Public healthcare could spur Silicon Valley innovation and create jobs

Public healthcare could spur Silicon Valley innovation and create jobs

Summary: Public healthcare could reduce startup costs and increase the number of small innovative companies leading to lots of new jobs...

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I was looking at a survey of small businesses and whether they would cancel their healthcare plans if public healthcare were available.

VerticalResponse, which offers surveys and email marketing services, polled 831 small US businesses about the effect of public healthcare on their business.

Theron Kabrich the CEO of The San Francisco Art Exchange, was one of the small businesses surveyed. He made an interesting comment and it is one that is very applicable to Silicon Valley.

“A public offering of healthcare unburdens small businesses and entrepreneurs alike, as it allows them to focus on core parts of their business such as innovations and new products. It also removes an unfair competitive advantage for small businesses when trying to attract the best employees, and levels the playing field.”

Will Silicon Valley startups cut their current healthcare plans? They might.

High healthcare costs are a large burden for Silicon Valley startups. The availability of public healthcare should lead to lower costs for startup companies and make more capital available for investment in development.

VCs might demand a provision that their startups not offer healthcare plans. But would this harm recruitment?

Probably not because startups have fairly young staff and the attraction is not getting a safe job with benefits, but a chance to build a valuable business.

It'll be interesting to see how the availability of public healthcare affects Silicon Valley businesses. If it helps them succeed by lowering their startup costs then this will lead to lots of new jobs.

Topics: IT Employment, CXO, Emerging Tech, Health, SMBs

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8 comments
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  • California is Bankrupt ... ??????

    Barry Sorento is bankrupting the USS of A
    $7,000,000,000,000 TRILLION in debt and
    it is more than a TRILLION more making
    it $8,000,000,000,000 and unemployment
    is the highest in 25 years!

    INSANITY!

    The dollar is ranked 48th in the world now
    Oboma is a genius at destroying the economy!
    Use_More_OIL_NOW
  • Your understanding of economy is a ZERO

    "make more capital available"

    The health care expense is still there. If it's not paid by small business owners then it must come from other kind of charges on the tax payers. It's a zero-sum game. Government doesn't generate money. Government just collects money and then re-distributes it, which means if you don't cut the overall cost you will not have "more capital available" at the end of the day.
    LBiege
    • So welfare fraud in the BILLIONS save money

      I get it, Government ear marks, pet projects
      that WASTE BILLIONS of dollars and PRINTING
      money where it does not EXIST is really helping
      things.

      I can tell you the cash for clunkers $4500
      cost the taxpayer $25000 yes that did a lot
      of good.

      Government involvement = DISASTER...

      Another Barry Sorento solder trying to
      spew untruths about job creation when
      UNEMPLOYMENT IS AT RECORD HIGH!

      $7,000,000,000,000 TRILLION and going
      higher within his first year he added
      $2 TRILLION with NO stop in sight.

      You cannot tell me this is good.

      That is why our DOLLAR is ranked 48
      in the world!!!!!!!!!!!!!!!!!!!!!!
      Use_More_OIL_NOW
      • You forgot a few things

        First is the economic house of cards built by the conservatives. Then toss
        in the Iraq War for No-WMD that will cost trillions long term. The
        mortgage melt down, conservative corporations in the financial sector
        bailed out, etc.

        Let's call it "The Great Recession" and be very relieved it isn't "The Great
        Depression, Part II'.
        Ken_z
        • Not so fast, Johnny

          "the economic house of cards built by the conservatives"

          Wasn't it the progressives in Congress that blocked Bush's attempt to regulate Fannie & Freddie? Wasn't it Clinton's administration that refused to regulate the casino business on Wall St. during 1990's even after the Long Term Fund debacle? Isn't it this big fat dumb progressive Barney Frank that still drives FHA to give out crazy loans to unqualified buyers that will surely turn into another Fannie and Freddie mess that has to be cleaned up w/ tax payers' money?

          That's not to say Bush didn't screw up, but do get your fact straight b4 coming here to mouth off.
          LBiege
  • Will "help" nerds in a big way

    One way that Messiah's plans will help the nerds of Silicon Valley is that databases will grow exponentially. The basic idea of a socialized society is to keep tabs on citizens--their health care, their movements, their income, their spending, what they think, and so on.

    I am not joking. This is a central tenet of socialism--centralized planning requires information--lots of it.

    My advice is to learn all you can about database management. Better yet, dump the maroons in Washington before they can do their damage.
    Dorkyman
  • This old self-employed guy's preference?

    The most efficient approach for a small company is to pay
    health care taxes based on income. That allows for greater
    strength during tough times, or during a start-up period.
    And a catch-up when times get better.

    Ken_z
  • If we subtract the health-care costs...

    ...people could work for cheap. But why would they want to be "employed" by you, rather than be self-employed?
    3dguru