Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Apr 20, 2026 3:35 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
Is higher education ripe for creative destruction?
The recent revelations of a nationwide college admissions and testing bribery scheme have met with a variety of reactions. There have been conversations about fairness and privilege in admissions practices. There have been expressions of lack of surprise, cynicism, or “that’s just how the world works.” And there are already the beginnings of a class-action lawsuit by students who claim their college degrees have been devalued by the rigged admissions system. There are a lot of reasons to be pessimistic...
Samuel Gregg on the French church after Cardinal Barbarin
Earlier this month a French court convicted Cardinal Philippe Barbarin for failing to report alleged sexual abuse by a priest of his archdiocese. This has further fueled the sense that the Church faces one of its most serious crises since the Reformation, says Samuel Gregg in a new article for the Catholic Herald: Barbarin himself has been a larger-than-life figure in French Catholicism. Gifted in languages, an engaging public speaker, a missionary in Madagascar, and a marathon runner, he publicly...
National healthcare can’t fail if there are no goals
As the Brexit debacle monopolizes UK news, the government quietly released a consequential announcement: The National Health Service (NHS) is considering repealing requirements that emergency rooms in England treat or release patients within four hours. The new guidelines vindicate critics of single-payer health care, who say the government inevitably rations care, downgrades its own standards, and then declares victory. The UK’s goal of a four-hour wait in accident and emergency rooms (A&Es) is roughly twice as long as patients wait...
The person at the center of the economy
When we think about economics we can tend to immediately focus on mathematics, data, and graphs, but at its core economics is the study of human action in a marketplace. Economics is a human science. Which means we need to have a clear vision of who the human person is and how he acts. Much of modern economic theory operates with the assumption of human beings as “rational maximizers.” This is called homo-economicus—economic man. Now the reduction of man to...
China rewrites the Bible
It’s no secret that as the Chinese economy enters a slowdown, the Chinese government has been taking an ever-more authoritarian approach towards virtually every aspect of life in the People’s Republic. In this regard, few areas have received more attention than religion. This ranges from the imprisonment of anywhere between 800,000 and 2 million Uighur Muslims (something explored at length by leading Islam and liberty scholar Mustafa Akyol) to the burning and demolition of Protestant and Catholic churches. Things are,...
What did the Christchurch mosque shooter believe? Inside the mind of a collectivist killer
As Muslims gathered for Friday prayers, a shooter livestreamed himself entering the Masjid Al Noor mosque in Christchurch, New Zealand, and killing 41 people with a semiautomatic weapon. He then drove to the Masjid mosque in nearby Linwood, where seven more have died. (An additional victim died off the premises, bringing the death toll to 49 as of this writing.) Police also found several improvised explosive devices on vehicles in the area. Authorities have arrested four people – three men...
Economists agree: Don’t raise the minimum wage to $15
When es to policy choices, professional economists are famous for being overly circumspect. President Harry Truman plained, “Give me a one-handed economist! All my economists say, ‘on one hand . . . on the other.’” There are some areas, though, where basic economic theory is so obvious that it’s not hard to find a majority of economists to agree. A prime example is the popular, but misguided, proposal to raise the minimum wage to $15. A recent survey of 197...
The EU’s self-defeating digital tax
In today’s global economy, pany that provides a successful product or service can earn billions of dollars a year. Governments steal a greedy glance and ask how they can get their “fair share” of this money. The latest example is the EU attempting to create “tax harmonization” among its members as it imposes a digital tax on “Big Tech” firms. The proposal is currently stalled, as more fiscally responsible nations like Ireland object to the EU’s plan to tax tech...
Who was St. Patrick?
Did St. Patrick really drive all the snakes out of Ireland? Was he ever canonized a saint? Was he even Irish? In this short video Timothy Paul Jones answers those questions and more. ...
Russ Roberts on Adam Smith and the limits of economics
Russ Roberts — economist and host of the excellent EconTalk podcast — wrote a penetrating essay on what we can learn from Adam Smith’s first book, The Theory of Moral Sentiments. According to Roberts, [N]ot everything that is important can be quantified. I worry that as economists, we too often are like the drunk at 1 am looking for his keys under the glare of a streetlight. You go over to help and when you fail to find the keys...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved