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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Matt's picture

It's the same thing; the consumer is the factory farm, since the individual animal was not diagnosed with a disease by a veterinarian and prescribed the antibiotic. 

Meat Hammer's picture

Statists get mad when you don't let them frame the debate.

Winston of Oceania's picture

Complete bs, it is the antibiotics they feed your meat source that's doing that. Cows so sick on hormones and what we feed them that we have to pump them full of antibiotics to keep them growing twice the normal rate.

Anusocracy's picture

Where do you get your prescription antibiotics ever the counter?

Matt's picture

Mexico? Pet and farm supply stores?

NeedtoSecede's picture

Who the fuck are you here trolling for TGO?  Are you some lacky from Nanny Bloomberg's Home Office or something, lecturing us about anti-biotics?  JFC, how many people die every year from medical "mistakes" while in the fucking hospital?  How many people die from infections they get while in the fucking hospitals? And these same fucking cocksuckers who kill patients by the thousands every year are in bed with them same cocksockers who are trying to tell me how many bullets my guns (which have killed nobody) should hold.  Go fuck yourself with your worthless fucking lecture!

francis_sawyer's picture

Nope ~ the 'Bankers Incorporated' want you sick so they can print MOAR money for themselves... No profits in everybody being healthy...

Winston Churchill's picture

Google 'fishmox".

Exact same manufactures,pills,dosages repackaged as fish anti biotics.

No script required.'s picture

My fish does look kinda sickly now that you mention it...

The Thunder Child's picture

Good tidbit there, I was having problems acquiring that prep.


Chuck Walla'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...

A franchise is worthless if its not protected at all hazards, like politicians and lawyers...


F22's picture

MRSA, VRE, VRSA...... These are just a sampling of the superbugs we've created with the current flawed system.  If anyone can buy antibiotics whenever they want, there will be no effective solution for any infection.  The pathogens evolve far more quickly than we will be able to create new drugs.

ebworthen's picture said:  "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..."

That's why they don't let you, it would save you money and lose them money; that's what it's all about.


Moneycare for them, not healthcare for us.

joego1's picture, get the fish antibiotics. The exact same as human stuff just have a fish on the label.

joego1's picture, get the fish antibiotics. The exact same as human stuff just have a fish on the label.

Cognitive Dissonance's picture

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

Sorry Charles, but that is accusing those who pushed this monstrosity of simple ignorance or blindness. Neither is the case. They knew what they were doing when they started down this slope. And so we should have as well. 

Now we will reap what they have sown.

Shell Game's picture

ay-gawd, CD, reminds me of that gem from her Highness..


Cognitive Dissonance's picture

Even she had a problem speaking such nonsense without mentally and verbally stumbling.

<That does not compute.>

akarc's picture

"And so we should have as well. 

Now we will reap what they have sown."


Which is cause and consequence of damn near every problem in this country.

We should have known

we did not care to

We should have taken action

we did not care to

we should have been responsible citizens

we were not

we will reap what "WE" have sown.

And then bitch about it!

kaiserhoff's picture

Well said CD, but if this crowd isn't ready for what's coming, no one is.

Miss Expectations's picture

So then you have to ask yourself, why doesn't Charles see?  Simple ignorance, blindness or complicity? 

Cognitive Dissonance's picture

IMHO Charles believes in the system, just not this system. He has his own ideology and thinks if only we changed this or tweeked that everything will be somewhat better.

He thinks it is just a matter of a few bad apples. Or even many bad apples. Doesn't matter. He will not look directly into the abyss.

Shizzmoney's picture

I can't wait for my premiums to go up, ad nauseum, for the rest of my life.

There WILL be mass layoffs due to ObamaCare.  Corporatized Health Care is even worse than Single Payer.

Bicycle Repairman's picture

"Corporatized Health Care is even worse than Single Payer."

Yes.  Let's solve this crisis once and for all.

TheGreatOutdoors's picture

*Removed - reply placed in wrong thread.

gaoptimize's picture

A key component of our economic problems well addressed.  Thanks.  You will never see this discussed so well in big-pharma sponsored MSM. 

Yellowhoard's picture

For the last time, ObamaCare is designed to kill old people.

Old people are expensive.

It's not complicated.

mayhem_korner's picture



It's designed to increase central control of the allocation of services.  As is the objective of all statist policies.

Yellowhoard's picture

No argument here.

Central control is necessary to reward the newly brainwashed youth and kill off the older generation that disagrees with the new paradigm.

All kinds of budget problems and empire building objectives are accomplished with national healthcare.

It's a level of evil that is really hard to get your mind around.

Winston of Oceania's picture

Helps out with those pesky unfunded liabilities hanging over our heads as well...

mayhem_korner's picture

It's a level of evil that is really hard to get your mind around.


+1 well said.

It's right in the strike zone of the statist playbook, though.  Use the "undeniable" - in this case, everyone's "right" to have their bodies taken care of - as a buttress for engineering resource allocations.  Most of the major tenets of statism anchor to some "undeniable" veil - "educating our children", "caring for the sick", "feeding the poor", "taking care of our seniors".  No one dares to challenge these veils for fear of being labeled discompassionate.  But it is all a LIE.

Buckaroo Banzai's picture

In order to control people, you need to control their minds (PUBLIC EDUCATION AND HIGHER EDUCATION).

To completely control their minds, you must also control their bodies.

That means you must control their food (MONSANTO) and their health (OBAMACARE).

You also need to make sure they can't physically resist ("COMMON SENSE" GUN CONTROL)

You also need to make sure they can't mentally resist (PSYCHOTROPIC DRUGS, FLUORIDES IN THE WATER)

Tijuana Donkey Show's picture

Actually, the real plan for old people is this: Get them to spend their last bucks buying foreclosures in Florida, move there, then BAM, global warming floods the whole place underwater, and washes them all out into the Gulf of Mexico, where they absorb oil, and help fish populations recover. It's science, science!

Extra credit: Hidden waiver in a congressional bill exempting insurance companies from paying for the houses. 

Tijuana Donkey Show's picture

I see you old haters have no sense of humor, or you fear this is the real plan. I see why MDB gets a thrill on trolling for idiots.

mayhem_korner's picture



The thing about humor needs to be funny.

RSBriggs's picture

And in most cases, the truth usually isn't very funny...

Winston of Oceania's picture

"Old people are expensive" You are quite correct in the regard of their usefulness to the State. Remember comrades; the health care system is nothing more than an organ of the State and as such a consumer (us sheeple) must at least not pose a burden to the State. If you can no longer work what right have you to "retire" to a life of leisure while your fellows toil , er I mean serve the glory of the the State.


"It's not against right, it's You against the State" Ludwig von Mises

mayhem_korner's picture



Old people are also insightful, witty, and the ultimate destination of everyone hoping to avoid a premature visit to the mortician.

Among the worst things Obamacare does is neuter the remaining beauty inherent in the elderly.

Shizzmoney's picture

For the last time, ObamaCare is designed to kill old people.

And poor young people (unless they bow to their corporate masters).

RSBriggs's picture

Poor, young, white people.   There, fixed it for you.

secret_sam's picture

You're clearly quite crazy.  It would be far easier to kill old people if that's what anyone wanted to do.  Just cut off the Medicare.

ACA is about increasing government subsidies to the FIRE sector.  FIRE owns government and they want more money.  "ObamaCare" is how they're getting it.

hootowl's picture

It is also designed to kill new people/newborn/preborn citizens.  They are also expensive and pay no taxes/tribute for years.  Nearly 60,000,000 (that's 60 million) preborn American citizens have been legally murdered since 1973, many of whom would have been paying taxes/tribute by now..(unintended consequences?) ...Thus the desperate need for the illegal alien invasion of instant tributees for fleecing to try to keep the governmental scam afloat a little longer.....again a failure of central planning as the illegal alien "tributees" are actually succoring parasites feeding off the few remaining domestic tributee sheeple who have been deluded/coerced/intimidated into their fuedalist role as hosts for both the demented liberal (Is that redundant?) domestic parasites and the illegal alien parasitical hordes.



secret_sam's picture

The unborn aren't citizens.  You should read the Constitution one of these days--it's discussed there.  Some folks consider that an important document.

JustObserving's picture

Everyone know that the US is bankrupt due to medical care costs.  Unfunded liabilities for Medicare are $107 trillion or $340,000 per citizen.

And they rise at least $6 trillion a year or $20,000 per citizen per year.

The US makes Greece look like a model of financial propriety.


DutchDude's picture

Reminds me of the Dutch healthcare system... almost 20% of GDP is spent on healthcare by our goverment, AND all people are obliged to pay a montly insurance fee of at least €110,- (cartels) with a risk of €200-500,-

And those fees have risen 5~10% for the last years...

If you don't pay; there's a 30% fine, but if you still don't pay... well, nothing really happens if you're broke; you're still getting treatment. The costs are being couched up by the rest. In a country with more and more broke people costs are begint payed by less and less people... it's going out of control here. Some parties plan on making that fee income dependable; families earning ~50-70K a year should pay up to €500,- a person if it's up to the socialists! This plan almost passed voting in the Netherlands!

Hope that's not heading your way fellow ZH-ers in the states!