Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 3, 2026 1:07 AM

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
Explainer: Who is Boris Johnson?
Boris Johnson, a champion of free trade and lower taxes, will serve as the next prime minister of the UK beginning on Wednesday, July 24. Officials announced on Tuesday that Johnson won 66.4 percent of the Conservative Party’s popular vote, besting rival Jeremy Hunt 92,153 votes to 46,656. In his victory speech, Johnson thanked his opponent, Jeremy Hunt, for being “a font of good idaeas, all of which I propose to steal,.” He also praised outgoing Prime Minister Theresa May...
How ideologues devalue and dismiss economics
Economics is often dismissed as ideological, reductionist, and mendacious. In the United States we see these criticisms increasingly from both the political left and right. This e as no surprise as the lessons of economicshave implications for the prudential decisions that make up much of our political life. Ideologues of all parties chafe at constraints. Carl Menger, one of the driving forces behind the marginal revolution in economics, was no stranger to these sorts of criticism. His essay, ‘The Social...
Video: Bruce Riley Ashford on religious liberty in a secular age
The Acton Lecture Series resumed on July 18 with a lecture by Bruce Riley Ashford, provost and professor of theology and culture at Southeastern Baptist Theological Seminary, speaking on the subject of how to maintain respect for religious liberty in a rapidly secularizing culture. The West has been going through a process whereby all references to God must be stripped from the public square, and religion itself is increasingly seen as implausible or obsolete. Ashford tackles the tough question of...
One nation under debt
The federal debt is a risk to our future. The nation’s growing debt will weaken our economy and threaten our safety and security. Unfortunately, politicians either avoid the issue or suggest reforms that sound good but can’t solve the problem. However, there is a way forward if we act soon, note John Cogan, Daniel Heil, and John Raisian. ...
Uruguay’s dignifying prison: Entrepreneurship as rehabilitation
The United States faces significant challenges when es to prisoner rehabilitation. According to a recent study, more than 700,000 prisoners are released annually from federal and state prisons. Unfortunately, “within three years, 40 percent will be reincarcerated.” To curb that trend, we’ve seen a range of efforts to improve correctional education and find better ways of supporting prisoners in their journeys toward social reconnection. Yet one of the most effective and inspiring examples is found in a country not typically...
Culture and creativity: Thoughts on our environment
Between a summer heatwave in the United States and Europe and a recent speech by President Trump, the topic of climate and environmental policy and conditions has been even more prominent than usual lately. Having spent most of the past year as a Fulbright postgraduate scholar in Australia, including a very hot summer during which the Green New Deal proposal was announced, I’ve been recently reminded of a conversation I had with another scholar on the topic of climate and...
Alejandro Chafuen in Forbes: Opus Dei and Jesuit priests against socialism
For most of the 20th century, Marxism set its sights on state authority and openly political and economic goals. In more recent decades, though, many proponents of Marxism and other socialist stripes have sought to sow change on a societal and cultural level – a trend which some have termed “cultural Marxism.” Two authors who not only condemned Marxism but also saw its cultural transition early on are Monsignor Fernando Ocáriz Braña, current prelate of Opus Dei, and Rev. Enrique...
Acton Line rebroadcast: Tackling populism with Ben Domenech
Populism is gaining traction, both abroad and in the United States. In 2017, the Swedish libertarian think tank Timbro and the European Policy Information Center released their “Authoritarian Populism Index,” showing that populist parties have gained the highest percentage of the vote in nine countries, including Hungary (65.2%), Poland (46.4%) and Greece (45.1%). Zoltán Kész, co-founder of the Free Market Foundation in Budapest said in 2015 that “Populists are especially dangerous enemies, because they are strategizing in the terms of...
A victory for socialism? The Israeli Kibbutz
While eating lunch at an Israeli Kibbutz last winter, I learned firsthand about what used to be a self-contained, munity. I was struck by the local guide’s positive view of socialism, believing it to produce munal life and economic prosperity. The guide’s praise only echoes A.I. Rabin and Benjamin Beit-Hallahmi from Michigan State University who wrote that “[t]he most successful attempt at building a mune has been the Israeli Kibbutz.” The optimism expressed by these observations is not without cause...
Bernie Sanders: The apologist for inequality
Since Bernie Sanders announced his candidacy for president in the 2020 election, he has brought a seemingly disastrous and looming problem to the attention of the American people, much like he did in his 2016 run: e inequality panied by the tyrannical rule of the elite 1%. Why did someone who seems to be so radical have such a big influence on the Democratic primary in 2016, and have such support in this new race? It’s because he took something...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved