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Monday, November 16, 2009

Small Biz Health Care Daily: Health Care and Start Ups

According to the Post-Bulletin, a Minnesota business owner named Jim Gander does not think that the health care measure winding through Congress will affect his 26-year-old, 125-employee business.

However, Gander is worried “that the proposed legislation will snuff out start-up companies in the crib.”

Gander is incorrect and correct.

He is wrong to assume that the big government health care mess being pushed through Congress will not affect his firm. After all, he will not be able to avoid the fallout from less competition in health care coverage, and the increased costs that come with more government mandates, regulations, programs, spending and taxes, not to mention less competition and fewer choices.

However, Gander is correct in noting that such costs would raise the cost bar much higher for start-ups to get off the ground. Snuffing out start-up firms is one of those quiet, but economically deadly costs that lurks around the health care debate.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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