Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 3, 2026 9:03 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
Audio: Michael Matheson Miller on Pope Francis and PovertyCure
Michael Matheson Miller, Acton’s Director of Media and PovertyCure, joined host Hugh Hewitt on the Hugh Hewitt Show this afternoon to discuss the election of Pope Francis, and how his experiences in Argentina may influence his actions as Pope in addressing issues of poverty. He notes that Pope Francis is not a proponent of Liberation Theology, and quotes the new Pope’s earlier writings: We cannot truly respond to the challenge of eradicating exclusion and poverty if the poor continue to...
Audio: Rev. Robert A. Sirico Discusses Pope Francis with Hugh Hewitt
Acton Institute President Rev. Robert A. Sirico has been in Rome all week for the Papal Conclave, and joined host Hugh Hewitt on The Hugh Hewitt Show yesterday afternoon to discuss the new pontificate of Pope Francis. What kind of a man is Pope Francis? What will his priorities be for his pontificate? What is his view on markets? All these questions and more are explored in the conversation. Listen to the full interview here: ...
The Kirchnerian Economy
Sam Gregg writesof Argentina,whence the new Pope Francis hails, “Over and over again, Argentina has been brought to its knees by the populist politics of Peronism, which dominates Argentina’s Right and Left. ‘Kirchnerism,’ as peddled by Argentina’s present and immediate past president, is simply the latest version of that.”For a bit of the current economic context in Argentina, here’s the latest on Kirchnerian political economy as related by John Teevan: That’s the Argentine Way: In order to prevent the outflow...
Audio: Rev. Robert A. Sirico on Pope Francis and Service to the Poor
Rev. Robert A. Sirico, President of the Acton Institute, spoke from Rome with WJR’s Warren Pierce on Sunday morning about the new pontificate of Pope Francis. Sirico takes some time to discuss the character and style of Francis, and notes the following: This pontificate offers a real deep potential corrective to the misunderstanding of social justice… He has emphasized the poor but he has also been a fierce opponent of liberation theology. So what he’s introducing is a different way...
Will Pope Francis Go Left on Economics?
Will Pope Francis promote a leftist view of economics? Hot Air’s Ed Morrissey asked that question of Kishore Jayalaban, Director of Acton’s Rome office. Jayalaban says the impression that Francis will push economic arguments to the left is a misunderstanding of both Catholic economic thought and the economic situation in Argentina—where capitalism is much more rife with cronyism and corporatism than in the US. Read more about this story . ...
Beyond Aid: The Flood of Rice in Haiti
“We don’t just want the money e to Haiti. Stop sending money. Let’s fix it. Let’s fix it,” declared Republic of Haiti President Michel Martelly three years after the 2010 earthquake. Martelly was referring to foreign aid, $9 billion of which has been pledged to the country since the disaster. But financial aid has of course not been the only item sent to Haiti; the country has experienced a vast influx of goods, including clothing, shoes, food, and in particular,...
Protestants and the Roman Pontiff
Billy Graham meets John Paul II in 1981. Carl Trueman of Westminster Seminary makes some salient points about why Protestants should pay any attention at all to the doings in Vatican City (HT: Justin Taylor): Some may wonder what the point of reflecting on Rome is for a Protestant. At least threefold, I would respond. First, Protestants benefit from a conservative papacy: on public square issues such as abortion, marriage and religious freedom, the RCC has a higher profile and...
Education Inequality is Family ‘Inequality’
Over at the , Sarah Garland wonders how we can move toward ending “racial inequality in gifted education” programs. Garland laments the following: Gifted and talented programs have been the target of criticism ever since the concept took hold in the 1970s as huge demographic changes were transforming urban school districts. White, middle-class families were fleeing to the suburbs. Like magnet schools, accelerated programs for gifted students were attractive to many of these families and provided a way to counteract...
Michael Miller: Pope Francis Says Human Person is at Center of Economy
In today’s American Spectator, Acton’s Michael Matheson Miller focuses on Pope Francis’ “street smarts“: a man who knows poverty and economics at the most important and basic level. It’s a counter-intuitive tale of one of Latin America’s most significant bishops living in modest lodgings, cooking his own meals, and riding the crowded public transportation system in Buenos Aires. Even the small but telling gesture of paying his own hotel bill after the Vatican conclave drew media attention. As a priest...
Sen. Warren: Why Isn’t the Minimum Wage $22 an Hour?
In the United States we have approximately 314 million citizens. In the United States Senate, the upper house of our country’s bicameral legislature, there are exactly 100 senators. That means only 1 senator is selected for every 3.14 million people in the nation. Because two e from each state and the population is spread unevenly, the ratio of citizens to senators isn’t exact. Still, you’d think out of a pool of millions the chances are high that people selected for...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved