provide complete health care for all it's citizens at half the cost the US does with so many problems (outrageous premiums, high deductibles, 50 million unisnured and often no coverage at all despite having a plan)?

I'll add. illegal immigrants do not get health care provided.

edit to add. Obamacare exacerbates everything wrong with US H/C unbelievably damaging it will be.

MedTechEntrepreneur's picture

I can tell you all as a Medical insider that Obamacare is ALREADY cratering the medical market.  The American Bioengineering and Lifesciences  in emerging medical devices leads the world in innovation.  Now, companies that I work with and my own company  are being devastated by the Venture Capital market drying up like a Serengenti drought. The FDA was already chasing a lot of business to Europe...and now this.  Obamacare with its device tax and associated cost explosion will kill the emerging device market for a generation or even perhaps permanetly....pending an American Spring, that is....

Umh's picture

I will give you credit for knowing that Obamacare is worse than a single-payer health care system. That doesn't make a single-payer plan a great idea just better than what the Democrats cooked up.

Anusocracy's picture

"The solution is a single-payer health care system ..."

The solution is the separation of government from existence.

Dingleberry's picture

Here is the logic:

Obamacare=job loss=unemployment/welfare/SNAP cards n' shit=more "poor & disenfranchised"= Dem votes.


mercenaryomics's picture


And don't forget how many government-teet-suckling dem voters  a $9 minimum wage will produce...  

Anusocracy's picture

Harry Browne once said that the government breaks your leg and then offers itself as a crutch.

localsavage's picture

No reason to see this as a problem we will just "drop" some more and keep the numbers steady and Benny will print some more to pay for it.  Problem solved  DOW 20k bitches

max2205's picture

it's the robot it's picture

Can they just let me go to the Pharmacy and buy some anti-biotics already when I need them like the rest of the world....would save tons of money...

maskone909's picture

**edit. oxycodone/vicodin ftmfw

TheGreatOutdoors's picture

Consumers self-prescribing antibiotics (and not finishing the full course because they begin to feel better) is a big factor in the emergence of drug-resistant bacteria.

dwdollar's picture

I guess all those antibiotics used on animals don't do anything?

Just another bogus lie used by Uncle Scam's sick-care industry... Resistance happens regardless.

Bicycle Repairman's picture

Shhhh.  The meme is that over-use of anti-biotics by you causes the problem.  Stay on script.  Leave the "food industry" alone.  They know what they're doing.