CBO: Obamacare reduces employment

No kidding:  The reason for that, you can surmise, is because PPACA adds thousands of dollars to the costs of each job and thousands of dollars in expenses to most households with no corresponding purchase of value or productivity.

http://www.washingtonpost.com/business/economy/cbo-botched-health-care-law-rollout-will-reduce-signups-by-1-million-people/2014/02/04/c78577d0-8dac-11e3-98ab-fe5228217bd1_story.html

Also worth noting that a sclerotic, underperforming employment market diminishes economic mobility.

Let’s remember now, as was when Obamacare was being debated… the CBO is always right.

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7 thoughts on “CBO: Obamacare reduces employment

      1. PM

        But it is the same day, and the same report! Makes it even worse!

        I suppose that this is actually an insight into what our politics has become–lots of unconnected sound bites. There is no more overarching theme, no concern for continuity or consistency over time. Hatch (and he is certainly not alone in this) is displaying the politically correct reactions to separate incidents, with no regard for consistency or integrity. It is all in the moment. Sort of a Twitterization of politics.

        politics as a reaction sport–no thoughtfulness necessary.

  1. Erik Petersen Post author

    I was knee jerk yesterday, and gave in to the whimsy of some confirmation bias vis a vis the idea of ‘job loss’.

    I still don’t think this is good. The most common phenomena is going to be people be cutting back on hours to remain eligible for the subsidies where they could otherwise ostensibly afford insurance without a subsidy.

    That’s too extravagant a feature for PPACA, to pay for this worker ‘freedom’. It’s a bad disincentive.

    Reply
  2. PM

    I don’t think that this is bad at all: here is Yglesias explaining it:

    http://www.slate.com/articles/business/moneybox/2014/02/cbo_on_obamacare_people_won_t_be_as_desperate_for_work_and_nobody_s_going.html

    and here is your friend Chait:

    http://nymag.com/daily/intelligencer/2014/02/obamacare-jobs-and.html

    The reality is that more people who are looking for work will find jobs because the ACA means that a number of people (2.5 millions FTE’s) will choose to work less, because they will not be forced to continue working in order to maintain their health insurance. In addition, they will probably also get higher wages (see: http://talkingpointsmemo.com/dc/obamacare-cbo-wages ).

    Even Paul Ryan is now saying that the line that Obamacare is a jobs killer is wrong:
    http://talkingpointsmemo.com/livewire/paul-ryan-gop-job-losses

    Reply
    1. Erik Petersen Post author

      Yes, Ryan does want to acknowledge a correct perspective.

      I read MattY, who lays out how it’s to work in theory. ‘Job loss’ might be overstated. I got to think the benefits of this are as well. I’m just not convinced PPACA is a good enough insurance providing mechanism to enable emancipation from ‘job lock’ for a meaningful amount of people, certainly not disadvantaged people.

      The meaning differential is (premium cost for employee in employer plan) – (premium for person buying on the exchange, subsidized if applicable). If that’s a big savings, and you can live on reduced hours or without a job, it helps you. How many people like this are there?

      Thing is, you get good rates when you are on a group plan. And PPACA plans are not a good value. High deductibles for bronze and silver. I’m skeptical the savings are such that people can quit their jobs.

      Reply

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