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Obamacare will push the equivalent of about 2 million workers out of the labor market by 2017 as employees decide either to work fewer hours or drop out of the job market altogether, according to estimates released Tuesday by the Congressional Budget Office.
The analysis set off a furious debate in Washington. The White House argued that the reduction is positive because it means Americans will forgo jobs or extra work to stay home with their children or strike out on their own as entrepreneurs. Republicans, however, said the report amounted to an “I told you so” moment and that subtracting the equivalent of 2 million workers can’t be good for the economy.
Conservative media outlets are misstating the Congressional Budget Office’s (CBO) findings regarding the Affordable Care Act Leftist Link
The decline in full- time-equivalent employment stemming from the ACA will consist of some people not being employed at all and other people working fewer hours; however, CBO has not tried to quantify those two components of the overall effect.
The funny thing is, we have already seen the effects of this legislation. More people are working part-time because employers do not want to be responsible for the requirements ACA lays out.
People need to come back to reality.
Effects of the Employer Penalty on Labor Supply
Under the ACA, employers with 50 or more full-timeequivalent
employees will face a penalty if they do not
offer insurance (or if the insurance they offer does
not meet certain criteria) and if at least one of their fulltime
workers receives a subsidy through an exchange.
Originally scheduled to take effect in 2014, that penalty
is now scheduled to be enforced beginning in 2015. In
CBO’s judgment, the costs of the penalty eventually will
be borne primarily by workers in the form of reductions
in wages or other compensation—just as the costs of a
payroll tax levied on employers will generally be passed
along to employees.12 Because the supply of labor is
responsive to changes in compensation, the employer
penalty will ultimately induce some workers to supply
In the next few years, however, when wages probably will
not adjust fully, those penalties will tend to reduce the
demand for labor more than the supply. In the longer
run, some businesses also may decide to reduce their
hiring or shift their demand toward part-time hiring—
either to stay below the threshold of 50 full-timeequivalent
workers or to limit the number of full-time
workers that generate penalty payments. But such shifts
might not reduce the overall use of labor, as discussed
reply to post by xuenchen
I find it endlessly hilarious that despite cold hard facts in front of your nose, people would rather believe a lie than read between the lines. Have you really bought into the fear mongering so much that you believe the dribble of Fox news? Funny that FOX NEWS AND IT SUBSIDIARIES ARE THE ONLY NEWS STATIONS REPORTING THIS TRASH.
The companies are reducing hours down to part time to bypass giving their employees healthcare, I doubt the prezi is sitting around plotting our individual demise by reduction in our work hours... so if you work at McDonalds just wait,
once legislation is passed it will be illegal to reduce work force hours to essentially break the law of the land.
reply to post by ausername
What is funny is that some people would actually believe that people would CHOOSE not to work when they have mouths to feed and bills to pay.