Obamacare begins to eat at the economy

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bear 1

288,000 jobs added in June, the media breathlessly announces:

The economy added 288,000 jobs in June, a better-than-expected number that helped push the unemployment rate down to 6.1 percent.

It’s the lowest the unemployment rate had been since September 2008, the month Lehman Brothers went bankrupt, and the financial crisis that set off the recession began.

Stocks rose on the robust report, with the Dow Jones average topping 17,000 for the first time just after the markets opened.
The figures will have politicians wondering how the expanding economy might affect this year’s midterm elections, where Republicans are now favored to take back the Senate, in part, due to dissatisfaction with President Obama, whose approval ratings are hovering just above 40 percent.

The strong number marks the fifth straight month of jobs growth above 200,000, bolstering hopes the economy has turned a corner.

The June report from the Bureau of Labor Statistics includes good news beyond its topline numbers as well.

It showed that the economy added 304,000 jobs in April, more than the 282,000 previously projected. The jobs count for May was also revised up, to 224,000 from 217,000.

But the news is not good. In fact, it’s bad.

It was predicted that Obamacare would lead to more part time jobs and fewer full time jobs as businesses looked to cut employee hours to escape the Obamacare burden.

No way, says Huffington Post:

Obamacare has not yet turned America into a nation of part-time workers, as many of its strongest critics have long said it would.

In fact, the opposite seems to be happening, according to new government numbers published Friday: The number of part-time jobs is actually shrinking, and full-time jobs are being created instead.

Specifically, the number of part-time workers in the U.S. fell in February to about 27.3 million, the Bureau of Labor Statistics reported on Friday. That number is down by about 300,000 since March 2010, when the Affordable Care Act, aka Obamacare, became law.

Meanwhile, the ranks of full-time workers have grown by more than 2 million within the past year to 117.8 million in February. The number of part-time workers fell by about 230,000 over that period.

No way, says the Washington Post

The motivation to move even more workers into part-time positions is relatively straightforward. Employers can dodge the requirement to purchase health benefits and not pay a fine to the federal government. All of a sudden, they’re off the hook for an insurance policy that, on average, costs $9,562 to provide — and they don’t have to pay a fine.

We haven’t seen many employers move forward with such a change. A recent survey from the Federal Reserve Bank of Minneapolis found that 4 percent of companies it surveyed had moved to a larger, part-time workforce in response to the Affordable Care Act.

But the part time nation has emerged.

There is an ugly secret in the employment report. All of the new jobs were part time. Part time employment saw an explosion of nearly 800,000. 500,000 full time jobs were lost last month.

There’s more. The number not participating in the workforce rose by 111,000 last month to another new record. U6 unemployment, real total unemployment, remained at 12%.

You can raise little bear cubs and for a while they’re adorable. Problem is, eventually they will grow up and eat you. The bear is loose and he’s hungry.

DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education. DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed. Except for liberals being foolish.

15 Responses to “Obamacare begins to eat at the economy”

  1. 1

    mathman2

    The rest of the story is in the tally of those who are employed in any way. The percentage of employed is steadily decreasing. Fewer people working means fewer paying taxes. A larger proportion of workers engaged part-time means fewer workers with health insurance from their employer.
    With the economy collapsing at a 2.9% annual rate and the number of people working decreasing, I fail to see any hope in the current statistics. Look at U-6. Ignore U-3, as a lot of folks don’t count any more.
    You only get 6.1% unemployment by not counting a lot of bodies.
    Hope and Change, anyone?
    And the new flood of immigrants means more need for mandated assistance, since the immigrants will not find work. But boy oh boy, will the illegals swell the Democratic voter rolls! Permanent Democratic majority, that’s the goal. Socialism now, Socialism forever. The United States of Cuba.
    Hooray!

  2. 2

    Nanny G

    Just think how much worse it would have been had Obama got his minimum wage hike!
    Last month, 523,000 full-time jobs were lost, while 799,000 part-time jobs were added. http://michaelscomments.wordpress.com/2014/07/03/july-unemployment-numbers-kind-of-yucky-actually/
    Or, almost all of the 288,000 jobs created last month were just part-time.
    http://blogs.marketwatch.com/capitolreport/2014/07/03/part-time-work-jumps-in-june-by-nearly-800000/
    Only 47.7 percent of adults in America are working full-time.
    Teenage unemployment is now up to 21%.
    http://www.bls.gov/news.release/empsit.nr0.htm
    All of Obama’s ”pivots” to unemployment have done nothing.
    We are heading toward a zero unemployment rate only because more Americans keep dropping out of the labor force.
    And Obama will pretend that is good!…..
    “By every economic measure, we are better off now than we were when I took office. You wouldn’t know it, but we are,” the president said Friday.
    http://www.thegatewaypundit.com/2014/06/obama-chutzpah-we-are-better-off-now-than-when-i-took-office/

  3. 3

    another vet

    And to finally put an end to the leftist argument that the reason for the decrease in the Labor Force Participation Rate being attributed to people retiring, here are the stats. Notice that the participation rate for those over 55 INCREASED and for those under 55 it DECREASED. No doubt the lefties here will still push the meme that the decrease is due to people retiring. Facts be damned.

    http://www.bls.gov/emp/ep_table_303.htm

    http://www.bls.gov/opub/ted/2014/ted_20140106.htm

  4. 4

    Nanny G

    Obama lied, people died.

    Las Vegas woman, Linda Rolain, died Monday, less than two weeks after her family went public with details of how enrollment trouble through the Nevada Health Link insurance exchange kept her from getting treatment in January for an aggressive brain tumor.

    Rolain was one of about 150 Nevadans suing Nevada Health Link contractor Xerox for enrollment mixups that left them without the health insurance they paid for.

    http://www.reviewjournal.com/news/las-vegas/woman-class-action-lawsuit-against-xerox-dies
    Yes, she had paid for her insurance, but no treatment was made available for her.

    Ms. Rolain should have had coverage in January.
    (The Rolains) did everything they could to facilitate the acquisition of a health plan. She suffered and she died all because of the negligence of a vendor who should not even be in the industry.

    How many other Americans are in the same boat?
    Well, the estimate is that over 100 other Las Vagas families are.

  5. 5

    JJ

    This radical administration has done nothing but give divisive speeches about jobs without producing any. Do Americans comprehend that we are letting over 100,000 plus legal immigrants in every month making Obamas job statistics Zero? However, The Whitehouse cabal hired 1600 IRS Agents to torment the middleclass. Mass immigration has decimated the poor and working class. Granting these people citizenship will overnight put 11 million more people on full welfare entitlement — America simply cannot afford this and the poor and working class are going to take a second hit because of it. wages have gone through the floor because of this insane policy. Its all out Redistribution of American wealth to the undeveloped countries to be ruled by Progressive radicals like Hillary, Obama , the Global maniacs and the UN

  6. 6

    another vet

    @another vet: I wonder why these links worked this morning but now they don’t. Here is the error message. I wonder if they are playing games.

    The requested URL “http://www.bls.gov/emp/ep_table_303.htm” cannot be found or is not available. Please check the spelling or try again later.

  7. 7

    Randy

    Someone forgot to close the barn door! The statistics were not to be revealed by this transparent government. All of us just need to take their word.

  8. 9

    Marine72

    @JJ: JJ: great point. Suggest a minor correction to 16,000 (as in thousands or an entire Division of Marines/Soldiers task organized (plussed-up) for war). Major point as this really points to the unacceptable IRS army of lois learners with fully stocked armories and MRAP vehicles. 2 Billion DHS ammunition rounds had to go somewhere.

  9. 11

    Pete

    And these negative numbers are with the main portion of obamacare delayed until after the elections. Just imagine how much worse these numbers are going to be if the employer mandate is finally enforced after the upcoming elections.

    Premium rate increases are HIGHER since obamacare’s partial enactment than they were before, yet leftists are still lying claiming the rate increases are allegedly lower than they were pre-obamacare. NONE of the vaunted promises (lies) of what obamacare would bring have occured – while every single point opponents made about the dangers of this evil law has come true. The unemployment effect, the negative impact on the economy, loss of physicians, increased cost of premiums, co-pays and deductibles, the impact on medical device manufacturing due to increased taxes….it is only going to get worse, and the lying collectivists will engage in whatever deceit is needed to try to avoid the masses ever learning how badly their were deceived by the left.

    “We have to pass it to learn what’s in it” should be hung around every single democrat every day. In a just world every single one of the bastards who voted for obamacare would be thrown out of office and barred from ever holding any position of authority again for being so incompetent.

  10. 12

    Nanny G

    Dr. John writes:

    288,000 jobs added in June, the media breathlessly announces: The economy added 288,000 jobs in June, a better-than-expected number that helped push the unemployment rate down to 6.1 percent. It’s the lowest the unemployment rate had been since September 2008….

    Yeah.
    Right.
    The United States lost over half a million full-time jobs just in June!
    http://www.zerohedge.com/news/2014-07-03/june-full-time-jobs-plunge-over-half-million-part-time-jobs-surge-800k-most-1993
    Bd winter weather forced many schools to remain open later into June than usual, resulting in more teachers and administrators being on payrolls in the middle of last month than the seasonal adjustment procedures would account for.
    http://www.nytimes.com/2014/07/04/upshot/great-jobs-numbers-but-hold-the-fireworks.html
    The 288,000 net figure came from a surge in part-time employment of nearly 800,000.
    676,000, not seasonally adjusted — became “discouraged” and left the labor force and are no longer considered by the BLS to be unemployed.
    http://www.bls.gov/news.release/empsit.t02.htm
    “““
    Lefties point to the stock market as somehow proof Obama is good for business.
    But who is the biggest buyer of stocks in todays’ market?
    Businesses are buying their OWN stock from private shareholders!
    This is a way for big businesses to tie up their cash, cut back on dividends to outsiders, consolidate their holdings and avoid a few taxes.
    It does not innovate.
    It does not share the wealth.
    It does not speed the velocity of money.
    It therefore is a huge drag on the economy.
    It is yet another way Obamacare is eating the economy while fooling leftists.

  11. 13

    FMB42

    Obama (doesn’t) Care has, by design, been eating away at the economy since it was passed into law. A case in point is the fact that my wife and I saw our HC insurance rates skyrocket from $325 a month in 2007 to nearly $800 per month by 2009. I’ll also mention that my wife only used her HC twice a year and I never used it at all during this time! Talk about eating away at your budget (that is, unless you’re on public assistance like most of 0Muslim’s supporters).

    Meanwhile, we need to keep in mind that our lawmakers are hell-bent on increasing their wealth and power by simply reducing or eliminating the wealth and power held by their constituents. Outrageous cost of living increases coupled with virtually meaningless voter power has done much to increase their insatiable cravings for wealth and power.

    And our lawmakers are doing the same by flooding the country with ignorant and totally public assistance dependent 3rd world immigrants who lie, cheat, steal, and sneak their way into this country. These corrupt lawmakers and disgustingly uncivilized 3rd world immigrants will even stoop as low as to use children as a means of achieving their unethical goals.

  12. 14

    Greg

    This is what the Obama economy looks like, in 2 charts

    Not quite the disaster predicted by republican jeerleaders over the past 6 years, is it? But hey, there’s still time! A lot can be accomplished in 2 years with republicans in control of both the House and Senate.

    Note, btw, that job growth hasn’t been in the public sector. Public sector employment has remained flat. In fact, the number of public employees has actually declined.

    And then there’s the stock market, which is at record highs. And inflation, which is minimal. Gas prices, which are falling. Conventional energy production, which is booming. And the green energy initiative, which is proving to be both successful and profitable, in spite of that.

    Oh yeah… And after years of decline due to foreign outsourcing, the American manufacturing sector is growing again. Don’t believe it? Look it up.

    This is what an economic disaster looks like?

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