Wednesday, November 14, 2012

Basic Economics

So... I just saw something about boycotting Papa Johns because they have stated they will need to increase the cost of a pizza approximately $0.15 to cover the increased healthcare costs imposed on them by Obamacare.

Um... is it really not common knowledge that when a company incurs additional expense, wherever it comes from, that it is relayed on to the consumer?

Gas prices rise = prices went up. High rates of theft = prices go up. Raw materials goods increase in price = price of final goods go up. Manpower costs increase (including health care coverage) = prices go up.

I don't understand why the surprise & outrage from people who supported Obamacare. Did they really not think this thru? Not even this very simple result of the legislation?

I mean, this is pretty basic economics. The money has to come from somewhere. In order for the companies to remain profitable & competitive, they must increase prices.


downsizers said...

This is only the beginning. Companies are already letting people go and reducing hours to part-time because of Obama Care mandates. I can only hope they choose the ones with Obama bumper stickers and the ones they know voted for him.

areyoukiddingme said...

This is why people are boycotting Papa John's:

Papa John's Obamacare Costs Are Far Less Than Price Of Free Pizza Giveaway

(Pardon my html issues if that didn't work!)

It's not that he can't afford it (note the free giveaway of pizza costs more than funding healthcare). It's not economics. Papa John's is a $100 million/year company. It's ethics. They can afford to sacrifice $8 million a year for healthcare, but they just don't want to.

Jennifer said...

Ditto AreYouKiddingMe. Most people would rather see the price of pizza increase a few cents (or not have 2 million free pizzas), than to see employees' hours get cut. I WANT these people to have health care and if the guy wasn't being such a jerk, I'd happily pay extra. It's a cop-out and he's blaming it on Obama being re-elected (and being a sore loser IMO).

'Yellow Rose' Jasmine said...

Since when do we get to tell private owners of business how to do business??? If they bow to some group of people that would rather Papa John's give more for 'free' government healthcare than doing the pizza giveaway that their private business has decided works for them in getting more customers, then what's next??? Patronize the businesses that you want to support. This is the best way to decide who succeeds in business in this world. Boycotts are typically not very effective and seem petty in the long run.

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