TWO PLUS TWO EQUALS ASTRONOMICAL
PROBLEMS
According to the radio, the Affordable Care Act (that’s
ObamaCare to the uninitiated) will cost each employer of more than 50 people
$1.79 per hour for each employee next year. That explains why major employers
are planning on laying off or reducing the hours of workers to make them
part-timers. Doing so will keep some of those companies in business.
Do a little simple arithmetic and the enormity of the
entrepreneur’s quandary emerges.
Multiplying 40 hours by 52 weeks of work and vacation and
the product is 2,080 hours of paid work. Assign an extra $1.79 per hour and the
boss has to lay out an additional $3,723.20 a year to overhead for each
employee. For each 50 employees, the additional cost of business is $186,160
per year.
That’s 186 thousand
dollars that reduces profits. For each 50 employees.
So it does not take
a Bill Gates to figure out that a small businessman cutting back one employee to
49 makes a lot of sense. Or cutting the wager earner’s hours to make him or her
part time. For the employer with hundreds in his workforce, the problem is just
as big. For national firms, the problem is a major expense and concern, maybe
even a game changer when competing with rival corporations.
To a government that
can’t balance a budget, that can’t pay for its obligations even though it takes
in some two and a third trillion dollars a year such problems for those
responsible for producing an economy that is supposed to pay for government
seem miniscule. The federal government is a multitrillion dollar affair; does a
trillion dollar private enterprise even exist?
And isn’t that the
summation of the burden our nation must face?
Federal spending was
more than three and half trillion in 2011. The deficit was just under one
trillion, 300 million dollars.
Our – and that means
for each and every man, woman and child in these United States of America –
debt is approaching sixteen and a half trillion dollars.
Whoa!
How much is that? All
kinds of illustrations are available from people who care. Just look at one way
of looking at the enormity of just one trillion. Convert that into time.
Someone has
calculated that one trillion seconds – that’s one sixtieth of a minute, 3,600th
of an hour, 86,400th of a day – equal 31,546 years.
To pay off our
national debt at one dollar per second would take more than a half million
years (504,736 years for an even $16 trillion).
That can hardly be
imagined.
It’s something like
trying to fix one’s mind on how close is the nearest star? That star is Proxima
Centauri, which is 4.3 light years from the sun, which is 93 million miles from
the earth. A light year equals 5.88 million miles, so that star is some 25.2
million miles beyond the sun. Thus, the star is 118.2 million miles from earth.
Light travels at 186,282 miles per second. Well, home calculators don’t have
enough display space to do the math. Nonetheless, since a trillion is one
million millions it would take more than a trillion seconds to travel that
distance at the speed of light, or more than 32 thousand years.
Look at it another
way. Total gross national product for the United States in 2011 was just over
15 trillion dollars, which is less
than our growing national debt. Each year, the government is adding
one-fifteenth of GDP to the debt with such deficits exceeding a trillion
dollars.
If the enforcement
of ObamaCare is going to convince employers they need to cut back on employees,
then they seemed destined to reduce profits. Profits mean taxes. Taxes mean
federal and state and local revenue. Less revenue means either more debt or,
heaven forfend, less government.
Ruining the economy
is not the way to shrink government.
But shrinking
government may be the only way to improve the economy.
That is easy to say.
But the cost in money and in effort is huge. Huge doesn’t really convey just
how immense, enormous, gigantic, gargantuan, humongous a problem lies before
the country, its citizens, its seemingly incapable government, the one that got
us into this chasm in the first place. Even if policies are adopted that grow
the economy can they be good enough to generate enough hope for eventual
governmental solvency?
Hope won’t do that.
And change has yet to be demonstrated.