Papa John’s owner John Schnatter has been one of the most vocal opponents of the Affordable Care Act, affectionately known as Obamacare. And to prove how consumers will be affected by this legislation Papa john is threatening to raise the price of a pizza by $0.11.
As many have noted already, the “free” pizza give away offer that Papa John’s is currently running will cost the company between $24 and $32 million in profit this year, which far exceeds the cost of supplying health insurance to his employees ($5 to $8 million). But John Schattner might also want to consider that by offering health insurance the Papa John’s corporation will experience more productive employees who miss less work time, which will further diminish the expense of providing insurance.
But the one thing I really don’t understand is why this is big news. Reports show that 90 to 99 percent of large businesses offer health insurance. Does anyone think that these companies are not passing along the costs of providing their employee’s health insurance to the consumer?
The reality is that companies are always trying to maximize profit, so consumers are forced to pay for things we may or may not like with every product we purchase. If you buy an American car a portion of your money goes to support the UAW; if you use electricity a portion of your money goes to support green energy; and if you buy a pizza from Papa John’s a portion of your money goes to pay their tax bill which supports Medicare, Medicaid, Defense, NASA, education, oil subsidies, and Big Bird.
In the end, when your company has a profit of $87 million and you whine about providing a benefit that nearly every American wants and needs, it doesn’t make you look like a virtuous patriot. It makes you look like a jerk.