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Obamacare will cause more loss in American jobs

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Posted: Wednesday, December 26, 2012 12:00 am

According to www.outsourcing-law.com/tag/obamacare, the new Obamacare legislation does not apply to services rendered outside the USA. The universal health care insurance mandate of Obamacare cannot apply outside the United States. In addition, on any given month, the mandatory health insurance coverage does not apply to U.S. citizens residing abroad (under Section 911(d) of the Internal Revenue Code) or in U.S. territories and possessions.

So what does this mean for Americans and jobs in United States? It means Obamacare will impact and reduce American jobs and increase globalization and offshore outsourcing.

Why is that; wider gap, more labor arbitrage. By increasing the costs and regulatory burdens on employers hiring individuals lawfully in the United States, the Patient Protection and Affordable Care Act (Obamacare) widens the gap between U.S. labor costs and foreign labor costs. Quite literally, it is built upon a tax on businesses and a tax on individuals. Accordingly, it is predictable that Obamacare will accelerate offshoring and globalization of talent pools of enterprises large and small.

According to this company, the costs, complexity, bureaucratic burdens and overhead, and proliferation of employment litigation associated with mandatory health care rules will inspire entrepreneurs to outsource and offshore everything possible. Obamacare will accelerate the offshoring of both low-level functions (such as non-voice customer relationship management, credit card claims processing, mortgage origination and administration, and other routine business functions) and high-level functions (such as R&D, market research, accounting and tax administration, cash management, etc.).

Darrell Baumbach


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