We all understand Obamacare will dramatically raise costs for businesses that suddenly have to choose between buying expensive healthcare plans or paying a significant fine to the government. One major way that companies can cut costs to keep the bottom line the same is firing employees, but that’s not the only way. Faced with slimmer profits, businesses can and will raise the costs of their products, passing along the higher costs to you.
When everything suddenly becomes more expensive and your paychecks stay the same, money is effectively worth less, which is inflation. For those on fixed incomes and for everyone in the middle class and below, inflation is one of the most difficult economic conditions to deal with.
It’s like getting a pay cut and a new tax all rolled into one nasty package. Obamacare will artificially inflate the value of the dollar by making everything more expensive, and that’s going to have a ripple effect with all kinds of unfortunate consequences.