Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 11, 2026 3:24 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
6 Quotes: Ronald Reagan on freedom
Today is the 106th birthday of Ronald Reagan, the fortieth president of the United States. Reagan wasa great lover of America and one of the most eloquent advocates of liberty in modern history In honor of his birthday, here are six quotes on freedom by President Reagan: “Freedom is the right to question and change the established way of doing things. It is the continuing revolution of the marketplace. It is the understanding that allows us to recognize ings and...
Can prices predict the future?
Note: This is post #20 in a weekly video series on basic microeconomics. Prices can convey information about events. But can they even predict the future? Can we predict Middle East politics based on the price of oil futures? Or use a price-based system to predict the e of presidential elections? In this video by Marginal Revolution University, economist Tyler Cowen discusses prices and prediction markets and how they are used to make prediction about real-world events. (If you find...
To whom is given: A new documentary on the Christian call to business
There is often a temptation among Christians to segment and categorize “Christian calling” into our own preferred buckets, deeming certain jobs, careers, or vocations as more worthwhile or “sacred” than others. Yet our public ministry doesn’t begin or endwithin the walls of a church building or the confines of a conversation about conversion. Ourpublic worship and witness is not limited to work and service within a specific subset of “Christian-oriented” businesses or institutions. In a new documentary from Values &...
7 Reasons Christians should consider supporting school vouchers
While it took Vice President Mike Pence casting the deciding vote, Betsy DeVos was confirmed earlier today as the Secretary of Education. The opposition to DeVos was vehement, and based on a number of objections to her getting the job. But a primary reason why she was deemed by many to be unacceptable was her unwavering support for school vouchers programs. School vouchers—which are often conflated with the broader term “school choice”—are certificates issued by the government, which parents can...
Vocation vs. occupation: 4 callings in the Christian life
Is there a difference between “vocation” and “occupation”? The term es from the Latin, “vocare” – to call or receive a call. For almost two millennia in munities and cultures, vocation referred to a religious calling: a monastic order, missionary work or parish labor. During the medieval era, vocation expanded beyond the clerical and embraced medicine (the doctor), the law (the attorney) and teaching (the professor/teacher). Other occupations were respected, but not given the same status. The Reformation rekindled the...
Paul Ehrlich brings his bad economics to Vatican
“People Near Train Station” by Redd Angelo (CC0 1.0) In a recent article, Kishore Jayablan of Istituto Acton addresses the controversy surrounding the Vatican’s invitation to Paul Ehrlich, a known population control activist and the author of the 1968 book The Population Bomb.He was invited for a conference on “biological extinction.” Jayabalan finds this situation troubling: … the Pontifical Academies for Science and Social Sciences are giving a platform not just to bad economics but blatantly anti-Catholic, immoral social policies....
How to destroy freedom – and how to recreate it
Action Institute – THE CRISIS OF LIBERTY IN THE WEST THE BLOOMSBURY HOTEL * LONDON, UK In the West, we have no trouble conceiving of freedom as a means. Freedom, in this context,is defined as increased liberty to order my life with the maximum level of autonomy consistent with a well-ordered society. But classical man would have understood freedom as anend, according to Ryan T. Anderson, the William E. Simon Senior Research Fellow in American Principles and Public Policy at...
Video Roundup: Acton speakers on the Constitution, the Supreme Court and religious liberty
With the nomination of Neil Gorsuch to fill the seat vacated by the passing of Justice Antonin Scalia, the United States Supreme Court and the federal judiciary have once again taken center stage in the national political discussion. That makes this a fine time to share three Acton Lecture Series eventsfrom the past year that provide insight into the role of the courts in American society throughoutthe history of the country. First of all, we’re pleased to share for the...
Sirico: Betsy DeVos confirmation best choice for education crisis
The Senate today narrowly voted for a change in the status quo, and that is an answer to the prayers of millions of parents who have witnessed a steady plummet of their respective children’s test scores over the past few decades. Something, anything, someone had to happen to alter the downward trajectory of education of our nation’s youth. That someone is Betsy DeVos. Full disclosure: Betsy DeVos is a former board member of the Acton Institute. She and her family...
Samuel Gregg on secularism in France
“François Fillon” by Thomas Bresson (CC BY 4.0) The influence of Christianity in the French political sphere has been gaining ground in recent months and may be of benefit to believers and non-believers alike according to Acton’s Samuel Gregg. The heavy-handed secular arm is losing favor with the general public and its antagonistic stance towards Christianity is weakening. In a recent article, Gregg explains: Given French politics’ hitherto decidedly secular character, there was always going to be a backlash from...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved