American Elephants


“If You Like Your Job…” ObamaCare Will Increase Unemployment by The Elephant's Child

The Congressional Budget Office says that ObamaCare will increase unemployment. There are 7.8 million Americans working part-time who want full-time work. Mr. Obama changed the subject to raising the minimum wage.

On Tuesday no less than the Congressional Budget Office reported that the health law is causing Americans to work less or not at all, in a remarkable intellectual turnabout for the budget shop that Democrats cited repeatedly when selling ObamaCare. Now CBO—full of liberal-leaning economists—says the economy will lose the equivalent of two million full-time workers by 2017 and 2.5 million over the next decade, a threefold increase over its prior estimate.

ObamaCare’s complex design includes new subsidies, new taxes and new mandates. For low wage, lower-skilled or discouraged workers ObamaCare offers incentives that can force them to trade jobs for entitlement benefits. The CBO concludes that ObamaCare will encourage people to supply less labor by working fewer hours to qualify for more benefits. The incentives suggest watching carefully the overtime, a promotion or training in hopes of higher future earnings — it might boost you into another category with less or no subsidy. The question becomes how many people can the nation support on entitlements? I thought the numbers were already too high.

The CBO’s job-loss prediction doe not include the impact of ObamaCare’s employer mandate, which requires businesses with 50 or more full-time employees to offer insurance or pay a $2,000 penalty for each worker beyond 30 employees. The mandate has been delayed by executive order for a year. so it won’t take effect till 2015, which probably means the CBO is vastly underestimating job losses.

The White House, of course, denies everything. “Claims that the Affordable Care Act hurts jobs are simply belied by the facts in the CBO report,” the White House, in the person of Jay Carney, declared. The White House seems to mean that the report is positive because”individuals will be empowered to make choices about their own lives and livelihoods” and “have the opportunity to pursue their dreams.” Didn’t Nancy Pelosi suggest that they would have more time to do art or crafts or maybe music?

Incentives matter. People respond to incentives. And there’s nothing in the act that encourages businesses to hire more workers and be more competitive. Like “if you like your doctor,” it may include “If you like your  job…” The law is a job destroyer that is taking away rungs from the ladder of upward economic mobility.

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“Didn’t Nancy Pelosi suggest that they would have more time to do art or crafts or maybe music?”

Yeah… “Funemployment” was one of the terms being coined at the time. And it’s no less ridiculous now.

Reid is another one… saying that people will no longer be caught “job lock” – his way of saying people are trapped in jobs they don’t like because they need the insurance. Well, now he says people are free to quit those jobs! Which only leaves the question about how they’re supposed to pay for the overpriced mandated health insurance everyone is now required to have. Hard-working people are now free to choose not to work! It’s the American dream!

Years ago, when this law was being debated I told people that passing this law would be one of the worst possible things that could happen… to the Democrats. It was never going to work, and passing the law would simply be putting a millstone around the neck of anyone who voted for it.

And one other point: A maxim of the advertising industry is that nothing will sink a bad product faster than a successful ad campaign. Well the ad campaign for Obamacare was a success… everyone knows about it. And they are learning what a bad product it is… the hard way.

Comment by Lon Mead

“Years ago, when this law was being debated I told people that passing this law would be one of the worst possible things that could happen… to the Democrats. It was never going to work, and passing the law would simply be putting a millstone around the neck of anyone who voted for it.”

Oh, I do hope you’re right!

Comment by American Elephant




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