Obamacare: Running the numbers
Keep three things in mind: a.) these write-downs are not reflected in any CBO estimates of the cost of funding health care reform; b.) in order to protect stock prices, these companies have a huge incentive to understate the costs they actually face; and, c.) the true cost of health care reform is equal to taxes raised from American taxpayers plus decreased wealth accruing to American taxpayers.
According to the article:
AT&T will lower earnings for this year by $1,000,000,000.00 (one billion dollars) based on its employment of 281,000 workers. The write-down equates to $3,558.00 per employee.
Caterpillar (the company Obama duplicitously claimed would hire back all of its workers following The Stimulus) will reduce earnings by as much as $90,000,000.00 (ninety million dollars) this year based on its employment of 75,000 team members. The per-employee equivalent is $1,200.00.
What do these filings hint about total costs that were unrecognized/unreported by CBO and Congress?
The Department of Labor states that Total Private Employment in December 2009 amounted to 107,067,000 American workers. (Since "public" employers/employees seem to think that they are immune to economic impacts on the private sector, we exclude them from this analysis; otherwise, the following analysis would be even more staggering.)
If we use the AT&T cost estimates as a model for the impact of ObamaCare on all private sector employers, we see a cost in 2010 of $380,944,386,000.00. (That's nearly four hundred billion dollars, folks!)
If we choose the Caterpillar analysis, the 2010 impact drops down to a mere $128,480,400,000.00. (That's only one hundred-thirty billion dollars, comrades!)
Spread across the American population of 310,000,000 souls, Caterpillar's model indicates that America's wealth declined by $1,229.00 per citizen this week.
I can hardly wait ‘til next week....