Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19
Where is the Top for Natural Gas? - 7th Nov 19
Why Fractional Shares Don’t Make Sense - 7th Nov 19
The Fed Is Chasing Its Own Tail; It Doesn’t Care What You Think - 7th Nov 19
China’s path from World’s Factory to World Market - 7th Nov 19
Where Is That Confounded Recession? - 7th Nov 19
FREE eBook - The Investment Strategy that could change your future - 7th Nov 19
Is There a Stock Market Breakout Ahead? - 6th Nov 19
These Indicators Aren’t Putting to an Economic Resurgence - 6th Nov 19
Understanding the Different Types of Travel Insurance - 6th Nov 19
The Biggest Gold Story Of 2020 - 6th Nov 19
Best Money Saving FREE Bonfire Night Fire Works Show Sheffield 2019 - 5th Nov 19
Is the Run on the US Dollar Due to Panic or Greed? - 5th Nov 19
Reasons Why Madrid Attracts Young Professionals - 5th Nov 19
Larger Bullish Move in USD/JPY May Just Be Getting Started - 5th Nov 19
Constructive Action in Gold & Silver Stocks - 5th Nov 19
The Boring Industry That Hands +500% Gains - 5th Nov 19
Stock Market Chartology vs Fundamentals - 4th Nov 19
The Fed’s Policy Is Like Swatting Flies with Nuclear Weapons - 4th Nov 19
Stock Market Warning: US Credit Delinquencies To Skyrocket In Q4 - 4th Nov 19
Stock Market Intermediate Topping Process Continues - 4th Nov 19
Stock Market $SPY Expanded Flat, Déjà Vu All Over Again - 4th Nov 19
How To Buy Gold For $3 An Ounce - 4th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Obamacare as a Jobs Killer

Politics / US Politics Feb 12, 2014 - 12:07 PM GMT

By: BATR

Politics

Economic illiteracy is a hallmark of most political policies. The prime example of this principle is the idiocy out of the Obama administration that maintains that the Affordable Care Act is favorable to job seekers. The ranks of progressive euphoria reporting on the joys of Obamacare want to spin the latest Congressional Budget Office’s (CBO) analysis as favorable. As these imbeciles push out their demented dreams for a neo Great Society, the facts of trade and industry need to be buried in order to institute the total welfare state.


In the face of ignoring that productive employment is a worthy and necessary goal for a healthy economy, avid Obama supporters cannot escape empirical reality. Even a flagship liberal publication like Atlantic is obliged to ask, Is Obamacare a Job-Killer After All?

"The reduction in CBO’s projections of hours worked represents a decline in the number of full-time-equivalent workers of about 2.0 million in 2017, rising to about 2.5 million in 2024. Although CBO projects that total employment (and compensation) will increase over the coming decade that increase will be smaller than it would have been in the absence of the ACA."

Such words, often dismissed by those who reject conflicting statistics, need to view the video CBO: Obamacare is a Job Killer. If the revered NYT: It's Actually Great Obamacare Will Spur 2.5 Million to Leave their Job, can joke about the fate of the unemployed, maybe their writers better hit the streets and try to find a useful job.

The 2.5 million workers that will be driven out of the workforce due to Obamacare is actually "a liberating result of the law," according The New York Times (emphasis added):

"The Congressional Budget Office estimated on Tuesday that the Affordable Care Act will reduce the number of full-time workers by 2.5 million over the next decade. That is mostly a good thing, a liberating result of the law. Of course, Republicans immediately tried to brand the findings as "devastating" and stark evidence of President Obama’s health care reform as a failure and a job killer. It is no such thing.

The report estimated that — thanks to an increase in insurance coverage under the act and the availability of subsidies to help pay the premiums — many workers who felt obliged to stay in a job that provided health benefits would now be able to leave those jobs or choose to work fewer hours than they otherwise would have. In other words, the report is about the choices workers can make when they are no longer tethered to an employer because of health benefits. The cumulative effect on the labor supply is the equivalent of 2.5 million fewer full-time workers by 2024."

In the real world, large corporations strive to cut costs and such organizations aim to reduce or forestall adding new employees whenever possible. Therefore, when the establishment press comes to the defense of Obamacare, they are actually making the argument that their own importance in their corporate enterprise is expendable.

Well before the release of this CBO report, the example of Kroger Confronts Obamacare by Reducing Employee Hours illustrates that reduced income is the byproduct for many workers.

"Kroger is a large grocery store chain which employs nearly 350,000 people and had sales sales of $90 billion last year. Last week, employees found out that, starting in 2013, there will be some changes for employees. These scheduling changes will be made to account for increased costs due to Obamacare. Employees who are not already considered full time will have their hours limited whereas, now, they are allowed to work as many hours as needed in the store. For many employees, this means that they will need to find a second job or another job altogether."

Factor in The New Normal: Part-Time Employment and you have a perfect storm for years of diminished economic activity. Then lump in the prerequisite of joining an Obamacare exchange and those government subsidies seem like little compensation for effectively using those high deductable schemes.

It is a well-demonstrated fact that Small Businesses Once Again Create More Jobs Than Big Businesses. "Small businesses created almost double the new jobs in January 2014, compared with large businesses. And when you add growth among medium-sized businesses to the employment growth in small businesses, the numbers swamp the job growth of large corporations."

Any entrepreneur with the experience of making a payroll understands that the added costs of employing labor discourages new hiring. If the economy was expanding and growing, such additional expenses might be able to be absorbed. Sorry to say, the main street economy is faltering on several levels.

Forbes warns in Obamacare Kills 2.5 Million Jobs? That Doesn't Count Independent Contractors.

"Many rules hinge on who are your employees—independent contractors aren’t covered. But that assumes that your independent contractor classification holds up. If it doesn’t and your independent contractors are recharacterized, you are back in the soup. The risk isn’t theoretical, as the IRS is active in independent contractor reclassification efforts. And more scrutiny is coming."

The implication should be clear. As people refuse to join the exchanges, the IRS will ramp up compliance by stripping the illusion that workers are legitimate independent contractors. The result is that fewer new hires will follow.

Finally, consider the impact of the ACA’s cuts to Medicare threaten home health care jobs. "Newly implemented administration policies, which slash home health care funding by 14 percent over the next four years, are already resulting in a downturn in job growth, according to the U.S. Bureau of Labor Statistics."

As the quality of health care declines under Obamacare, the burden of financing the guaranteed profits of the major insurance companies will fall upon the few remaining full time employees. Many part timers will opt for the taxpayer supported Medicaid coverage. This situation is hardly a bright health care future, nor is it a positive incentive for a lasting recovery. An honest job will become as rare as the few remaining practicing physicians.

Source: http://www.batr.org/negotium/021214.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2014 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors

BATR Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules