Filed under: Economy, Health Care, Liberalism, Freedom, Democrat Corruption, Progressivism, Taxes, Capitalism, Law, Regulation | Tags: January Jobs Numbers, ObamaCare Kills Jobs, Hurts American Incomes
Perhaps the gales of laughter have reached ears in the White House. Can you possibly believe that they didn’t know that people would find their insistence that losing a job was liberating and you would no longer be locked in a job and could write poems or make music. In any case, people do not seem to be feeling “liberated” by the lack of jobs.
The January job numbers were dismal. Spinning 113,000 gains in hiring is not too hard, because anything over 100,000 sounds like a positive, but back to back gains in hiring were the weakest in three years. The 48,000 rebound in construction probably reflects a bounce-back from weather-depressed readings in December. The fall in the unemployment rate reflects, not more people hired, but more people dropping out of the work force.
ObamaCare will reduce the incomes of most Americans. It will redistribute wealth, but the redistribution will be stunningly lopsided. According to a study from the liberal Bookings Institution ObamaCare will increase the income of Americans in the lowest 20 percent of the income scale — especially in the lowest 10 percent. But all other income groups, even those who make modest incomes in the $25,000 range will experience a decline in income because of ObamaCare. It will increase income by 9.2 percent for those in the lowest bracket. For everybody else, it will reduce their income by about 0.9 percent.
Republicans have argued all along that the ACA would end up costing the economy jobs, and the cost would be enormous. Previously the CBO’s cost estimate came to $848 billion over its first decade, but that has now grown to more than $2 trillion. The claimed deficit neutrality of ObamaCare was a myth which the GOP said it was all along. The CBO does not predict the number of job switchers or “free agents” It projects the net reduction in hours worked in the American economy — and that projects lower tax revenues— for a system that relies on tax revenues for the subsidies that keep their fantasy going.
A reduction of 2.5 million FTEs from ObamaCare would result in a reduction of $80.5 billion each year in gross compensation, even at the low-income average of $35,000 a year. That means less economic activity and lower tax revenues, thanks to the decrease in income that the loss of 2.5 million FTEs entail— no matter how they disappear. The greatest effect will be on the working middle class — just the folks Obama claims to want to help the most.