Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Feb 17, 2026 7:35 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
Gracious competition
So often we are bombarded with news of businesses accusing others of unfair trade practices, petition smashing, monopolization, etc. Every once in a while, its good to hear about the good business that goes on, the appreciation that pany has for another, and a customer oriented view of production. In that spirit, I offer up panies: Adobe (the creators of the PDF and Photoshop) and Apple. Apple’s recent foray into the image-editing world with the release of Aperture has many...
For Associate Justice – Samuel A. Alito, Jr.
In a move seemingly destined to cause a massive political fight on Capitol Hill, President Bush has nominated Judge Samuel Alito, Jr. to succeed retiring Justice Sandra Day O’Connor on the United States Supreme Court. In his years on the federal bench, Alito has earned a reputation as a reliable conservative voice, even earning the nickname “Scalito” for his philosophical resemblances to current Justice Antonin Scalia. Your thoughts on the nomination are e in ments section. (If you have an...
Add DDT to the Malaria-fighting arsenal
Acton Senior Fellow Marvin Olasky in a column today on looks at the “important new coalition” called Kill Malarial Mosquitoes Now that is working to bring the banned pesticide DDT back into battle against malaria. The disease, he writes, kills an estimated 1 million people annually — 90 percent of them Africans. The United States has been contributing about $200 million per year to Africa’s war on malaria. Four months ago, President Bush promised an additional $1.2 billion over five...
From the Bureau of Goldfish Zoning and Canine Regulation
Reuters reports Rome</city />’s latest laws: Fish can’t be put in fish bowls and dogs must follow a mandatory exercise schedule. “It’s good to do whatever we can for our animals who in exchange for a little love fill our existence with their attention,” said Monica Cirinna, the councilor behind the by-law. “The civilization of a city can also be measured by this,” she told Rome</city /> daily Il Messaggero. (see article) The civilization of a city can be measured...
Miers withdraws
And so the search for a replacement for Sandra Day O’Connor will continue: Harriet Miers withdrew her nomination to be a U.S. Supreme Court justice Thursday in the face of strong criticism from President Bush’s most conservative supporters, who say she doesn’t have the qualifications or experience necessary to serve on the nation’s highest court. ...
Grassroots microlending
There’s a new venture, Kiva, that according to the founder Matthew Flannery is “a startup focused on connecting lenders with micro-businesses online. We provide the world’s first and only online micro-lending opportunity and just opened to the public 3 weeks ago. We have now started over 30 businesses in Uganda and are scaling at a rapid pace.” The effort still looks to be in its infancy, but as of October 11 Kiva was officially out of “beta” testing. This means...
The myth of morality without faith
A flap over religion in schools developed last week at Newark High School in Delaware. According to reports, “The principal of a public high school apologized to parents for allowing a Christian-themed assembly that featured two Philadelphia Eagles players, saying he was misled about what the presentation would cover.” “Principal Emmanuel Caulk of Newark High School wrote in a letter that he expected the talk by players Tra Thomas and Thomas Tapeh to focus on ‘values, choices and challenges that...
A plea for circumspection
Gregory of Nazianzus, in his first theological oration, “An Introductory Sermon against the Eunomians,” makes a plea for appropriateness in the airing of theological disagreements. He writes, “If we cannot resolve our disputes outright, let us at least make this mutual concession, to utter spiritual truths with the restraint due to them, to discuss holy things in a holy manner, and not to broadcast to profane hearing what is not to be divulged” (ੵ). His concern is that public disagreements...
‘The Donald’ on success and responsibility
Real estate mogul and reality show guru Donald Trump made a guest appearance on the NBC soap opera “Days of Our Lives” last week and, in a real stretch, he played himself. The brief cameo was in the context of Mr. Trump’s visit to the Horton Foundation, a charity based in the fictional town of Salem. The dialogue between Trump and Mickey Horton gives us some insight into Donald Trump’s view of economic success and the resulting responsibility: Donald Trump...
Does pork get your goat?
John Stossel, the icon of indignation, has a piece today decrying the spending habits and attitudes of our Republican-led Congress. I will let you read his article for the details, but for what it’s worth, here are some reasons why I think the disgust Stossel projects is an entirely proper and fitting response to pork barrel spending. When a servant of the people makes his servitude a catch-all reason for indiscriminate exertions of spending power, we call this pork. And...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved