Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 10, 2026 3:00 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
Global warming + UFO conspiracy = crazy delicious!
Behold the rise of the perfect coalition: the climate change brigades and the Roswell True Believers! A former Canadian defense minister is demanding governments worldwide disclose and use secret alien technologies obtained in alleged UFO crashes to stem climate change, a local paper said Wednesday. “I would like to see what (alien) technology there might be that could eliminate the burning of fossil fuels within a generation … that could be a way to save our planet,” Paul Hellyer, 83,...
Advanced technology for eternal truth
Have you heard about Logos Bible Software? Here’s a bit about the founding of pany from the February NewsWire update (and on their blog here): “A couple of young Microsoft programmers with their entire careers of high-pay and lucrative Microsoft stock options ahead of them, dropped everything to join a partner and risk it all on pursuing their dream.” The story continues: “They weren’t satisfied with using their skills to help businessmen have access to the latest and greatest in...
U.S. high schools learning less
U.S. high school students are taking harder classes, receiving better grades, and from every indication in recent data, leaning much less than their counterparts fifteen years ago. Go figure. All the talk about spending more money and about improving testing and teacher standards and the end result is that two decades of educational reform may not have improved things overall. The U.S. Department of Education released two studies Thursday that raised very tough questions. David Driscoll, missioner of education for...
The power of amazing grace
Rarely have I seen a movie that moved me the way Amazing Grace did last evening. The new film, which opened across America on Friday, is the story of the life-long struggle of William Wilberforce to end slavery and reform British society in the late 18th and early 19th centuries. The movie pel Christians to understand how culture can be truly altered by incrementalism, deep faith, sheer perseverance, and quite often with great personal sacrifice. When the anti-slavery movement began...
Profit of doom
In a follow up to The Goracle’s energy bill imbroglio, Bill Hobbs has this stunner today: As the controversy over global warming hypemaster Al Gore’s voracious energy-eater mansion rolls on, there’s an angle I think merits deeper investigation than it is currently getting. In its original story, The Tennessean reported that Gore buys “carbon offsets” pensate for his home’s use of energy from carbon-based fuels. As Wikipedia explains, a carbon offset “is a service that tries to reduce the net...
Acton.org makes it through the wall
Good news (at least I think it is). Acton.org is a site not blocked by the “Great Firewall of China” (i.e. government censors). A big HT to GetReligion (which is blocked). ...
A Faustian bargain
As a follow-up to the rather wide-eyed optimism I expressed in a post almost a year ago, the city of Grand Rapids has rejected the sole bid application received for development of property on the Grand River. Duane Faust’s group did submit materials by the deadline, but the application lacked $65,000 in fees. reports that there were two other developers in the running, but “Faust’s bid was the only offer e into the city offices on Friday, but without $65,000...
The happiness conundrum
This piece from the Scientific American examines the difficulty that human beings have achieving happiness even in a world characterized by material prosperity. “Once average annual e is above $20,000 a head, higher pay brings no greater happiness,” writes Michael Shermer, in the context of Richard Lay૚rd’s observation that “we are no happier even though average es have more than doubled since 1950.” Shermer examines various reasons that increases in objective well-being don’t necessarily correspond to increases in subjective well-being,...
In defense of boring problems
Bjorn Lomborg has a better Powerpoint presentation than Al Gore. He’s also a more captivating speaker, and uses decent logic in his presentations. Is there any way we can get him an Oscar for the following 17 minute tour-de-force? Via Planet Gore, where a bunch of contemptible low-lifes hang out and engage in that filthy practice on a par with Holocaust denial – Climate Change Skepticism. I shudder just thinking about it. Oh, and Jay Richards blogs there too, the...
Government prayer
In an essay for TCS Daily last week, Arnold Kling wrote, “With or without the words ‘under God,’ the Pledge of Allegiance feels to me like a prayer. It’s a fairly nice prayer, and I have no problem with having it taught in private schools. I have no problem praying for my country — such a prayer is included in the standard weekly service at my synagogue. But government institutions ought not to be telling people how to pray.” The...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved