Jason Farrell

All that “affordable care” we’re about to be hit with just keeps getting better.

“Ask almost any employer and there won’t be much doubt,” says Forbes writer and Daily Reckoning contributor John Goodman. “The Affordable Care Act is likely to raise the cost of labor, discourage hiring and have a negative effect on the economy.”

As it turns out, that’s a bit of an understatement.

Goodman cites the work of University of Chicago economist Casey Mulligan, an expert on labor economics. According to Mulligan’s numbers, “the tax effects that professor [David] Cutler left out are about 10 times greater than, and in the opposite direction of, those he conveyed to Congress… If… I am right that the overall labor market effect of the act is about 10 times larger… we might then expect the act to contract the 2015 labor market by about 3%, rather than expand it.”

A contraction of 3% means big job losses. About 4 million jobs, to be precise. This would, of course, end up added to the current jobs deficit of more than 8 million, according to the Economic Policy Institute.

Obamacare, meanwhile, purports to enable access to insurance coverage to tens of millions of new people. It will also broadly increase the number and type of costs that can be covered… including a lengthy list of “preventive services” everyone is required to sign up for.

“What we are describing is a huge increase in the demand for care,” says Goodman. “But the Affordable Care Act does nothing to increase supply. This is virtually guaranteed to put upward pressure on prices. To the extent that prices are prevented from rising, it will create enhanced rationing by waiting. And almost anything patients and doctors to do circumvent the cost of waiting will also add to the money cost of care.”

“The trouble for you… and me, frankly…. is more profound,” Addison Wiggin noted in The Daily Reckoning yesterday. “Let’s say you don’t give two proverbial defecates about the politics of the situation. Let’s also say you’re trying to figure out how to deal with the rising costs of education, food, gas, heat, etc., all while your stock investments and house ‘value’ decline… What are you supposed to do?”

Thank the government, of course, for its kindness and benevolence. After all, it’s for your own good.

Jason Farrell

For The Daily Reckoning

P.S. Are you ready for Obamacare? Let us know in the comments.

You May Also Like:


How to Use Public Health to Control Everything

Pierre Lemieux

In the envisioned public health utopia, everything needs to be controlled.

Jason Farrell

Jason M. Farrell is a writer based in Washington D.C. and Baltimore, MD. Before joining Agora Financial in 2012 he was a research fellow at the Center for Competitive Politics, where his work was cited by the New York Post, Albany Times Union and the New York State Senate. He has been published at United Liberty, The Federalist, The Daily Caller and LewRockwell.com among many other blogs and news sites.

  • Tom Sawyer

    Working toward single payer will allow many many talented people to leave jobs they are disatisfied with perhaps start new business or get a better position that will allow them to make more of a contribution. Who knows, it may even allow those who are now on welfare to seek employment because they no longer fear losing benefits.

Recent Articles

Addison Wiggin
3 Ways to Identify Your Own Private American Oasis

Addison Wiggin

No matter where you live in the US, it seems like some federal employee has his hand on your wallet. That said, not all states are created equal in that regard. And so today, Addison Wiggin details which states offer you the least intrusive options when it comes to dealing with the various levels of government. Read on...


The One Number Every Penny Stock Investor Overlooks

Jonas Elmerraji

When it comes to investing in small companies with explosive growth potential, there is one number investors tend to be fixated on: share price. But as Jonas Elmerraji explains, there is another number that is far more important when it comes to discovering quality investments on the cheap. Read on...


Winners and Losers in the Battle of Economic Stupidity

Douglas French

A lot of people are buying to a lot of bad ideas right now, based on faulty logic or blindly following a political agenda. But if you ask the right questions, you can expose these ideas, as well as the people who support them, and show how silly (and stupid) they really are. Thankfully, one man has been doing just that for decades. Doug French explains...


Smart Investments in the Mobile Revolution

Greg Guenthner

The world is obsessed with smartphones. Most people can't go ten minutes without checking their phone for status updates on Facebook or Twitter or any number of apps they happen to have. And while Facebook's stock continues to soar, it's only natural to wonder, "What's the best way to play this mobile revolution?" Greg Guenthner explains...


The US Debt Crisis that Will Never Happen

Chris Mayer

One of the most heated political battles raging across the western world is debt versus austerity. In the U.S. this debate reached it's apex in 2011 when the U.S. credit rating was downgraded by Standard and Poor's. In today's essay, however, Chris Mayer throws the debate out the window, explaining why he thinks a U.S. debt crisis will never happen...