I have never stated to my WordPress audience the scale and scope of my business organizations yearly revenue and income. (See below.) I do not plan on doing that here in additional comments concerning today’s Supreme Court ruling on Obamacare. What is MOST significant — unless Mitt Romney and Republicans strip Obamacare from U.S. code — is that uncertainty has been dramatically reduced.
When a series of companies together form a massive scale in both revenue and income, they can overcome not only additional costs like those associated with Obamacare, but they can protect their employees from some of the loss of quality care we will see from Obamacare. Unfortunately for most, that will mean moving key employees offshore to other locales or just simply terminating their employment and supporting their previous work in friendly countries.
What will be the easiest to accelerate quickly is software development. Work that has been performed in my Atlanta contracting office will be “virtualized” and sourced abroad. This effort was alost complete before the court ruled. In addition, a company related to oil & gas that was purchased some three eyars ago, will be virtualized with U.S. technical and development work outsourced and offices opened closer to our Russian oil & gas operations.
Design and engineering work supporting manufacturing will either remain in Europe or be relocated to Singapore. This will have neglible effect upon wat remains in the U.S.
Unfortunately, this may have significant impact on my ‘hobby,’ the new 1911 Model gun plant. Those who read that post may recall it will use robotics to replace human hand work. Keeping the labor count down scrimming under Obamcare requirements may require hourly contracting to lower the payroll number.
Keep in mind it is not that we do not want to provide healthcare, but under the Obamacare regime it is preferable to move that coverage into one of the state sponsored exchanges. You as an employer are not going to be able to ensure your employees receive any higher level of care by carrying the insurance on your payroll. Obamacare is s system of mediocrity. One we will live with.
Income. Whew, this is a MAJOR issue with all of the former U.S. employees of what were once multi-billion dollar corporations we owned in America. It is these retied people who are pinched most in income at the moment. Right or wrong, Ben Bernake in his effort to inflate a recovery has lowered earnings from secure stable instruments to retirees. (0.3% interest versus 5% or 6%.) In addition, Obamacare penalizes these people not only in limiting Medicare benefits to them due to their icnome level, but it taxes dividend and investment income as regular income. For some, who will see the new 3.8% surcharge plus increased medicaid rate, lifestyle changes may be forced where individuals can no longer support and maintain the homes they have lived in for decades.
For some of these key people (former executives), we will support a ‘bridge’ for them to locate to more friendly climes, provided they have no objection to releasing their passports. I do not expect this number to be large, but then we were very large in America at one time.
Healthcare quality. Not unlike above, quality healthcare will be ‘bridged’ for elective procedures. Not only for us, but for a huge number of people the medical infrastructure we have been building in the Caymans will become extremely important and extremely profitable. Grand Cayman will become the Switzerland of the western hemisphere similar to quality healthcare provided to global citizens in Switzerland.
Whew…. I’ve a meeting to attend.
Take care folks!!!!!