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.
For The Daily Reckoning
P.S. Are you ready for Obamacare? Let us know in the comments.
In an effort to cut costs and keep track of patients' records, governments could institute a medical guideline cookbook. Bureaucrats might think they have the best of intentions in mind, but these new rules would drag down the medical process and destroy whatever quality is left in our current system. John C. Goodman explains...
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.
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.
Taken individually, most people perform relatively well in their daily lives. They get up, drive to work and interact with various other people, largely without incident. But when big groups of people get together, they can be incredibly pig-headed, demanding "action" when the best course of action would simply be inaction. And before you know it, chaos ensues. Bill Bonner explains...
America's most precious resource isn't oil, natural gas, gold or any other commodity. But it travels through an extensive pipeline that, if severed, could signal an unprecedented breach in U.S. security. What is this pipeline, and why is it so imperative that the U.S. take steps to protect it? Byron King explains...
The S&P 500 just clocked a new closing high last week, while the Dow and the Nasdaq both fell just short or their previous highs. But under the surface, you'll find a few bits of evidence pointing toward lower prices. And right now, there are seeing several warning signs that could point to market weakness. Greg Guenthner explains...
US unemployment rates are some of the most dubious and debatable numbers in economics. And when you look at how the government fudges them it's easy to see why. Today Jim Mosquera attempts to make sense of them, and includes an insightful commentary on another controversial topic: minimum wage. Read on...
Over the years, the feds have made it increasingly difficult for you to maintain any semblance of financial freedom. So today, Addison Wiggin details one strategy that will go a long way to keeping them at bay, and allow you to keep more of your hard-earned money in the process. Read on...