ObamaCare’s War on Young Entrepreneurs
Rolling Stone might think differently, but the economic reform every Millennial should be fighting for is the repeal of Obamacare
By Paul Dietzel, Founder of Anedot, Inc. and Candidate for Congress (LA-6)
Obamacare is rolling back the progress of the Internet—and that’s not a cheap jab at healthcare.gov.
Entrepreneurship for young Americans in the last decade has flourished thanks primarily to the Internet. As the 27-year-old founder of fundraising software company Anedot, Inc., I have seen the advantages of apps, telecommuting and e-commerce. The Internet fundamentally lowered start-up costs for many entrepreneurs—that’s one reason we have Facebook, Google, Uber, AirBnb, Amazon and dozens of other companies.
But Americans with fresh ideas looking to start new businesses are facing hurdles that will dramatically increase start-up costs and cripple future American ingenuity. Obamacare’s skyrocketing insurance premiums have become a massive barrier for young entrepreneurs who must buy their own healthcare.
Rolling Stone might think differently, but the economic reform every Millennial should be fighting for is the repeal of Obamacare. No law in recent memory is more slanted against young entrepreneurs than Obamacare.
A study from American Action Forum calculated that the average 30-year-old, healthy, non-smoking male will see his premiums rise more than 200% thanks to the President’s Not-So-Affordable Care Act. Another study by Oliver Wyman concluded that premiums will increase, on average, 45 percent for those ages 18 to 24 and 35 percent for those ages 25 to 29.
Millennials – especially those who are not on their parents’ plans – are seeing thousands of dollars in added annual costs for healthcare. These increased costs are draining the hard-earned capital of entrepreneurs and creating a disincentive for any entrepreneur wanting to bring a product to market. This ultimately leads to less competition, weak technological growth and stalled job creation, all three of which America desperately needs.
Every extra dollar small businesses spend on health insurance is one less dollar they can spend hiring new employees or investing in new technologies.
At a time when structural youth unemployment is the highest it has been since the Great Depression, it is absolutely abhorrent for Washington to target young Americans. And that is what it is: targeting.
President Obama and the Democrats designed Obamacare to raise costs on all Americans, particularly young Americans. The law contains ratio-based price controls which force insurance companies to charge younger Americans more. These policies load up the costs on younger, generally poorer, Americans.
In short, Obamacare places the burden of subsidizing the world’s most expensive healthcare system on the backs of younger Americans.
From an entrepreneur’s perspective, this not only means that your personal insurance will increase, but it also means the costs are rising for your employees as well. Whether or not a business owner provides insurance for his or her employees, the higher cost of living takes away from the wages and benefits they receive.
The President’s healthcare law means fewer jobs, lower real wages and fewer new businesses, for all Americans. Dramatically higher premiums have become a barrier to entry for the small start-ups which were thriving in the age of the internet.
My hope is that young entrepreneurs will stand together to remove this law. That’s one of the many reasons why I’m running for Congress. Not everyone pays attention to politics, but I hope others nationwide will join me in the fight for more affordable healthcare for young Americans, all Americans.
Paul Dietzel is the founder and CEO of Anedot, Inc. and a Republican candidate for Congress in Louisiana’s 6th district. Learn more at PaulDietzel.com.