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.
Some governments already are looking at how to advertise Obamacare, and some ideas brewing are goofy, while others are just awful.
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.
Computers are not smarter than the human brain... yet. Find out why that could change, and if you should be worried. Stephen Petranek has more...
A lot of people think about gold as a percentage of a country’s total reserves. They are surprised to learn that the United States has 70 percent of its reserves in gold. Meanwhile, China only has about 1 percent of its reserves in gold. People look at that and think that’s an imbalance. Jim Rickards has more...
So here’s the smart way to trade IPOs: You wait for the run-up and the subsequent fall. Then, when the price stabilizes and breaks above the bottom of the crash zone, you have a great chance to buy a “post-hype” IPO for the long haul.
The clock is ticking down to April 15th. TaxBot founder, Sandy Botkin, outlines the five big tax changes for 2015 you need know before you file...
The trouble with money printing, explains David Stockman, is that it's responsible for Tesla. Armed with earnings figures, he shreds the company’s visage to pieces...
Look, we're not contrarian just for the sake of being contrarian. Only idiots are. And yes, the market will eventually drop. But the charts will tell us when it's time to sell. And right now, they're screaming "BUY". There's simply no other way to put it.