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  1. Well, yes, one can still be more cost effective with less productive workers when there is a large disparity between the well paid and underpaid. When two underpaid people are less productive but cheaper than one well paid person, you go with the two people. This reminds me of the period of pre-1990s before productivity became an absolute necessity because of global competition and technology. In those days companies were routinely over staffed to ensure the job got done. AT&T comes to mind.

    Then came the 1990s slogan more with less, less is more. Once the competition got fierce from overseas, companies started choosing higher paid quality workers over quantity since they only had to pay an increment more to keep up. Giving vacation and sick benefits as part of the compensation package was part of that required offering to get the most qualified worker. The post 1990s paradigm may be coming to an end. Companies may find that to be cost effective, it may well require hiring two part timers instead of one full timer. From the company point of view, if one full timer gets sick they still have to pay the day’s wage with no output, whereas if one part timer gets sick, the other person can work the extra 4 or 5 hours with no pay for no work for the sick person.

    The voters will have to face the hard facts as the IRS discovered, the minimum cost of an ObamaCare approved healthcare plan is $20,000 a year. This means a $5,000 increase per year on EVERYBODYS existing plan in 2014 when ALL health insurance policies must conform to ObamaCare’s new set of coverage requirements. That $5000 has got to come from somewhere. For some this means no wage increases for years meaning they will fall behind due to inflation. For some this means paying an increasing share of the insurance premium up to the mandated affordability limits. And if the employer can’t get adequate cost containment due to the affordability limits then for those this means losing their full time job and being forced to take two part time jobs (at lower pay) working combined longer hours per week to earn not only what they had before but extra to pay for that extra cost in coverage.

    Ignorance and apathy have a price, elections have consequences.

    Comment by dscott — February 7, 2013 @ 3:20 pm

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