Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 24, 2026 7:04 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
How an Excess of Social Capital Can Hurt the Poor
What are the barriers that prevent the poor from moving into the middle class? One surprising answer, says Megan McArdle, is an excess of social capital. In the video below, McArdle explains why understanding how social and financial capital function in munities can help us be more effective in helping then poor. ...
Ex-Im Bank and the Unseen Costs of Political Privilege
With its authorization charter expiring at the end of September, the U.S. Export-Import Bank e under increased scrutiny from rabble-rousers and thehum-drum alike.An otherwise obscure fixture in the grand scheme of federal-government corporatism, Ex-Im finances and insures (i.e. subsidizes) foreign purchases of U.S. goods for those who wouldn’t otherwise accept the risk. So far, we’ve seen a variety of good arguments made against the bank. It privileges panies over others. It doesn’t meaningfully improve national exports, despite many claims to...
The Damage Governments Inflict on Religious Property
Wenzhou is called “China’s Jerusalem” because of the number of churches that have popped up around the city. And Sanjiang Church was, according to the New York Times, the “pride of this city’s growing Christian population.” That was before the government brought in bulldozers and razed the church building to the ground. The government claimed the the church violated zoning regulations, but an internal government document revealed the truth: “The priority is to remove crosses at religious activity sites on...
‘You Can’t Win If People Think You Don’t Care About Them’
Arthur Brooks, president of the American Enterprise Institute, challenges conservatives to think and act differently in the fight against poverty and e inequality. He says conservatives must acknowledge that we have e inequality in our society, and be willing to do something about it. That does not mean e redistribution. Rather, he says, we must be willing to do what actually helps the poor. Brooks is clear: what helps the poor is free enterprise. However, much of our political rhetoric...
Buying Babies: The Rise of Surrogacy In The U.S.
I’m sure Willie Nelson was not thinking about surrogacy issues when he wrote “If You’ve Got The Money, Honey,” but it’s applicable. $100,000? Check. 9 months? Check. If you’ve got the money honey I’ve got the time We’ll go honky tonkin’ and we’ll have a time We’ll have more fun baby all way down the line If you’ve got the money honey I’ve got the time While surrogacy is a huge industry in India, it’s ing a growing business here...
The Last Article on the Hobby Lobby Case You’ll Ever Need to Read
Are you sick to death of hearing about the recent Hobby Lobby contraceptive mandate kerfuffle? Me too. Yes, it’s one of the most important religious liberty cases in decades. But the constant debates about the case on blogs, newspapers, TV, radio, and social media, has left even those of us concerned about freedom beaten and exhausted. Besides, what is left to discuss? Is there really anything new that can be said? Surprisingly, the answer seems to be “yes, there is.”...
Student Debt and the Value of an Education
“Despite the mounting cost and swelling debt,” notesLaura Prejeanin this week’s Acton Commentary, “America’s demand for education, particularly higher education, has not decreased, defying typical market expectations.” This is what economists call inelastic demand, when people continue to buy a good or service regardless of an increase in prices. Though the post-recession job market is still difficult, growing student debt ought not to lead us to forget the dignity — and responsibility — of each individual student. When prices for...
The Economy of Love: Transformation Through Obedience
I’ve recently discussed the temptations of self-willed religion and the risks of disobedience, cautioning against self-chosen service and sacrifice. Over at the FLOW blog, Evan Koons highlights the power in doing the opposite. Quoting Stephen Grabill, director of programs at Acton, Koons notes that when submit our lives to Christ and obey God’s direct and divine calling, he “reverses the barrenness, isolation, and brokenness” in our lives, and thus, the world around us. When God told Abraham his descendants would...
Drug Cartels And The Allure Of Human Trafficking
CNN reports on why drug cartels are employing Fortune 500 practices to grow their businesses. Unfortunately, this means dealing in human trafficking. ...
Nuclear Iran: The Role of Islam and Capitalism
For years, the munity has pressured Iran to throw out its alleged nuclear weapons development program and has imposed crippling economic sanctions as a tool pliance. Two week-long talks have just resumed with the Islamic Republic, yet little is expected e out of them. Sanctions have only continued to mount in recent years, blocking both individuals and firms from engaging in mercial interactions with Iran, further solidifying its ongoing economic disaster. If Iran elects to agree to a settlement on...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved