The Unintended Consequences of Obamacare

With the economy inching out of the recession, it is more important than ever for businesses to have the ability to grow or contract in order to stay afloat and re-build infrastructure. But with the new Obamacare regulations rolling out, small business owners especially are feeling the weight of regulation.

According to the U.S. Small Businesses Administration, small businesses represent 99.7 percent of all employer firms, employ just over half of all private sector employees, have generated 64 percent of new jobs over the past 15 years; the list continues to daunting length.

Small business owners are being faced with a new cap on growth as a result of the clause in the Affordable Healthcare act that will require any business with 50 or more full-time employees to cover health care expenses for their employees as well as their families.

This has caused small business owners to seek out temporary and part time employees, who take longer to integrate into the company and therefore take longer to add value.

The entrepreneurial spirit is being challenged and taxed, but it will prevail. It may just take a little extra force of the will.

“Often, an increase in temporary or part-time workers signals an economic recovery, but experts aren't so sure this is the case today. If the trend continues, it will be yet another sign of a labor market that's unfriendly to most Americans, depriving them of both good earnings and job security,” explained Harry Holzer, public policy professor at Georgetown University.

Check out this editorial over at CNN Money: