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re: The cost of Obamacare... supporters of it.. please feel free to chime in
Posted on 4/12/14 at 1:52 pm to the808bass
Posted on 4/12/14 at 1:52 pm to the808bass
quote:Or they would pass the costs on to customers, especially seeing as people would still buy clothes. Price would go up, and as this is a market that you can actually model using the supply / demand model (unlike health care) price would go up and demand would go down. There would be more unemployment.
Retail currently makes about a 4-6% pretax profit margin. If you added back healthcare costs to that, Medicaid costs would increase a bit as retailers close and Medicaid picks up the newly unemployed.
Now as to these newly unemployed swelling the medicare ranks they were allready uninsured.
This post was edited on 4/12/14 at 2:07 pm
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Posted on 4/12/14 at 1:57 pm to MIZ_COU
Retailers... consist of a lot more than clothing stores. And you left off service.
Posted on 4/12/14 at 2:09 pm to MIZ_COU
quote:
Or they would pass the costs on to customers, especially seeing as people would still buy clothes.
Retail demand is a bit inelastic these days, I would guess. You can always raise your prices. But there's no guarantee that your customers will pay it. Charging $2 more for a shirt means people buy fewer shirts. Not that no one buys shirts. If the retail industry shrank by 10%, the economy would tank and it wouldn't matter if Medicaid grew or shrank.
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