Obamacare and Jobs: Is The Healthcare Law Driving Job Creation?
The goal posts have officially been moved once again. The Obama administration has postponed the “Employer Mandate” portion of Obamacare until 2015. Many have said that this is due to the 2014 mid-term elections, and since Obamacare will be a “train wreck,” in Democrat Max Baucus’s words, Democrats don’t want it affecting elections.
There is certainly some truth to this reasoning. But an even bigger reason may be that no one is adopting Obamacare. The administration has resorted to having librarians push the benefits of this new law that takes over one-sixth of the U.S. economy. The NFL wouldn’t touch it, along with other organizations. In another sleight-of-hand maneuver, the administration severely relaxed the standards for coverage. In fact, in some cases, you do not need to prove anything about your income, etc.; you just need to state that you want Obamacare.
The problem for Obamacare is that in order for it to really take hold, people must participate; otherwise it is very easy to defund and repeal the law. If nobody is using it, repeal is relatively painless. But if the U.S. populace is dependent on the coverage the law aims to provide, this presents large problems for repeal and reversal. Even though it is another “train wreck” and is essentially already bankrupt, what would happen if we decided to do away with Social Security and replace it with a better system? Large portions of the population would speak out, particularly at their polling places. Too many are dependent on it, and thus it has stayed in place, despite the impending doom it will cause.
But there is something even more curious going on, and that has to do with Obamacare and jobs. Last week, we apparently had a “good” jobs report that beat estimates. Is the economy really coming back? It depends on whether the creation of more part-time jobs signals a rallying economy. Consider this:
- As of the June 2013 jobs report, only 47 percent of adult civilians had a part-time job, and even more dropped out of the labor force.
- So far in 2013, only 130,000 full-time jobs have been created — yet we have created 557,000 part-time positions.
- In June alone, full time jobs went down by 240,000.
We have more jobs only because companies are hiring two people to do the role of one. Realistically, we might as well just cut the jobs number in half in order to equal the real number of jobs created — and that would be less than 100,000 per month. For the companies, the costs aren’t much different, since they pay for the same number of hours.
Why is this happening? It’s simple: Obamacare.
Employers are changing the way they construct their businesses in order not to have to comply with Obamacare. They are creating part-time positions, overseen by a few managers, instead of just hiring a full-time employee, since if they do, they’ll have to offer benefits per the rules of Obamacare.
Many companies are keeping themselves under the 50 employee number as well, so they are not subject to further regulation.
The above may be the real reason for the recent moves with Obamacare. If everyone is part-time, then the employer doesn’t have to pay any fines; so what good is a mandate? It won’t help get people on the Obamacare dole. Therefore, what do workers do? They move onto the federal or state-run healthcare exchanges, so more “full-time” hires occur, thus forcing people to sign up for the program and become dependent on it.
In the end, we still have an anemic economy with low GDP growth and multiple people now doing one “full-time” job. This does not translate into a real recovery.
Final thought: At last check, Obamacare is law. Can a president simply change a law in the midst of its implementation, without Congressional approval?by