Home
/
RELIGION & LIBERTY ONLINE
/
Obamacare: A Pathway From Work To Welfare?
Obamacare: A Pathway From Work To Welfare?
Mar 20, 2026 11:48 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
Anthony Bradley interview: Tea Parties, Health Care, Black Liberation Theology
CBN News interviews Acton Research Fellow Anthony Bradley on “Theology, Politics & the African-American Community.” His new book, Liberating Black Theology — The Bible and the Black Experience in America, is now available from the Acton Book Shoppe. ...
The Science of Stewardship
In this week’s Acton Commentary I examine some of the issues surrounding concern for our planet’s growing human population. In “The Science of Stewardship: Sin, Sustainability, and GM Foods,” I argue that increased food production, augmented by advances in genetic modification, has a key role to play in meeting the needs of future generations. And in this panies like Monsanto have contributed greatly to our ability to address the need for increased yields. They have done so in great measure...
Roepke: Beyond Technique
First Principles, the excellent Web-based resource from the Intercollegiate Studies Institute, has posted another “classic” from its extensive archive of journal articles, this one by Wilhelm Roepke. I’m snipping a kernel from “The Economic Necessity of Freedom” (Modern Age, Summer 1959) because it so succinctly and powerfully sums up why a moral framework — and our “highest values” — are necessary for a market economy that is not only efficient, but humane. These values flow out of the “classic-Christian heritage...
What the Resurrection Means to Me
Praise be to the God and Father of our Lord Jesus Christ! In his great mercy he has given us new birth into a living hope through the resurrection of Jesus Christ from the dead. – 1 Peter 1:3 John Wesley said of the new birth, “It is the change wrought in the whole soul by the almighty Spirit of God when it is created anew in Christ Jesus.” A message he often preached was “Since we were born in...
Unbiblical Social Justice?
In a mentary, “Beck Vs. Wallis,” Acton Research Fellow Marvin Olasky takes another look at the dispute between Glenn Beck and Jim Wallis over the meaning of social justice. Olasky, provost at The King’s College in New York, offers suggestions on how to respond to those who would define social justice as merely the expansion of the welfare state. I can understand Glenn Beck’s frustration. As the Beck-Wallis tempest swirled on March 11, I spent 3½ hours in a long-arranged...
Review: When Hell Was in Session
“We can add our testimony to that of great heroes like Solzhenitsyn and Sakharov, who have vividly related what Communism is really about.” – Admiral Jeremiah A. Denton, Jr. World Net Daily Books has republished the classic When Hell Was in Session, the chilling account of Admiral Jeremiah Denton’s almost eight years as a prisoner of war of the North Vietnamese (1965-1973). The book, cowritten with Ed Brandt, was reissued in November 2009 with a new epilogue. A naval aviator,...
Rev. Sirico: Does Social Justice Require Socialism?
Acton Institute President and Co-Founder Rev. Robert A. Sirico recently delivered a talk on social justice and socialism at St. Thomas More Academy in Raleigh, N.C. The school’s mission is “dedicated to continuing the vital tradition of Catholic education by integrating the very best academic curriculum with the deepest spiritual wisdom of Catholic Christianity.” Rev. Sirico’s talk was part of the school’s Robert L. Luddy Speaker’s Series. Father Sirico at STMA from Randy Luddy on Vimeo. ...
Psalm 94
During Holy Week many Christians supplement their religious observances. Some, continuing in a denial that marks Lent; and others choosing to add something to their life in Christ’s worship and ministry. One of the things one can add that for many is sadly not a staple of their daily life is morning and/or evening prayer. In the prayer book that Anglicans use there are many prayers and thanksgivings but on Wednesday I was drawn again to the one “for our...
NIV Stewardship Study Bible an ECPA Christian Book Award Finalist
Earlier this week the Evangelical Christian Publishers Association announced that the NIV Stewardship Study Bible was one of five finalists in the Bibles category for the 2010 Christian Book Awards. If you are like me, the question begs, “Exactly how many new Bibles are published every year?” That question is quickly followed by another, “How many Bibles does the Christian world need anyway?” You may or may not be surprised to know that there is a Bible for just about...
Good Friday — Lamentations
Today is hung upon the Cross, He Who suspended the Earth amid the waters. A crown of thorns crowns Him, Who is the King of Angels. He, Who wrapped the Heavens in clouds, is clothed with the purple of mockery. He, Who freed Adam in the Jordan, received buffetings. He was transfixed with nails, Who is the Bridegroom of the Church. He was pierced with a lance, Who is the Son of the Virgin. We worship Your Passion, O Christ....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved