Businesses Agree With Starbucks CEO That ObamaCare Is Have A Negative Impact On Small Businesses

- March 21, 2013

Starbucks CEO Howard Schultz Says ObamaCare Has "Significant Unintended Consequences" For Small Businesses. "In terms of the health care law, that's going to go into effect, there are significant unintended consequences that was not thought out as much as it should have, that will significantly affect the cost structure of small businesses. This is an example, where I think you've got to be very careful with this kind of transformation legislation that ultimately, perhaps, has a negative effect on the economy." (CNBC's "Closing Bell," 3/20/13)

Companies Have Delayed Workers And Held Off On Hiring

The Federal Reserve: Employers Cited ObamaCare As Reasons For "Planned Layoffs And Reluctance To Hire More Staff." "Employers in several Districts cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff." ("Current Economic Conditions," Federal Reserve, 3/6/13)

  • The Federal Reserve: Businesses Have "Delayed Hiring" Due To ObamaCare. "Firms continued to report changes in health care policy and fiscal uncertainty as reasons for delayed hiring." ("Current Economic Conditions," Federal Reserve, 3/6/13)
  • The Federal Reserve: ObamaCare Has Caused Companies To Hire "The Absolute Minimum" Of Employees To Skirt The Law's Burdensome Regulations. "Some contacts noted concern that client companies are hiring the absolute minimum to get by due to uncertainty about the Affordable Care Act." ("Current Economic Conditions," Federal Reserve, 3/6/13)

Former Obama Economic Adviser Jared Bernstein, When Asked If ObamaCare Was Restraining Job Creation, Responded That It Was Making Him "Nervous" And That It Was Something To Watch For. CNBC'S STEVE LEISMAN: "How many times have we heard of the 'Beige Book?' Specific comments from Federal Reserve districts, one where Lacker is the president and one where Evans is the president so there isn't going to be any bias there. Specifically saying the Affordable Care Act is restraining hiring. Jared, I wonder how you will respond to that?" FORMER OBAMA ECONOMIC ADVISER JARED BERNSTEIN: "I'm a little nervous about that, Austan made that point and I think there is something to it. I think it's something worth watching." (CNBC's "Squawk Box," 3/8/13)

Higher Health Care Costs Are Having A Negative Effect On Business' Cost Structure

Coal Operators Shared With The Federal Reserve That "Rising Health Insurance Premiums" Are A Concern. "We heard several reports of layoffs by coal operators. Many of our contacts pointed to rising health insurance premiums as a concern." ("Current Economic Conditions," Federal Reserve, 3/6/13)

  • Cleveland's Manufacturing Sector Cited "Rising Health Insurance Premiums" As "A Challenge." "Wage pressures are contained, although rising health insurance premiums remain a challenge." ("Current Economic Conditions," Federal Reserve, 3/6/13)
  • As The Cost Of Health Care Continues To Increase, Employers Plan On Shifting The Higher Costs On To Employees. "Costs for healthcare and other benefits continued to increase; some contacts noted that they were passing along the higher costs to employees." ("Current Economic Conditions," Federal Reserve, 3/6/13)

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