The new healthcare law will slow economic growth over the next decade, costing the nation about 2.5 million jobs and contributing to a $1 trillion increase in projected deficits, the Congressional Budget Office said in a report released Tuesday.
The non-partisan group’s report found that the healthcare law’s negative effects on the economy will be “substantially larger” than what it had previously anticipated.
The CBO is now estimating that the law will reduce labor force compensation by 1 percent from 2017 to 2024, twice the reduction it previously had projected.
This will decrease the number of full-time equivalent jobs in 2021 by 2.3 million, it said. It had previously estimated the decrease would be 800,000.
It said this decrease would be caused partly be people leaving the workforce in response to lower jobs offered by employers, and increased insurance coverage through the healthcare law.
It also said employer penalties in the law will decrease wages, and that part-year workers will be slower to return to the work force because they will seek to retain ObamaCare insurance subsidies.
More at The Hill
Told ya so
I think that those who opposed Obamacare predicted this several years ago. Is Greg ready to concede yet that Obama care is a wreck?
@Randy: No doubt he is now utilizing his Excuse Dart Board to resolve what is the actual cause of the failure. (Note: Bush appears on the dart board 40 times)
More obvious and already predicted effects of the bill “deemed” passed without having been read, voted for exclusively by dems, and illegally having parts delayed by unconstitutional executive orders to buy time beyond the next election as another leftist ploy to try to make it harder to repeal this absolutely evil law.
Obamacare must be repealed. Nothing based so completely on lies can ever produce anything good or worthwhile. It is not the government’s job to provide healthcare, food, housing or retirement pay for people. Politicians who push such poison merely want to enslave individuals by getting people addicted to “free” government handouts. See Detroit for how such dependency on leftist crack turns out.
Aside from the your flip flopping of the CBO’s credibility (credible when it suits your agenda yet partisan hacks when they don’t) that’s not what they actually concluded.
That’s a long read I know so if you’ll scroll down to page 117, it clearly says
So when you interpret that it’s “costing the nation about 2.5 million jobs”, that has nothing to do with employers slashing jobs or cutting hours. The truth is that it is “allowing” the bulk of that 2.5 million to leave the work force because they will not have the fear of picking up insurance, that they can retire or pursue other options and still maintain coverage. In reality, that’s actually opening up over 2 million jobs for those that are unemployed as when the others retire, employers will need to fill those slots.
The report goes on to say:
Perhaps you should go back to hating the CBO again?
@Ronald J. Ward: “The ACA’s subsidies for health insurance will both stimulate demand for health care services and allow low-income households to redirect some of the funds that they would have spent on that care toward the purchase of other goods and services—thereby increasing overall demand. That increase in overall demand while the economy remains somewhat weak will induce some employers to hire more workers or to increase the hours of current employees during that period.” Yeah, they could redirect funds… if they had any, if they had a job.
“The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply rather than a net drop in businesses demand for labor”. So workers are choosing to reduce their OWN hours? AND pay more for health insurance?
So then, Ronald, if you make a convincing argument that it is NOT Obamacare that is causing economic sluggishness and higher unemployment… what are your options? It’s all Obama, all the time. His economy, his policies. Frying pan or fire?
Out of 41 spaces?
@Ronald J. Ward: That chart you linked to looks pretty spiffy for the years 09-14, don’t they? Let’s see, is George Bush still president? Must be.
“The ACA’s subsidies”
There we go again with the government is something over there and it grows its own money schtick.
@Ronald J. Ward:
Typical leftist deflection. It is noted you completely ignore the CBO statement that obamacare will increase the deficit by 1 trillion dollars, rather than decrease the deficit as Obama repeatedly claimed (lied) prior to the dems cramming this down our throats.
So if all these people you claim will be free to pursue other things rather than employment, where is the money coming from to pay for all this “free” socialist health care?
@DrJohn: More unicorn pee, please. Need to stimulate the economy.
Nancy Pelosi foretold all this a few years ago.
I mean, who wouldn’t rather sit around and do nothing if they could get away with it?
Fact is, people who WANT to work can find enough hours.
I know plenty of people who have different companies coordinating their hours so they can get over 40 hours a week but less than 30 hours per job.
The chart IBD keeps updating of employers who are publicly declaring they have cut hours due to ObamaCare is growing, not shrinking.
Note well how many of the organizations shrinking work hours are PUBLIC entities.
Cities, counties, states, schools, universities, and public worker unions!
HE WILL SPEND OVER A MILLION DOLLARS TO SPRUCE THE ECONOMY,
HE SHOULD PUT THAT MONEY IN CUTTING THE TAX FOR BUSYNESS,
SO THEY WOULD BE MORE APT AT HIRING PEOPLE,
BUT STILL THEY DON’T TRUST HIM, AND WHATEVER HE DOES IS NOT SURE TO STAY,
HE CAN DECIDE TO TAKE IT OUT AND LEAVE THE BUSYNESS COLD,
to say nothing of the fact there are no subsidies if they sign up on the Federal exchange, only the state exchanges.
Obama is taking that to the Supreme Court.
So, we don’t know YET whether the feds can sign up people and give them subsidies as well.
I believe it was Pelosi who claimed the ACA would create 400,000 jobs almost immediately. One wonders if John Stewart had asked her about that statement what her answer would be? This is an example of the best the Dems have.
And the hits just keep on coming for the ACA.
Nice try wingnuts!
Conservatives push misreading of CBO report to claim Obamacare is a job-killer
@This one: That is about as weak as the White House’s explanation of how this is positive proof of the good things coming from Obamacare.
People dropping out of the work force or working fewer hours generates less tax revenue. Meanwhile, they are supplementing their income with government subsidies, which further erodes tax revenues. The only positive aspect of this result is for Democrats; if continues their efforts of creating a broader dependent, poverty class that will continue to vote for the Democrats that grant them subsidies for doing less.
Now the left wholly and fully supports the notion that if the government grants people money for doing less, they will actually do less. This has been the ongoing argument against the expansion of welfare and the long-lasting damage to people and the nation it creates. Now you leftists openly embrace it.
@Bill Burris: Brilliant liberal wacho logic. If you take this assumption to it’s end then you are saying that our economy will really hmmm when we are all out of work!! Brilliant!!
@Common Sense: Let’s accept their argument at face value, then. Now show us where Obamacare is creating jobs.
No matter how you twist, turn, juke, jive or dodge, this administration is killing the economy.
THEY WANT IT THAT WAY, TO ENSLAVE THE PEOPLE AND BRING THEM IN THEIR CLAW OF MARXIST FOR ALL SOCIETY,
Congressional Budget Office (CBO) Director Douglas Elmendorf said straight out that Obamacare’s incentives scheme discourages work.
“By providing heavily subsidized health insurance to people with very low incomes and withdrawing those subsidies as income rises, the act creates a disincentive for people to work relative to what would have been the case in the absence of that act.”
YES YOU GOT IT RIGHT AT THE SOURCE,
and those sceptics still hangning on the: oh no it can’t be, WILL GET THE SURPRISE OF THEIR LIFE,
when it hit them in their wallet,
Well, the law was very specific that no subsidies (or fines) would be available on the Federal exchange. I realize that the law doesn’t matter to the Dimocrats, but it should matter to the Supreme Court.
Nice try, numbnuts:
There is no ‘claim’ Obamacare is a job killer, there is the fact.
That stupid dumbass Sheila Jackson Lee thinks that all the Dimocrats have to do is draft an executive order for Obama to sign into law. Wonder where she learned about the finer points of creating laws in the United States. All they have to do is state in an Executive Order that everyone is to have a job and magically, everyone will have a job. (I’m not quite sure how she plans to get the permanently unemployed to actually do any work)
Read more at http://minutemennews.com/2014/02/sheila-jackson-lee-well-send-obama-executive-orders-can-sign/#s93OOhxCfqAVeJWD.99
the dems are the most dangerous people in the USA,
now the next step is for the states to take over the lead of their citizens at 100 per cent,
and claim out loud that the federals are destroying this nation and they want no more part of it,
until a total reverse of the politic laws signed in the last years of number 2008 to today,
AND RETURNED TO THE PREVIOUS YEARS LAWS,OF FROM the
PRESIDENT BUSH TO BELOW OTHER PRESIDENTS AND,
ALL THE ONES FROM 2008 TILL TODAY BE ANNULED
I think the OBAMA TEAM want the AMERICANS to leave their jobs by inciting them with money,
they call subsidies, and like NANCY PELOSI tell them it’s good for them selling that publicly,
because they want to give their jobs to the 2 MILLIONS AND A HALF ILLEGALS,
SO TO GET THEIR VOTES IN THE 2016 ELECTION, AND ENCOURAGE THE COMPANIES THAT those former illegals,
immigrants just given AMNISTY, WILL WORK FOR LESS, SAVING THEM MONEY,
while they subsidise the AMERICANS who left their jobs,
and after they are re_elect they would cut the subsidies and screw the AMERICANS left unemployed,
and on welfare,