Small Business Health Care Mandates in US - Will it Cause Offshore Outsourcing?

Government policy always affects businesses and thus, our economic condition in the United States. It seems that government wishes to mandate that all small businesses have health care benefits for all their employees, but is this a wise choice? In the 2008 Presidential Debates we have the candidates arguing if Health Care is a right or a responsibility.

One candidate calls it a right, because we are a Wealthy Nation and therefore can afford to provide health care to our people. The other candidate calls this one more move towards socialism and calls health care insurance and responsibility.

So, those looking at the economic impact of all small businesses providing health care due to government mandates have set off alarm bells. They question the government's right to mandate such things and ask if this will be the death nail of small business.

You see, many small business owners do not have health care, those that have it, never use it, as they are too busy trying to make ends meet in their company and really have no time to go to a doctor. Further, they say that many of their employees are young and do not want health care insurance, but would be glad to take a bonus or have a beer.

One wise group of thinkers asks; "If the US Government mandates that all small businesses provide health care, then it will cause large businesses to check to see if they do and are
compliant, if not they will no longer outsource work to them, thus, they are more likely to outsource offshore. This effectively kills small businesses in our country and sends more US dollars overseas."

This is an interesting side discussion, but quite relevant because it shows the extreme problem with government controls and the laws of unintended consequences. The health care system is broken, health care insurance is too high, so is medical costs, so rather than fixing the health care system, the government wishes to mandate small business to participate in it and continue growing the façade.

It is definitely time to expand the discussion and allow everyone to see all the issues on the table before we continue such a dialogue on the issue of Universal Health Care or mandatory health care insurance for all employees.