Private Enterprises Doing More With Less

Monmouth Medical Center has announced 51 layoffs because its largest customer, the government, only paid $8.7 million of its $14.5 million bill.

Those being laid off will receive severance pay and benefits based upon their length of service to the hosptial. After their severance runs out they can make a claim for the unemployment insurance that they have been paying for. I hope the insurer has the money to pay those claims. There have been news reports that the insurer has been using the money for other things and has kept inadequate reserves to pay claims. The insurer is the same enity that didn't pay the hospital bills that caused the loss of their jobs...the government. If the management of a private insurance company did that they could be put in jail. In New Jersey they get re-elected.

Not to worry though.

If the unemployment fund runs dry, the government will raise premiums taxes to cover the claims. This will cause more layoffs and more claims which will cause more taxes which will cause more layoffs which will cause more claims which will cause more taxes which will cause more layoffs until the music stops.