Robert Malone
Many of you have made an investment in a bad stock. After investing in the stock, it falls in price.

Instead of selling at that time, you continue to hold hoping that the price will rebound.

However, the price continues to fall and one day you find that the stock is worthless. In hindsight, you recognize that the stock was a bad stock and it should have been sold on the initial price decline.

Obamacare reminds me of a bad stock investment. This legislation has hurt President Obama in several ways.
Firstly, the passage of Obamacare made many Americans question President Obama’s judgment. Why would the President spend so much time and energy on healthcare, which was of secondary importance Inflatable bounce house to most Americans. Conversely, why wouldn’t he spend most of his time and energy on the economy, which was of upmost importance to most Americans. Americans wanted jobs and not healthcare. One unemployed worker commented on CNN during this period, “give me a job and I will buy my own health insurance.”
There is a principle in management called the Pareto’s Principle or the 80-20 Rule. The principle states that only 20% of the problems or issues a manager faces are really important. Accordingly, that manager should focus 80% of his time on that 20% which really matters. As manager of the nation’s economy, the President must be able to use wisdom to discern the important things from the unimportant.
Secondly, the passage of Obamacare revealed how little the President knows about business. Businesses exist for one simple reason –to make a profit for its owners. Businesses make a profit by maximizing revenue and minimizing cost. Businesses will be hurt under Obamacare because their healthcare cost will increase. Businesses must buy more expensive government-approved health insurance for their employees or pay huge penalties.
Recently, several companies have warned that their earnings will plunge under the new healthcare law. AT&T warned that the legislation will costs it $1 billion, Deere & Co. indicated that the legislation would cost it $150 million.
The healthcare law has also created uncertainty for employers. Dennis Lockhart, President of the Federal Reserve Banks of Atlanta recently reported:
In addition to slow and uncertain revenue growth, employers are frequently, citing a number of other factors that are impeding hiring. Prominent among these is the lack of clarity about the cost implications of the recent healthcare legislation. We’ve frequently heard strong comments to the effect of “my company won’t hire a single additional worker until we know what health insurance costs are going to be.”
President Obama continues to ask companies to hire unemployed workers. However, his signature legislature is a major impediment to hiring new workers.
Thirdly, Obamacare revived the Republican Party. After the 2008 Presidential election, the Republicans were defeated and in total disarray. Obamacare was passed on a party line vote. No Republicans voted for the passage of the bill.
Republicans criticized the healthcare legislation on many fronts. For example, they argued that it would be too costly and bankrupt the country. Additionally, they argued that the individual mandate was unconstitutional. Lastly, they argued that the legislation would hurt hiring because it would raise the cost of health insurance.
With Obamacare, President Obama handed the Republicans his head on a plate. He gave them that one issue to hammer him over the head with.
In fact, the Democrats lost the House to the Republicans in the 2010 mid-term elections because of Obamacare. In many of the congressional races, the Republican representatives ran on one issue. If elected they would vote to repeal Obamacare.
Lastly, with the passage of Obamacare, President Obama lost support of the independent voters. Independent voters cannot be ignored. They make up approximately 37% of the voting population. The independents become disillusioned with President Obama because of his focus on healthcare legislation at the expense of the economy and jobs. In addition, they disliked the backroom deal making that was used to pass the legislation. The legislature process exposed President Obama as a partisan politician. Independents had voted for him because he had promised to get rid of partisan politics and to work with the Republicans to get things accomplished in Washington.
According to a recent Gallop Poll, only 37% of the independent voters feel that President Obama should be elected for a second term. On the other hand, 57% of the independent voters feel that President Obama does not deserve a second term.
Sometimes politicians have to admit that they made a mistake with a decision. The American people will often forgive that politician when he changes course. However, if that politician stubbornly continues with that mistake, voters will usually punish him at the next election.

Robert Malone is a 1980 Graduate of Morehouse College in Accounting and Finance, a 1982 Graduate of the Wharton School of Business Graduate of the University of Pennsylvania in Entrepreneurial Management and Corporate Finance, a 1982 thru 1985 Worked for Peat, Marwick & Mitchell-Houston Office in Tax Dept.
From 1986 to 2005 Robert Malone CPA Firm, specializing in small business accounting, taxation and consulting from1986 to Present- Owner of The Malone Group- Real estate ownership and consulting firm. Provide construction and asset management services.
Designations CPA and CFP