We are governed by fools.

The unions supported Obamacare because they thought someone else would be paying the bills.

Reality struck as employers cut hours and employees to cut costs and reduce liabilities under Obamacare.

Turns out there isn't a magic money tree.

Oops.

Unions and politicians who cater to them act like businesses are just hoarding loads of money and won't share. Their prefered solution, as always, is more government intervention.

Of course businesses are going to do what is in their best interest, just like how politicians and unions do. Even if the business has the money, they're not going to hire a courier if it's going to cost them $100K a year. That's like passing a law that when people order pizza they have to.tip $25.... they just won't order pizza even if they can afford it.

It may sound good to tell voters that they'll make their boss do all sorts of good things for them. It just lands them unemployed since the benefits are no longer worth the cost of employing them.

I guess now that the bill has been passed, everyone is finding out what's in it.

Everyone has his own moment on The Road to Damascus. Even Hoffa and the Teamsters.

In a OT but related union commentary:

The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM) released a statement for the new producers of Twinkies. Part of it:

To avoid the same fate, the BCTGM encourages the two private equity firms that own Hostess Brands, LLC to change their approach and work with our Union and our members in a cooperative manner. This is their best hope for long-term success.

This is coming from the same idiots that refused to take a pay cut, on the advice of the union bosses, that killed their jobs in the first place?

Jim P you ever dream of a day when people stop pussy footing around thru press releases and just say on national television "go fuck yourselves you stupid morons"?

Jim P you ever dream of a day when people stop pussy footing around thru press releases and just say on national television "go fuck yourselves you stupid morons"? -- lujlp at July 17, 2013 6:44 PM

I do. And this comes close to that.

The unions were needed back when. But since then you now have OSHA, NLRB, every state's Bureau of Worker's Comp, SSDI and the rest of it that is so far overreaching what the unions can do.

And another side note on Twinkies, They are now smaller than they used to be. The calorie count went from 150 per to 135.

Yep, all my part time workers have now been screwed over by Obamacare. I can't afford $72,000 to offer insurance to 14 part time employees, so down to 30 hours they went. 30 hours is not full time. Total bullshit.

Hey, don't forget grocery stores. One Publix nearby had just 23 fulltime workers - and ~200 part-timers.

The stupidest thing you can do in the USA is hire a worker. I can't believe my Credit Union opened more branches. It cuts their ability to undercut banks.

"... The impact is two-fold: fewer hours means less pay while also losing our current health benefits."

Plus those workers will have to buy more expensive individual insurance or pay a fine.

ut not to worry, I have no doubt Congress will fix it - by increasing minimum-wage by $3 per hour.

And I have no doubt business will fix that by automating and outsourcing even more.

I am always amused when unions chide business for looking out for their own interests, as if unions aren't looking out for their own interests.

Who'd of thought that a massive government intrusion, developed behind closed doors, by people with no medical training or expeience, adding thousands of regulations, and requiring thousands of new government employees would ever adversely affect health care costs and availability?

I'm shocked, I tell you shocked!

"Turns out there isn't a magic money tree."

But the belief that there is such a thing is the central tenant around which their lives are organized. It permeates their every thought, from the moment they wake up in the morning to the moment they go to bed at night. So if you try to make the libertarian argument to them, it will go one ear and out the other -- you may as well be speaking Sanskrit. It just sounds like noise to them. Their proposed solution to the problem will be to amend Obamacare to add in special privileges for members of their tribe.

I loved posting this to my friends facebook wall. He was an AVID supporter of ObamaCare even though he admitted that he had no idea what it actually meant. He's a hardcore Liberal, too. He and I had some pretty heated debates about it that almost cost us our friendship.

All I said was "I told you so."
To my surprise, he actually said "I can't believe I'm saying this but you were right."
I'll admit it.... I'm feeling pretty smug right now.

Comrades,
We must reform the reform!

Not a big fan of union behavior, especially their coziness with the mob, but when they see executives making millions, flying around in a private jet, getting bonused while workers lose their livelihoods, yeah, it seems like there's a money tree.

Who's allowed to shake it is what the fight is about.

...when they see executives making millions, flying around in a private jet, getting bonused....

Meg Whitman helped drive the stock price of Hewlett-Packard up 25% in her first year on the job.

Marissa Mayer helped drive Yahoo's stock price up 70% in her first year on the job.

Ron Johnson was fired as CEO of JC Penney when his marketing strategy failed and sales tanked ... and the stock price nose-dived.

Bob, the new unionized employee in the Assembly Department, does not have the same effect on the company's valuation as the new arrival in the C-Suite.

Wall Street does not value the stock according to Bob's resume or how Bob plans to concentrate his energies for the coming year; nor does it panic when Bob decides to phone it in.

High-level executives have a greater influence on how the investment world sees a company and how a company performs. Unions are attempting to collectivize the workforce into a single entity with as much impact as those executives and get it paid accordingly.

However, that collectivized entity rarely develops and implements strategies to increase market penetration or drive down costs. It merely demands that if the company has any money, the union should get it.

Kinda like a teenager demanding that, because he mowed the lawn, Mom and Dad should spend Dad's bonus on buying Junior a new car instead of fixing the leaky roof.

I think stock price increases are wonderful for stockholders.

The BEST thing about being a stockholder, though, is being an EXECUTIVE stockholder, because you're holding preferred stock, not common stock.

Then, when you tank the company and take your $24 million golden parachute and the company goes bankrupt, you ALSO get compensated early as a special class of creditor!

Common stockholders and employees can just suck it. What did they ever do but provide funds and products and services to make the company profitable in the first place?

Losers, the lot of 'em.

I think stock price increases are wonderful for stockholders. ... Then, when you tank the company and take your $24 million golden parachute and the company goes bankrupt, you ALSO get compensated early as a special class of creditor!

Stock price increases also help the corporation. Higher stock values provide financial leverage and provide ways for the company to raise capital without borrowing - as well as providing collateral for borrowing money.

Higher stock prices also benefit ESOP plans and pension funds invested in that stock.

Stock analysts value companies based on what management is doing, how sound the company's strategy is, and the expected demand for its products (existing and new). This provides the non-experts and non-insiders with a holistic view of the company. Private companies don't have to publicly reveal as much and can often be an mystery to investors (private companies still sell bonds) and employees.

If there's nothing left, the preferred stock holders also get nothing. In the event of bankruptcy, preferred stock holders must still wait in line behind creditors and bond holders for payment (unless they're unions holding stock in Chrysler and Obama decides they get to be at the front of the payout line).

There are some other limitations to different classes of preferred stock, including, depending upon the class of preferred stock, redemption value limitations, voting, and limitations to dividend payouts.