Many articles have reported of massive job losses and reductions in hours for workers due to the requirements of The Affordable Care Act, or ObamaCare.
Three recent Federal Reserve Bank studies add to carnage.
A mission of a regional Federal Reserve Bank is to survey local businesses in the area to gauge the economic health of the area. Federal Reserve Banks in Atlanta, New York, and Philadelphia have reported that one-fifth of the employers surveyed report cutting employment due to the costs of The Affordable Care Act. If a worker puts in over 30 hours a week, then the employer must provide health insurance. The ObamaCare health insurance package is very expensive, imperiling the financial health of many businesses. It also makes American firms less competitive against foreign entities due to the higher costs, which are ultimately passed on to the consumer in the form of higher prices.
This hits very hard for small businesses.
About that, Doug Holtz-Eakin, former Director of the Congressional Budget Office, warned that, “for the smaller employers — those that have between 20 and 49 employees — you get a negative impact on jobs, you get a negative impact on wages in those jobs. What this means for small business as a whole is over $22 billion of earnings gone for their workers and 350,000 jobs.”
Major companies are suffering, too.
Articles have reported that Alcoa (NYSE: AA), a blue chip corporation that is a member of the Dow Jones Industrial Average (NYSE: AA), is shifting retired worker health care into health insurance exchanges. There are many excellent health insurance exchanges. There are also the disasters like the ones in Oregon and Maryland. HealthCare.Gov, the Federal Government health insurance exchange, does not exactly inspire confidence, either.
It will most likely get worse in the future for businesses of all sizes in the United States.
The Obama Administration has delayed or changed ObamaCare more than 30 times. That was obviously done so the supporters would not suffer in the November elections. But, as the Federal Reserve reports reveal, it will be employers and works who ultimately feel the pain of The Affordable Care Act.