Posted on 10/09/2014 1:07:54 PM PDT by ThethoughtsofGreg
In a new working paper from the Mercatus Center, University of Chicago economist Casey Mulligan projects that the Affordable Care Act will reduce weekly employment per person by 3 percent, or roughly 4 million full-time-equivalent workers. These new estimates are significantly higher than the 2.5 million reduction in labor supply estimated by the Congressional Budget Office earlier this year.
To be clear, a reduction in labor supply differs from a reduction in labor demand—a distinction many failed to recognize when the CBO first released estimates. It is not the case that the ACA will necessarily forces employees out; rather, the ACA’s disincentives to work will cause some employees to voluntarily reduce hours, and in aggregate, will reduce employment by 4 million full-time-equivalent workers. As Mulligan puts it:
Before the ACA, people found health insurance to be less expensive when employed than it was when not working, and health insurance expenses were one reason why unemployed people have been eager to get back to working in a position with coverage. But the ACA reverses the calculus by giving people who do not work more opportunities for subsidized coverage than employed people will have.
(Excerpt) Read more at americanlegislator.org ...
Totally unexpected.
Sounds like another mis-begotten reduction in the unemployment rate will result... hooray!
Nobody works, nobody pays: it’s a stoned teenagers dream come true.
It’s not more than I previously thought. I expect more to come.
Who would have guessed that Obamacare would harm the country is so many ways? I read the full bill and knew, but Congress and the media didn’t even bother reading it, so they had no warning until all these surprises.
“If you like your GDP, you can keep your . . . oh, never mind.”
DO I need to bring up the obvious? This is “projected” these aren’t hard numbers. The left can bring up just as many “projected” studies as the right.
I prefer to work on the real thing whenever possible. At least you can then point out real hard numbers to a left-bot and they can’t throw projections back in your face.
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