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Economy: Post-Election Firings and Layoffs Surge

November 10th, 2012

 The victory by Barack Obama on election night has resulted in a huge wave of firings and layoffs all over America.  A large number of businesses seem to have suddenly shifted into panic mode.  The number of layoff announcements that we have seen in the last 48 hours has been absolutely shocking.  So why is this happening?  Well, the truth is that the federal government is absolutely suffocating small businesses all over America with rules, regulations and taxes.  If you have never tried to run a small business, then you have no idea how oppressive this system actually is for people that are trying to run small businesses successfully.  It has steadily gotten worse over the years no matter who has been in the White House and no matter who has controlled Congress.  So we shouldn’t put 100% of the blame on Obama.  Bush massively expanded government and made things harder on small business people too.  But what many small business people were looking for on this election day was just a little bit of help.  Many were desperately holding out hope that Obamacare would be repealed so that they would not have to get rid of some of their employees.  Many were hoping to get a little bit of relief from the crippling regulations and taxes that are absolutely crushing them.  But now that Barack Obama has been given another four years, they understand that there is no hope on the horizon and that things are only going to get worse.  So they are making the hard decisions that they feel are necessary in order to survive in this economic environment.

And I certainly don’t blame them.  You only want to have employees if you can make a profit on them.  And in this environment it is getting harder than ever to make a profit on an employee.  You see, the truth is that what you cost your employer goes far beyond your salary or your hourly wage.  I think many of you would be absolutely shocked if you learned how much it actually costs your employer to employ you.  And now thanks to Obamacare, that cost is going to go up even more.

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Many businesses are not even feasible at all in this economic environment.  Many small businesses had been holding out hope that somehow this election might turn things around and make it possible for them to keep going, but when Obama won it was kind of like the straw that broke the camel’s back.

You can’t do what the federal government and the state governments are doing to us and expect to have a thriving economy.  They are choking the life out of us.

New businesses and small businesses are supposed to be at the heart of our economic system.  Unfortunately, the environment that has been created is absolutely killing them.  This is a recipe for disaster.

In a previous article, I noted that the number of jobs created at new businesses in 2010 in the United States wasless than half of what it was back in the year 2000.

Now we can expect that number to get even worse and we can expect large numbers of small businesses to shrink in size or close their doors completely.

The following is a list of some of the post-election firings and layoffs that we have seen since Tuesday night…

#1 Utah

A Utah coal company owned by a vocal critic of President Barack Obama has laid off 102 miners.

The layoffs at the West Ridge Mine are effective immediately, according to UtahAmerican Energy Inc., a subsidiary of Murray Energy Corp. They were announced in a short statement made public Thursday, two days after Obama won re-election.

The layoffs are necessary because of the president’s “war on coal,” the statement said. The slogan is one used frequently during the election by Murray Energy CEO Robert Murray, who was an ardent supporter of Republican presidential candidate Mitt Romney.

In its statement, UtahAmerican Energy blames the Obama administration for instituting policies that will close down “204 American coal-fired power plants by 2014″ and for drastically reducing the market for coal.

#2 Ohio

I work for the oldest and largest health insurer in the state of Ohio in the underwriting department. At 9 a.m.this morning, my department (about 50) were called into a meeting in the executive boardroom. We were informed that due to a provision in the healthcare ‘reform’ effective 2014 called guarantee issue, our services would no longer be needed, and we were offered severance  So Obama got to keep his job, and we lost ours. It is maddening that some tyrant 400 miles away can have such a ruinous effect on peoples lives.

#3 Nevada

A Las Vegas business owner with 114 employees fired 22 workers today, apparently as a direct result of President Obama’s re-election.

“David” (he asked to remain anonymous for obvious reasons) told Host Kevin Wall on 100.5 KXNT that “elections have consequences” and that “at the end of the day, I need to survive.”

Here’s an excerpt from the interview. Click the audio tab below to hear even more from this compelling conversation:

“I’ve done my share of educating my employees. I never tell them which way to vote. I believe in the free system we have, I believe in the right to choose who they want to be president, but I did explain as a business owner that I have always put my employees first. I always made sure that when I went without a paycheck that [I] made sure they were paid. And I explained that I always put them first and unfortunately I’m at a point where I’m being forced to have to worry about me and my family now and a business that I built from just me to 114 employees.

#4 Posted below is a list of layoff headlines from the past few days that was posted on AmericanThinker.com

Obama was “fired up” and so were the voters, and so now, the mass firings begin. Here’s a collection of today’s headlines.  Please say a prayer for the families who will be suffering. Had Romney won, many of these companies would now be hiring.

Teco Coal officials announce layoffs

Momentive Inc plans temporary layoffs for 150

Wilkes-Barre officials to announce mandatory layoffs

600 layoffs at Groupon

More layoffs announced at Aniston Weapons Incinerator

Murray Energy confirms 150 layoffs at 3 subsidiaries

130 laid off in Minnesota dairy plant closure

Stanford brake plant to lay off 75

Turbocare, Oce to lay off more than 220 workers

ATI plans to lay off 172 workers in North Richland Hills

SpaceX claims its first victims as Rocketdyne lays off 100

Providence Journal lays off 23 full-time employees

CVPH lays off 17

New Energy lays off 40 employees

102 Utah miners laid off because of ‘war on coal’, company says

US Cellular drops Chicago, cuts 640 jobs

Career Education to cut 900 jobs, close 23 campuses

Vestas to cut 3,000 more jobs

First Energy to cut 400 jobs by 2016

Mine owner blames Obama for layoffs (54 fired last night)

Canceled program costs 115 jobs at Ohio air base

AMD trims Austin workforce – 400 jobs slashed

100 workers lose jobs as Caterpillar closes plant in Minnesota

Exide to lay off 150 workers

TE Connectivity to close Guilford plant, lay off 620

More Layoffs for Major Wind Company (3,000 jobs cut)

Cigna to lay off 1,300 workers worldwide

Ameridose to lay off hundreds of workers

#5 According to the Blaze, the following major corporations have all announced layoffs in just the past two days…

Energizer

Exide Technologies

Westinghouse

Research in Motion Limited

Lightyear Network Solutions

Providence Journal

Hawker Beechcraft

Boeing (30% of their management staff)

CVPH Medical Center

US Cellular

Momentive Performance Materials

Rocketdyne

Brake Parts

Vestas Wind Systems

Husqvarna

Center for Hospice New York

Bristol-Meyers

OCE North America

Darden Restaurants

West Ridge Mine

United Blood Services Gulf

You can get the rest of the details right here.

#6 The following is a list of companies that will be laying off workers just because of Obamacare that was compiled by FreedomWorks

Dana Holding Corp.

As recently as a week ago, a global auto parts manufacturing company in Ohio known as Dana Holding Corp., warned their employees of potential layoffs, citing “$24 million over the next six years in additional U.S. health care expenses”.  After laying off several white collar staffers,company insiders have hinted at more to come.  The company will have to cover the additional $24 million cost somehow, which will likely equate to numerous cuts in their current workforce of 25,500 worldwide.  

Stryker

One of the biggest medical device manufacturers in the world, Stryker will close their facility in Orchard Park, New York, eliminating 96 jobs in December.  Worse, they plan on countering the medical device tax in Obamacare by slashing 5% of their global workforce - an estimated 1,170 positions.

Boston Scientific

In October of 2009, Boston Scientific CEO Ray Elliott, warned that proposed taxes in the health care reform bill could “lead to significant job losses” for his company.  Nearly two years later, Elliott announced that the company would be cutting anywhere between 1,200 and 1,400 jobs, while simultaneously shifting investments and workers overseas – to China.

Medtronic

In March of 2010, medical device maker Medtronic warned that Obamacare taxes could result in a reduction of precisely 1,000 jobs.  That plan became reality when the company cut 500 positions over the summer, with another 500 set for the end of 2013.  

Others

short list of other companies facing future layoffs at the hands of Obamacare:

  • Smith & Nephew – 770 layoffs
  • Abbott Labs – 700 layoffs
  • Covidien – 595 layoffs
  • Kinetic Concepts – 427 layoffs
  • St. Jude Medical – 300 layoffs
  • Hill Rom – 200 layoffs

A lot of other businesses are going to reduce the number of employees they have or reduce the average work week in order to avoid the Obamacare insurance coverage mandate that will soon be implemented.

This is how CNSNews.com describes the choice that many employers will be facing…

That section, known as the employer mandate, requires any business with 50 or more full-time employees to provide at least the minimum level of government-defined health coverage to those employees. In other words, a business must provide insurance if it has 50 or more employees working an average of just 30 hours per week, which is 10 hours per week fewer than the traditional 40-hour work week.

Thus, by cutting employees’ hours to ensure they average less than the 30 per week, employers could potentially avoid the cost of providing the minimum insurance levels mandated by Obamacare.

So if your company trims the number of workers to just under 50 or starts going to “29 hour work weeks”, then you will know who to blame.

All of this is complete and utter insanity.  We are committing national economic suicide.

But perhaps we deserve this.  After all, Americans willingly chose their leaders on election day.  It is getting harder and harder to deny that our politicians are truly a reflection of who we are as a nation.

The American people chose this path, and now we get to see where it leads us.

Written By Michael Snyder

Michael has an undergraduate degree in Commerce from the University of Virginia and a law degree from the University of Florida law school.   He also has an LLM from the University of Florida law school. Michael has worked for some of the largest law firms in Washington D.C., but now is mostly focused on trying to make a difference in the world.


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  1. Bob
    November 18th, 2012 at 01:28 | #1

    @Jessica

    Jessica, you are inherently wrong about capitalism, and apparently have no concept of how a business functions. A growing business WANTS to hire employees, as employees are an investment towards future profits. An employee who provides more profits for the company, and is thus more valuable, gets rewarded accordingly, or the employee will go find a job that does value his labor. However, when an employee has become far more expensive than the profits their labor provides, the relationship needs to be terminated for the business to stay afloat. The point of this article is that government regulations, such as Obamacare, make it more and more difficult to keep employees, as they are becoming a drain on the bottom-line. In contrast to popular belief, most employers would prefer NOT to layoff workers, because that means the business will be shrinking. Frankly, the only aspect of your comment that was accurate was regarding corporate welfare. But, corporate welfare is NOT CAPITALISM! IT IS SOCIALISM! Large corporations that have allied with the government have turned their back on the free market and capitalism. True capitalism generates enormous wealth and has created the most prosperous societies in the world.

  2. Pam
    November 15th, 2012 at 13:04 | #2

    @Jessica

    Of course corporations are interested in making money. That’s why they are in business. And you’re right that companies will automate whenever they can if it will save money. But the bottom line is that in order to employ people, it must first be profitable to do so. Too much regulation suffocates the process. Liberals seem to feel that they can move profits around so that everyone gets an equal portion, and that’s not possible. As much as I would love to, my skills do not command the salary of a brain surgeon or rocket scientist. That’s just part of life.

    Oh, and by the way. Ford didn’t take the bailout and seem to be doing fine. If I am inclined to buy an American car, it will be a Ford, not a “Governemnt Motors” car.

  3. Jessica
    November 14th, 2012 at 18:37 | #3

    The idea that businesses/corporations WANT to create jobs for people and that government regulations are suffocating them is the problem here. Business owners want to cut costs and maximize profits. They will fire people whenever they can if it will save them money. If coal companies could find a way to use machines to mine coal, they would get rid of every single coal miner without batting an eye no matter how great the economy is or how many regulations have been eliminated. This idea that people who run companies are “job creators” and that they want to make America better is a clever PR trick that has successfully deluded people. Corporations only care about their own bottom line. People are greedy and will take every advantage they can. This includes business owners, whether they run a small 10 person bakery or have a multibillion dollar corporation. When regulations cut into their profits, EVEN IF those regulations protect workers, business cry and moan and threaten to fire people. Yet when they are on the verge of bankruptcy, they happily accept corporate welfare. I didn’t see any big banks or auto companies during the financial crisis turning down federal bailout money or saying it was “invasive government regulation”. Capitalism is at its core a greed driven system that will never allow for equality. That’s why the government is necessary, so that it can reign in capitalism’s excesses when those excesses hurt people (example: basic labor laws- minimum wage, overtime, workmans’ compensation, etc.). Go ahead and call me a socialist or Marxist or “libtard” or “pinhead” but this is the reality that people need to accept.

  4. Pam
    November 14th, 2012 at 12:07 | #4

    First of all, I am no Obama fan and I’m still pi$$ed about the outcome of the election. I wasn’t really a Romney fan either, but saw him as a better alternative. That said, I find it difficult to believe that the companies listed above decided to lay off workers or close just because of the outcome of the election. Sure, Obama is going to be a nightmare for small businesses, and I’m sure that a lot of layoffs are likely, but these layoffs had to be in the works already, or they wouldn’t be able to announce them this soon after the election.

  5. JVernon
    November 14th, 2012 at 01:33 | #5

    I feel that hundreds of companies laying off workers so soon after the election is not necessary. Many of these companies are multi-million dollar firms and they have plenty of money. The CEO’s make huge bonuses each year, and these companies are very capable of finding ways to offset costs resulting from Obamacare. They are using the re-election as an excuse to lay off workers. It’s total BS and these greedy corporations are taking advantage of the situation.

  6. Kevin
    November 13th, 2012 at 06:53 | #6

    Bush was not oppressive via regulations to small businesses. I made money and saved money for my customers during the bush years.
    Im out of business under obama.
    Achievers are punished under obama.

  7. David
    November 13th, 2012 at 04:31 | #7

    @Nancy Smith

    I am a small restaurant owner and you aren’t. This explains your insane statement.
    I pay taxes on my personal income tax and I am being raped.
    So go start your own business and THEN come back. I am sure you will have changed your mind by then.

  8. jack lienneesh
    November 13th, 2012 at 01:04 | #8

    @Nancy Smith
    nancy you are a lib pinhead. I worked for lowes for a year and I have not been there for a time, however i still know some people there, as i was leaving today, i asked one person I know that is still employed there, what is lowes going to do going foreward with this health care mess. She told me that Lowes just announced 29 hours a week, max you can work after jan 1. they are hanging on but barely, they have reduced their inventory, some of the stores are losing money and they were just waiting until after this election to make a decision, the election is over and she said they have made their decision. Hundreds of stores are going to close next year, no hiring to happen no more full time.
    I am not making this up. this is what i was told from a person I know. and i have no reason to doubt them. obama cant blame this on any one but him and his regulations

  9. Banker928
    November 12th, 2012 at 15:59 | #9

    @Nancy Smith
    Obama has had 4 years and Democrats still give the excuse that it is not his fault but rather the previous administrations…. Give me a break, you re elected a president who has clearly failed his first term and now want him to do the same for the second…. Instead of electing the business man with 20+ years of experience in real world success you vote for a completely inexperienced novice in the business world who’s economic fundamental wotrldview is that of a socialist…. You are part of the problem Nancy, you and the under educated masses of village idiots who have no reference to what is going on in the world around them…. Who liken the election to something like American Idol. You have blood on your hands for the global instability that will follow Americas decline in power…. And you bear full responsibility for the casualties of the economic slowdown that will be continuing this decade.

  10. Doug
    November 11th, 2012 at 23:48 | #10

    Nancy, you and the rest of the Obamacrats are deluded. Every one of these companies knew at the end of the quarter, 31 Sept, that they would be doing layoffs. They held off so they would not affect the re-election of your God Obama. Now the rest of the country is going to pay dearly. Many more larger layoffs are missing here including Lockheed, ING and Experian.

  11. Nancy Smith
    November 11th, 2012 at 19:46 | #11

    This article is full of misrepresentations. Many of the businesses listed were already laying off, and many have avoided giving employees perks by using the part-time designation and hours, including WDW, and local restaurants. Small businesses don’t pay much, if anything in federal taxes, but they do pay state fees and have to comply with state regulations. But, once again, President Obama becomes the “scapegoat” for the economy busted by republicans and the wealthy, and that same economy is slowing recovering. Some of those layoffs are due to hate and racism, and those people will answer to their God, if they have one.

  12. Rick Smith
    November 11th, 2012 at 11:17 | #12

    Joe Deats has the answer.
    Fire all the Obamatards. They love socialism?
    Let them eat cheese.

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