Dear Romantico: Instead of posting one-sided, narrow pictures, let's look at the overall situation and how an economy functions.
The CEO of Papa Johns estimates that Obamacare will cost his company between $5 - $8 million a year. Any worker who puts in over 30 hours will be eligible for such benefits. So the CEO said that many franchisees will inevitably not be able to absorb these costs and therefore be forced to reduce the hours of some workers (to under 30) or implement layoffs.
I'm all for Americans having accessible and free healthcare, like most other civilized nations. I also believe companies should have a sense of morality and not everything should be about the bottom line. However this is how economics functions. Businesses are in existence to make money and if they're plagued with extra costs, cuts are usually necessary to maintain the same profitability.
We live in a free, capitalist society. Everyone casts their ballot in an election. However everyone also casts a ballet with their wallet. And that's the great thing about capitalism. A candidate is elected who raises costs on a business, so the market self corrects itself (surely this will be much more widespread beyond Papa Johns). Now if you don't like that, don't order from Papa Johns. And if enough people stop giving them business to the point where they're making less money than if they took a $5 - $8 million hit, they'll revert their practices.
But don't get angry because small business owners (and yes Papa John's franchisees are small business owners) want to keep their business at the same profit level and maintain their same lifestyle. I'm not sure the % of profit an average PJ's makes, but 14 cents a pizza adds up perhaps even to the point where it could mean making money or loosing money for certain locations.
Updated On: 11/11/12 at 02:54 PM
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