Obamacare will cut the equivalent of 2 million jobs.

Discussion in 'Politics' started by Sennalover, Feb 5, 2014.

  1. http://www.reuters.com/article/2014/02/04/us-usa-fiscal-obamacare-idUSBREA131B120140204
    (Reuters) - President Barack Obama's healthcare law will reduce American workforce participation by the equivalent of 2 million full-time jobs in 2017, the Congressional Budget Office said on Tuesday, prompting Republicans to paint the law as bad medicine for the U.S. economy.
    In its latest U.S. fiscal outlook, the nonpartisan CBO said the health law would lead some workers, particularly those with lower incomes, to limit their hours to avoid losing federal subsidies that Obamacare provides to help pay for health insurance and other healthcare costs.
    The biggest impact would begin in 2017, CBO said, because major provisions of the law will be well under way by then. The CBO said there would be smaller declines in work hours that would occur before then.
    Work hours would be reduced by the equivalent of 2.5 million jobs in 2024, said the agency, which earlier predicted 800,000 fewer fulltime jobs by 2021. The bottom line would be a slower rate of growth for employment and compensation in the coming decade, according to the report.
    The link that the CBO drew between the health law and slower employment growth is likely to become fodder for partisan attacks in this year's congressional election battle, which will determine who controls Congress in the final years of the Obama presidency. Obamacare is unpopular with many voters and its botched October rollout was accompanied by a public outcry by millions of people who saw their health plans cancelled as a result of its implementation.
    Republicans, who have already made Obama's Patient Protection and Affordable Care Act (ACA) a top campaign issue for November, seized on the CBO report to press their argument that Obamacare is putting a damper on jobs growth and the economy.
    "The president's healthcare law creates uncertainty for small businesses, hurts take-home pay, and makes it harder to invest in new workers. The middle class is getting squeezed in this economy, and this CBO report confirms that Obamacare is making it worse," House of Representatives Speaker John Boehner said in a statement.
    But the White House pushed back on the argument that Obama's signature domestic policy achievement would mean an actual reduction in jobs.
    "It's not that the businesses are cutting those jobs," said Jason Furman, who chairs the White House Council of Economic Advisers. He said the CBO report showed an impact on labor supply rather than demand for workers from employers.
    The CBO report offered some bright spots on the broader fiscal front, saying the U.S. budget deficit would be a smaller than expected $514 billion in the fiscal 2014 year ended September 30. That is down from a previous estimate of $560 billion and a fiscal 2013 deficit of $680 billion.
    But it said sluggish economic growth and stubbornly high unemployment would cause the improvement to be short-lived.
    The CBO also said Obamacare would enroll 1 million fewer uninsured Americans than initially expected as a result of technical glitches that largely paralyzed the federal website HealthCare.gov in the first two months of open enrollment.
    In a fresh forecast for 2014, the CBO estimated that 6 million people would sign up for private coverage through new health insurance marketplaces, down from an earlier forecast of 7 million. But the report predicted that the program would eventually overcome the deficit, signing up 24 million people by 2017.
    The Obama administration says the health insurance marketplaces now operating in all 50 states and the District of Columbia have enrolled about 3 million people in private coverage so far, with volumes increasing following major fixes to HealthCare.gov.
    Despite claims from Obamacare critics about the law's potential effects on hiring, CBO said the expected drop in work hours between 2017 and 2024 would result largely from worker decisions not to participate in the labor force, rather than from higher unemployment or the inability of part-time workers to find full-time hours.
    "The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses' demand for labor," CBO said.
    According to the report, federal subsidies can be substantial, particularly for lower-wage workers who receive more under the law's sliding income scale. But that also means the benefits can be phased out as a worker's income rises.
    "The phaseout effectively raises people's marginal tax rates (the tax rates applying to their last dollar of income), thus discouraging work," CBO said.

  2. #2 RippedMonk, Feb 5, 2014
    Last edited: Feb 5, 2014
    I agree, it is a disaster and while it will help many people it will cause great harm because it's a shitty bill put together by assholes on both sides of the isle.  The part that cracks me up though is how much attention will be on Obamacare affecting the economy, while everyone ignores the larger problems that have sunk this country and its economy for nearly 40 years. 
    When was the last time you bought something made in America?
    Funny you stay that. My Stepmother was on a quest to replace her bedroom set but she wanted it made, assembled, and sold in USA. She searched high and low. Found one place but it was like 10k for the set. Ended up buying foreign made stuff. 
  4. The ACA was passed in the dead of night on Dec, 24 2009 and passes in the house on March, 21 2010, with zero republican votes in either house. It was not a bipartisan bill, it was something the liberals pushed down our throats. 
  5. #5 RippedMonk, Feb 5, 2014
    Last edited: Feb 5, 2014
    Exactly.  A far bigger issue to US jobs than Obamacare.  But we ignore the outsourcing, the crimes committed by the financial sector, and governments mistakes with these banks and instead just point to the dangers of Obamacare on our economy.  It's just a distraction so people ignore the larger problems.
    The ACA was rewritten over and over again to appease enough politicians to get it to pass.  The bill morphed into a pile of shit because of pressure from both sides of the isle.  And your second mistake is thinking democrats are automatically liberals.  Had liberals wrote and passed the bill we would at least have gotten a single payer system.  
  6. #6 Insert Name Here, Feb 5, 2014
    Last edited by a moderator: Feb 5, 2014
    Ok... Why would the democrats care what the republicans thought about the bill when they didn't need them to pass it? You are right about liberals wanting a single payer system, but the pressure wasn't from the republicans it was from the moderate democrats.
  7. #7 RippedMonk, Feb 5, 2014
    Last edited: Feb 5, 2014
    Didn't you watch that train wreck happen?  it was the only damn thing on the news for months.  With the constant threats from the republicans to defund other things and the filibustering, they had to try and reach out across the isle to pass it.  It's politics man, there is no such thing as simply passing a bill because you have the majority anymore.  Not to mention that they had to get other dems on board.  Not all of them think and act alike.  Most of them are owned by the insurance companies.
  8. Yes the republicans now are try to "fix" the mess the democrats did by passing this bill. So now, 2 1/2 years after the bill passed the House, it's becoming more partisan. The reason for the shutdown was for it to be repealed even delayed, but the liberals would not budge; so now the Republicans are forced to make due, and try to fix this shit.  
    They battled democrats during the time the bill was first passing as well.  The ACA is still a product of both parties and their childish and corrupt bullshit.  Politics is a game and all of them played it poorly, resulting in this horrible new law.
  10. the whole thing was doomed from the start...the only reason they rushed it was it was part of the governments healthcare statement to get universal healthcare by 2013 and they just threw something together last minute..its a shame they didnt actually work it out and do it right
    You got that right. Whats funny is all what 3000-4000 pages of it were out there for people to read as well. Everything that has and will happen as a result is public domain..from the Bailouts, losing your Doctor, premium increases etc.  We are truly fools to have ever supported this. 
    The problem was that people supported healthcare reform because we badly need it, but we didn't get what we deserved or were promised.
  13. Misleading spin.
    No jobs will be lost. They are saying enough folks will recieve supplements that they will (voluntarily) reduce their hours or retire early.
    Think about it, there may be a positive outcome in that folks looking for work will have more opportunity. :smoke:
  14. #14 Insert Name Here, Feb 5, 2014
    Last edited by a moderator: Feb 5, 2014
    No we got we deserved.... Haha... By putting that jackass in office. He promised change and that's what he is intent on doing, "fundamentally transform America". Socialize medicine, redistribute wealth, stricter gun laws, among other things....
    Lulz, its not misleading if you actually read the report, instead of the title.
    Work less hours or lose subsidies is hardly the definition of voluntary, especially when either outcome is forced onto people through the bill. It is not receive subsidies and then work less, it is either work less, or loose subsidies.
    I see no positive outcome in workers having their hours reduced, or risk losing subsidies, from the very same law. It looks like all it will accomplish is further increase peoples dependence on government, and drain the tax base.
    So yeah, talk about misleading spin.
  16. They can make more money by working and paying higher premiums. The report specifies that expectations are projected for Voluntary reduction of hours, retirement, or a family member leaving the workforce for taking care of children.
    So ya, you and the title are spinning. :smoke:
  17. #17 cball, Feb 5, 2014
    Last edited by a moderator: Feb 5, 2014
    seems the wealthy owners cutting wages and hours to evade the healthcare cost and taxes, would be the focus of that scenario the repugs weaved.
    go figure they would blame Obama for what they said corps and companies would ELECT to do to evade taxes...
    (not that the whole thing isn't bullshit, but it is Romneycare with an 'obama' wrapper...)
    Please give me examples of each of your criticisms.  I have yet to see any of those things.  Our country has not been "fundamentally transformed," I don't see any socialized medicine, no redistribution of wealth, no new gun laws, etc.... I'm no fan of our POTUS or anyone in Washington, but I call bullshit on your accusations.
    Lol, so once again, forcing individuals to either work less and receive subsidies, or work more and pay more, is not the definition of voluntary. Its just generating a dependency on government, and the tax base.
  20. #20 Insert Name Here, Feb 5, 2014
    Last edited by a moderator: Feb 5, 2014
    Obamacare is a form of redistribution of wealth, the young and healthy pay via higher premiums pay for the sick and old.  And they tried to pass stricter gun laws after Sandy Hook, but it got voted down. 
    Oh and higher taxes on the rich so "they can pay their fair share" =  redistribution of wealth.

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