This transcript is automatically generated
Look at that -- pressing shark.
Shows what happens after recessions happens to employment again and again hiring recovered after about two years.
But the current recovery it's the Red Line is much slower much weaker.
Well one reason is that employers now face thousands and thousands of pages of rules.
And it makes -- scary to expand because no one even understands.
What those laws say even the lawyers who specialize.
In the nor understand that.
Betsy McCoy has heard complaints about that for businesses she's a health care expert has been following Obama's biggest new regulation.
She reads it so we don't have to.
Bob bloody is a businessman who makes the months fan.
Yes well actually much bigger and fancier ventilation systems that -- -- like.
Restaurants used to suck away bad smells and gases that might blow you up.
It's up you make -- money.
We are making money and in spite of everything -- -- still expanding but it's more -- called us in this environment because of HR rules.
Human -- is rules you know which don't make any sense really even for the employees.
Uncertainty about taxes and other regulations that are coming into the marketplace for example Department of Energy wants to regulate.
Fan motors over five horsepower.
When we're already -- -- highly competitive industry are.
They they say they want to regulate them to make the exhaust fans more energy efficient they say it's necessary to carry out the purposes -- -- any one of the EP CA whatever that is.
To conserve the energy resources of the nation.
That's what theater and my costs the out what does the industry just wanna make money.
We are constantly testing fans there's an industry organization has scientific approach to this and you're already trying to make a more efficient because it'll help you sell -- absolutely.
And I -- talking about free -- John.
But they just don't get -- -- think totally don't understand it and you've been in business for 35 years you've built your company from not think the now 700 employees.
It was different 35 years ago absolutely I mean compared to today it seemed like there was no regulation that then certainly not at the federal level.
-- we -- some state things we had to deal with.
Now the federal government's going to be engaged in our health care after 25 years -- little self insured inefficient.
We don't need their help let's.
About that I have my own copy of obamacare that apply what happened about not mine is much fresher than years because I didn't read mine but.
You've read that and what.
What do companies tell you -- -- all -- our mandate is one of the most trap.
In parts of -- this employer mandate sets that every employer with fifty or more full time workers have to provide health insurance.
And not just any health insurance it has to be the one size fits all government designed planned.
Which will cost about twice as much as what most employers currently offer.
So a lot of companies who have been -- turnover they have a cheap plan these are mostly young people.
They're gonna have to get a -- -- well let me explain what they're gonna do.
Many insure many other companies are going to simply stop offering insurance McKinsey and company did a survey and found that over a third of employers.
Are already considering not offering ensures that -- actually is cheaper it's just a couple does -- -- here's here's the point this.
Employer mandated plan -- a dollar 79 per hour every now work.
To the cost of hiring a busboy or I'll wait frissora receptionist.
Actually -- the cost of hiring any full time employee but when you're hiring neurosurgeons a dollar 79 doesn't matter.
When your hiring entry level people it really does 2000 bucks a year journalist so employers.
Can stop offering insurance and pay a penalty and they will and -- -- already have said they well that's right.
So here are people who were getting insurance on the job and how to full time job now there are received and reported -- your workers filled.
We're gonna try to continue -- our work covering our workers and -- self insurance but it's gonna raise the costs for us and for the employees.
So you may expand less hire fewer people absolutely expand with new capital that the government -- your capital you expand less.
And this drives some people.
Offshore you say the components you buy motors Barings filtration all those manufacturers have moved offshore.
Many of them had ever -- most in this in this particular industries and if you think about it.
America should be able compete regardless.
Of labor costs with any country in the world because modern manufacturing uses machine tools.
But if you put enough regulation and enough trouble.
It forces he says about the cost of the American worker it's just the confusion no I don't think it's a cost the American worker at all.
Of course large unionized operations yes -- that's a big issue.
But for normal manufacturing modern manufacturing it's highly capital investment intensive.
And labor has to be highly skilled and now we have the most skilled labor in the free world.
Not Betsy this law you tell me says is that the employee -- not be asked to cover more than 9%.
Of their income in premiums would.
0% -- their household income but I would tell nobody about this because this is gonna be a nightmare for you.
You literally as an employer will have to ask every employee what is your husband or wife make.
-- emotional and our household income not just your employees' income.
So then if you're hiring somebody you may want to hire somebody whose wife -- husband makes more money.
So that you can ask them to contribute more to their health insurance this is eight night -- And that what I would think would be the only hope for health care is if you get these health savings accounts these high deductible plans for the employees.
Have a little more skin in the game and make some of their own decisions.
They are -- delighted they're not officially abandoned here no but the way the law is structured it's going to be almost impossible to get one all the plans are -- -- be the same.
And the plant has to cover things like alcoholism treatment drug treatment psychiatry.
Both to get another politician and there they may band conscious -- you know you're.
Raising the president really interesting because women were told -- Contraception is guaranteed here it isn't.
This law says that your plan will include what ever the current occupant of the White House says you -- -- -- your health insurance.
And the next occupant of the White House may say something completely different.
Who wants the president making all those decisions for you.
-- they're trying to help Foster trying to protect people.
Well I think the central problem is that individuals and and small companies make much better economic decisions in any government ever could and the government says we're gonna spend another billion dollars here in -- billion dollars -- -- We've got to get away from this so that business grows faster than government.
Or will have higher unemployment.
We'll have more stress on the middle class and that's exactly what you've seen for the last four years.
The moment that governments grown faster than business thing -- thank you Betsy thank you propped up next.