Thursday, February 06, 2014

Obamacare may decrease employment but at least more folks can "pursue their dreams"

The situation involving recent projections about job loss and Obamacare from the Congressional Budget Office and the White House's reaction to it falls under the joint headings "you can't make this stuff  up" and  You gotta be kidding me"
Yes, the White House really said that now people will be able to pursue their dreams,which is one way of considering  having no job,and those blessed with less work can spend more time with their family as well as having the opportunity to retire early.


See here for Avik Roy's comments regarding the CBO projection of 2.5 millions job losses and the administration's reaction it which should have destroyed any feeble residue of credibility that Obamacare apologists  may still retain.

 No,CBO is not saying that 2.5 millions folks will be fired but rather there will be "a decline in the number of full time equivalent workers of about 2.0 million in 2017 , rising to about 2.5 million in 2014."

Basically the CBO says Obamacare will decrease employment by the millions.Here is Avik Roy's explanation of how that might be brought about.

"The new, larger estimate of the law’s negative impact on the labor force derives from three factors: (1) Obamacare’s employer mandate, which will discourage hiring and reduce wages offered by employers; (2) Obamacare’s $1 trillion in tax increases, which will discourage work and depress economic growth; and (3) the law’s $2 trillion in subsidies for low-income individuals, which will discourage many from remaining in the labor force."
If you were wondering  what the tax increase would be spent you should be reassured that it will all not be wasted as some of it will go to mitigate losses that insurance companies might experience because the plan is not working out quite as projected.See here for what Humana will get so far.In Obamacare's quirky version of social justice all the redistribution does not seem to go to the most disadvantaged making it seem a bit more like crony capitalism.

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