Obamanomics grinds grimly onward, as CNBC brings word that on the day after the election, “Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California, and consolidate several business units to cut costs.” It was sweet of them to keep that under wraps until after the election, wasn’t it?
And that’s not even the dreaded “sequestration” layoffs, which Obama broke the law to convince defense contractors to keep under wraps until after the election. Those are yet to come. The upside to living in a banana Republic with Party-dominated media is that life is full of “unexpected” surprises, to use the word that has come to dominate economic news in the Obama era.
Another round of layoffs announced on Wednesday came from Hawker Beechcraft, which announced it would close facilities in Arkansas, Arizona, and Texas, resulting in 400 jobs lost, while another 170 jobs would be cut from corporate offices in Kansas and Arkansas.
Also on the day after the election, the CEO of the Papa John’s pizza restaurant chain, John Schnatter, told a small community college audience in Florida that ObamaCare would likely result in cuts to employee hours by franchise owners seeking to escape the law’s mandates by eliminating full-time positions, a move he described as “common sense” and “lose-lose.”
Schnatter also predicted ObamaCare would add between $5 million and $8 million to his business costs (which is fine, because he’s an evil rich guy who supported Mitt Romney for president, and we all know that truly patriotic job creators happily pay for increased business costs out of their own pockets) and that it would add 10 to 14 cents to the cost of his pizzas, which is a bummer, but under Obamanomics theory is totally unrelated to the process of extracting that “fair share” from idle plutocrats. Then he headed off to help out with a telethon for Hurricane Sandy victims and write the Red Cross a million-dollar check, but we all know that private charity is irrelevant, as only Big Government can save us from big storms.
The Huffington Post relays the thoughts of Fox Business Network corresponded Charlie Gasparino, who says Wall Street executives are “in mourning” after Obama’s re-election, because “they know that Wall Street is going to lay off a lot more people.” About 10,000 of them by the end of the year, in fact, if the New York state comptroller’s estimate is accurate. It’s not a big deal though, because those people are evil. Everyone knows that investment capital and consumer loans should be redistributed by selfless government agencies, not greedy bankers.
According to Gasparino, things could look up if “Republicans and Democrats happen to reach a long-term budget deal similar to Simpson-Bowles,” which could mean “the market is going to go through the roof” to “Dow 20,000, easy.” But he knows perfectly well that’s not going to happen. We’ll more likely get the usual: big tax increases right now, combined with vague promises of largely symbolic spending cuts at some indeterminate point in the future.