It would be tough to limit the many ways The Affordable Care Act, or ObamaCare, is hurting the economy.
Articles have detailed how it is limiting innovation. Others have focused on the negative impact on the medical device industry due to higher taxes. Reports from the Federal Reserve have warned of the job loss. Some see the entire health insurance industry as being imperiled by The Affordable Care Act!
In an piece for Forbes, “Obamacare is dampening the job market is 3 Principle Ways,” Avik Roy has done an admirable job limiting it to those major areas.
Roy, in his excellent article for Forbes, states the three reason as Obamacare being the largest tax increase in history, increasing the cost of higher workers, and the exchange subsidies encouraging many to drop out of the workforce all together.
About the tax increase, Roy writes that, “Over the next decade, Obamacare increases taxes by more than $1.2 trillion: one of the largest tax increases in U.S. history, and the largest in nominal dollars.”
As to making it more expensive to hire workers, it is stated that, “Obamacare increases the cost of labor in two ways. The first is the law’s notorious employer mandate, requiring all businesses with more than 50 full-time-equivalent employees to offer federally-certified health coverage, or pay steep fines…Obamacare includes several mandates on the type of health coverage that employers must offer. For businesses that offered cost-efficient health insurance to their workers, this will increase labor costs.”
Many will leave the workforce, citing the work of, “Casey Mulligan of the University of Chicago has done a considerable amount of research on Obamacare’s impact on the disincentive to work, calling it “startling.” He finds that Obamacare’s subsidies are ‘roughly equivalent to doubling both employer and employee payroll tax rates for half of the population’; i.e., the half of the working population that is eligible for Obamacare subsidies.”
It must have been difficult for Roy to limit the damage of ObamaCare just three areas, but his article in Forbes was an excellent piece of work!