Obamacare’s jobs effect
A Congressional Budget Office report says the Affordable Care Act will shrink the U.S. workforce by the equivalent of 2 million full-time jobs in 2017.
The Congressional Budget Office released a report this week projecting that the Affordable Care Act would shrink the U.S. workforce by the equivalent of 2 million full-time jobs in 2017, further fueling the political controversy surrounding President Obama’s health-care law. Critics of the law were quick to cite the report as support for their claims that Obamacare would prove harmful to the economy. “The middle class is getting squeezed in this economy,” said House Speaker John Boehner, “and this CBO report confirms that Obamacare is making it worse.”
“The real story, as usual, is a lot more complicated,” said Jonathan Cohn in NewRepublic.com. The CBO isn’t projecting that there will 2 million fewer jobs available because of Obamacare, but that Americans “will be choosing” to work fewer hours once the new law is in place. Some people who now hold full-time jobs only for the health benefits will be able to cut back to part-time and still have medical insurance. Some people in their 60s may choose to retire early for the same reason. And yes, some people will simply quit low-paying jobs they hate, knowing they’ll get Medicaid. In other words, “most of the people working fewer hours’’ will be happy to do so. That’s not a bad thing.
Yes it is, said John Podhoretz in the New York Post. “This is the classic problem of a government handout.” The law’s subsidies offer “perverse incentives” to the poor. Why work when taxpayers will give you health care for free?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Obamacare remains a net positive for the economy, said Matthew Yglesias in Slate.com. The CBO report only proves “how much avoidable suffering the earlier system was causing”—to the uninsured and to workers who were “locked into jobs for fear of losing coverage.” It’s true that employers won’t be thrilled. As workers become pickier about their jobs, companies may “need to pay more to recruit workers.” I’d consider that progress.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Why is Putin 'de-exonerating' Stalin's victims?
Under the radar Russian president has 'insatiable impulse' to 'rewrite history', say commentators
By Chas Newkey-Burden, The Week UK Published
-
Shahnaz Habib's 6 favorite books that explore different cultures
Feature The essayist and translator recommends works by Vivek Shanbhag, Adania Shibli, and more
By The Week US Published
-
'Why is the expansion of individual autonomy necessarily always good?'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Obamacare crosses its first hurdle
feature The first open enrollment period of the Affordable Care Act came to an end amid a last-minute sign-up surge that pushed participation beyond 7.1 million.
By The Week Staff Last updated
-
Obamacare’s new troubles
feature Once again, the administration announced delays in deadlines set in the Affordable Care Act.
By The Week Staff Last updated
-
Delaying the Obamacare business mandate—again
feature The White House announced another delay to the Affordable Care Act’s employer mandate.
By The Week Staff Last updated
-
Obamacare’s youth shortfall
feature Only about a quarter of new enrollees in the Affordable Care Act’s federal and state marketplaces are under 35.
By The Week Staff Last updated
-
The White House’s ‘long game’ on Obamacare
feature The Obama administration announced that it had signed up 2.1 million people in private health plans and 4.4 million in Medicaid by the Jan. 1 deadline.
By The Week Staff Last updated
-
The relaunch of Obamacare
feature President Obama relaunched his signature health-care law, declaring that the troubled enrollment website was largely fixed.
By The Week Staff Last updated
-
More trouble for Obamacare
feature The HealthCare.gov site may not be fully fixed by a self-imposed Nov. 30 deadline.
By The Week Staff Last updated
-
White House promises Obamacare fix in a month
feature Kathleen Sebelius took responsibility for the technical problems that have plagued the rollout of the Affordable Care Act.
By The Week Staff Last updated