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The Law of Unintended Consequences: How Healthcare Reform Will Effect Small Business

Healthcare reform—that thousand-plus page monster that, according to House Judiciary Chairman John Conyers (D-MI), is pointless to read—is going to have a great and terrible impact on entrepreneurs and from that epicenter on their businesses, their employees and the economy as a whole. According to Columbia business professor Rita McGrath, the reason for this is that entrepreneurs will change the way they do things, not so much to thrive but to cope. She writes that “the plan currently being sped along by the House Democrats is going to fundamentally alter what [economist William J.] Baumol called the ‘structure of incentives’ that shape how entrepreneurs allocate their energies.”   The Structure of Incentives What are these incentives? They are the things that make going into a particular business worthwhile. According to an articl...

By Charles M Cooper ยท July 29 2009 small business, obama, healthcare reform, pelosi. rita mcgrath

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