Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 14, 2026 7:07 PM

If the National Bureau of Economic Research is to be believed, Obamacare stands to cause more than 1 million Americans to shift from work to welfare. Why? America will lose an abundance of low-paying full-time jobs to relieve employers of health-care cost burdens. The Wall Street Journal recently reported:

[A] number of restaurants and other low-wage employers say they are increasing their staffs by hiring more part-time workers to reduce reliance on full-timers before the health-care law takes effect.

“I’d be surprised if the Affordable Care Act didn’t have something to do with” the pickup in part-time hiring, said Paul Dales, senior U.S. economist at Capital Economics. “Companies don’t want to pay for health care unnecessarily if they can avoid it, so they’ll try to avoid it.” However, he said “the effects will be harder to discern in the data.”

The study, Public Health Insurance, Labor Supply, and Employment Lock byCraig Garthwaite, Tal Gross, and Matthew J. Notowidigdo, backs this up. If and when Obamacare goes into effect, there could be “substantial declines” in employment for those in low-paying jobs.

If all statesimplement the Medicaid expansion, our estimates suggest that approximately 4.2 million of theseprivately insured individuals will move into public coverage.

To place this number in perspective, theCongressional Budget Office estimated that if all states implemented the ACA Medicaid expansion,there would be 16 million additional Medicaid enrollees. In an earlier analysis, the CBOestimated that only 10 percent of the new Medicaid enrollees will previously have had privatecoverage. Our results suggest much larger crowdout among childless adults, which mayresult in a 16 percent increase in public health insurance enrollees under the ACA.

Joanne Peters, spokeswoman for the Department of Health and Human Services says Obamacare will actually help the small business owner, by allowing them to “pool risk” with other small businesses. However, that doesn’t appear to be what business owners are expecting, as they re-tool their workforces, downgrading full-time workers to part-time wherever possible. One restaurant chain owner in Denver believes Obamacare will cost him $400,000 annually, unless he makes changes.

Mr. Carstensen had 180 full-time and 40 part-time workers and is in the process of switching to 80 full-time and 320 part-time workers who clock no more than 28 hours per week. He is plowing ahead despite the Obama administration’s reprieve, he said, because “we need to get there anyway, and it will take until January 1, 2015, to make this transition.”

Kevin Drum at Mother Jones asks some interesting questions along these lines:

[I]f employers do decide to start dropping health coverage en masse, what will that mean? Is it genuinely a bad thing? Or would it be a good deal in the long run, increasing pressure on Congress to hasten the day when we have genuine universal coverage in America?

What Mr. Drum is missing here is the really important question: who is going to pay for “genuine universal coverage?” Henry Blodget notes at least 10 new taxes, including a 0.9% surtax on Medicare taxes for those making $200,000 or more and a tax on medical devices costing more than $100. In other words, you and I are going to pay for it, along with our employers. “Genuine universal es at a cost, and that cost is going to be full-time jobs, less hiring, lower salaries and higher taxes. How healthy.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
U.S. Catholic Bishops Correct Biden’s Debate Inaccuracies
The United States Conference of Catholic Bishops released a statement regarding remarks made by Vice-President Biden during last night’s debate. According to the debate transcript from the Washington Post, Biden stated, With regard to the assault on the Catholic church, let me make it absolutely clear, no religious institution, Catholic or otherwise, including Catholic Social Services, Georgetown Hospital, Mercy Hospital, any hospital, none has to either refer contraception, none has to pay for contraception, none has to be a vehicle...
Diversity Welcome, But Only within Very Strict Parameters
Gallaudet University is a unique institution. Founded in 1864 in Washington, DC to meet the educational needs of the deaf and hard-of-hearing, the school currently serves just under 2000 students in various capacities. As one might imagine, it is a munity, aware that they educate a group of people who have often been victims of discrimination. The school asserts: Gallaudet University as an institution embraces diversity… A university has an obligation to be a place where all views can be...
A Vote Worth Casting: What Makes Voting Valuable?
There’s more to voting than tallying up the number of yays and nays. Although you’d never guess it by the numbingly perfunctory attitude taken toward voting by most Americans—especially in this late hour—who see it either as the highest duty of a good citizen, or as an inconvenient inevitability. What makes voting worth it, anyway? Is it the possibility of shaping our nation’s future? The opportunity to express our deepest-held principles? Or is it worth it precisely because not doing...
No Bullies in Schools — Unless It’s the Government
Laurel Broten, the Education Minister of Ontario, stated on Oct. 10 that the “province’s publicly funded Catholic schools may not teach students that abortion is wrong because such teaching amounts to ‘misogyny,’ which is prohibited in schools under a controversial anti-bullying law.” Ontario enacted Bill 13 in June and it casts a wide net against bullying in schools. It is under this law that Broten has declared that Catholic schools may not teach that abortion is wrong. Broten noted, Bill...
Redistribution and the Sacred Right of Property
“Scandinavian economies are some of the most market-oriented on the planet” says economist Scott Sumner, who adds “Denmark is the most market-oriented country on earth.” This peculiar claim is even more curious considering that it is based on the Heritage Foundation’s 2012 Index of Economic Freedom. On the Heritage Index, which ranks countries based on ponents of economic freedom, the United es in at #10, lumped in with the “mostly free” countries. All of the Scandinavian countries are lower on...
Are Protectionism and Patriotism Incompatible Principles?
This morning at Ethika Politika, I argue that “acting primarily for the sake of national interest in international affairs runs contrary to a nation’s highest ideals.” In particular, I draw on the thought of Vladimir Solovyov, who argued that, morally speaking, national interest alone cannot be the supreme standard of international action since the highest aspirations of each nation (e.g. “Life, Liberty and the pursuit of Happiness”) are claimed to be universal goods. I would here like to explore his...
America’s Top Diplomat: Rich People Don’t Contribute to Economic Growth
“There are rich people everywhere, and yet they do not contribute to the [economic] growth of their own countries.” If such a statement were made by an activist at an Occupy Wall Street rally, most adults would chuckle and mend the budding young Marxist take a course in economics. But what do we do when the claim is made by Hillary Clinton at an event hosted by a former U.S. president and in front of an audience of global leaders?...
What is Subsidiarity?
What is Catholic Church’s teaching on the size of government? And what is the principle of subsidiarity? Our friends at CatholicVote.org have put together a brief video to help answer these questions. ...
The Campaign for Leviathan
The Obama Administration’s requirement for many religious institutions to provide contraception may be a relatively new policy. But as Notre Dame political scientist Patrick Deneen explains, the “origin of the mandate lies in an impulse that can be dated back to the beginnings of the modern era and the rise of the state.” At a recent conference in which I participated at the Georgetown Law Center, a number of speakers and participants described the HHS mandate as the necessary requirement...
Scoring the Vice Presidential Debate
From a purely political standpoint last night’s Vice Presidential Debate was probably a victory for both candidates. Vice President Joe Biden fired up his base with his aggressive and somewhat dismissive behavior towards Congressman Paul Ryan. Ryan of course did nothing to hurt Romney and showed he is prepared to be president in an emergency. Ultimately, the Vice Presidential Debate matters little to nothing in terms of e, and that’s why these two were probably in a better position to...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved