CBO says Obamacare to cost millions of jobs

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Since: Mar 08

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#1 Feb 4, 2014
A historically high number of people will be locked out of the workforce by 2021, according to a report by the Congressional Budget Office released Tuesday.

President Barack Obama's signature health-care law will contribute greatly to this phenomenon, the CBO said, citing new estimates that the Affordable Care Act will cause a larger-than-expected reduction in working hours—eliminating the equivalent of about 2.3 million workers in 2021.

In 2011, the CBO estimated the law would cause a reduction of about 800,000 full-time equivalent workers.

"CBO estimates that the ACA will reduce the total number of hours worked, on net, by about 1.5 to 2 percent during the period from 2017 to 2024, almost entirely because workers will choose to supply less labor—given the new taxes and other incentives they will face and the financial benefits some will receive," said the report.

"The reduction in CBO's projections of hours worked represents a decline in the number of full-time-equivalent workers of about 2.0 million in 2017, rising to about 2.5 million in 2024," it added.

The White House responded to the report, saying it does not show that Obamacare will reduce jobs.

The CBO estimated last year that 7 million people would sign up for health insurance through Obamacare in 2014, but computer problems have now lowered their estimate by millions, The Wall Street Journal reported.

The Congressional Budget Office released its annual budget and economic outlook. CNBC's John Harwood reports the CBO projects the deficit will be $478 billion by 2015.
The CBO also estimated the deficit will fall to $514 billion in the fiscal 2014 year ending Sept. 30, down from its previous estimate of $560 billion and a fiscal 2013 deficit of $680 billion.

The deficit will decline to $478 billion in fiscal 2015, any reductions will be short-lived. It will start to grow thereafter as the economy continues to struggle with an unemployment rate that fails to fall below 6 percent until late 2016.

Since: Mar 08

Location hidden

#2 Feb 4, 2014
During a Google Hangout session on Friday, fry cook Darnell Summers told President Obama that his hours were cut due to the Affordable Care Act.“We were broken down to part time to avoid paying health insurance,” he said. Summers explained that he makes $7.25 an hour and has been on strike four times seeking a wage increase.“We can’t survive, it’s not livin’,” he said.

The president responded by urging states to increase the minimum wage.“I am working to encourage states, governors, mayors, state legislators to raise their own minimum wage,” Obama said.“Obviously, the way to reach millions of people would be for Congress to pass a new federal minimum wage law. So far, at least, we have not seen support from Republicans for such a move.”

The president did not address Summers’s comments about the healthcare law.

I'm surprised Obama didn't blame FOX News...
well

Amherst, OH

#4 Feb 5, 2014
House Majority Leader Eric Cantor falsely claims that a new report confirms the long-held Republican belief that “millions of hardworking Americans will lose their jobs,” because of the Affordable Care Act. The nonpartisan Congressional Budget Office report says more than 2 million people will decide not to work, or will decide to work less, due to the law – not that they will “lose their jobs.”

Shortly after the CBO released the report that updated, and nearly tripled, its initial estimate on the reduction in the supply of labor due to the Affordable Care Act, Cantor fired off two messages via Twitter.

Cantor, Feb. 4: The CBO’s latest report confirms what Republicans have been saying for years now.

Under Obamacare, millions of hardworking Americans will lose their jobs and those who keep them will see their hours and wages reduced.

That’s not what the CBO report said. The report estimated a reduction in full-time-equivalent employment of about 2.3 million by 2021. But the drop is “almost entirely” due to a reduction in “the amount of labor that workers choose to supply”(see pages 117-127).

CBO, Feb. 4: The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor, so it will appear almost entirely as a reduction in labor force participation and in hours worked relative to what would have occurred otherwise rather than as an increase in unemployment (that is, more workers seeking but not finding jobs) or underemployment (such as part-time workers who would prefer to work more hours per week).

That last part — which notes that the drop is not due to an increase in unemployment or underemployment — makes clear that comments like Cantor’s are misleading.

Back in August 2010, the CBO estimated the health care law would “reduce the amount of labor used in the economy by a small amount—roughly half a percent,” a percentage CBO Director Douglas Elmendorf later pegged at 800,000 jobs. When Republicans, including Michele Bachmann, misused that report to claim the ACA would “kill 800,000 jobs,” we noted that the figure was mostly due to some Americans deciding to work less.

Why? The CBO has explained that those with low incomes would have more financial resources due to the expansion of Medicaid and subsidies to purchase health insurance, which would “encourage some people to work fewer hours or to withdraw from the labor market.”

Plus, the CBO said, some workers nearing retirement will retire earlier than normal because the law provides more protections for health insurance, such as limiting how much more companies can charge older people and requiring the coverage of preexisting conditions. In other words, the law will allow people the ability to leave their jobs or cut back their hours without fear of losing their health insurance.

Republicans also have made claims before about the ACA leading to an increase in part-time employment, but our previous analysis of trends in the number of people working part-time for economic reasons didn’t bear that out. And the CBO report confirms that “there is no compelling evidence that part-time employment has increased as a result of the ACA.”
well

Amherst, OH

#5 Feb 5, 2014
CBO, Feb. 4: In CBO’s judgment, there is no compelling evidence that part-time employment has increased as a result of the ACA. On the one hand, there have been anecdotal reports of firms responding to the employer penalty by limiting workers’ hours, and the share of workers in part-time jobs has declined relatively slowly since the end of the recent recession. On the other hand, the share of workers in part-time jobs generally declines slowly after recessions, so whether that share would have declined more quickly during the past few years in the absence of the ACA is difficult to determine.

In any event, because the employer penalty will not take effect until 2015, the current lack of direct evidence may not be very informative about the ultimate effects of the ACA.

In fact, the CBO report says in the short term (2014 to 2016) the law will increase employment while the economy is still weak.

With unemployment expected to remain higher than normal over the next few years, the CBO states, even if some people decide to work less,“other applicants will be readily available to fill those positions and the overall effect on employment will be muted.” Meanwhile, the report notes, health care subsidies to low-income Americans will lead to those people spending money on other things — which will create jobs.

CBO, Feb. 4:[T]he ACA’s subsidies for health insurance will both stimulate demand for health care services and allow low-income households to redirect some of the funds that they would have spent on that care toward the purchase of other goods and services — thereby increasing overall demand. That increase in overall demand while the economy remains somewhat weak will induce some employers to hire more workers or to increase the hours of current employees during that period.

The CBO report does provide some new fodder for Republicans who criticize the law for providing disincentives to work, much like other social welfare programs such as food stamps and welfare. The CBO says the ACA’s sliding scale of subsidies based on income will provide incentives for some not to work, or to work less, in order to avoid losing out on health care subsidies.
well

Amherst, OH

#6 Feb 5, 2014
CBO, Feb. 4: Subsidies that help lower-income people purchase an expensive product like health insurance must be relatively large to encourage a significant proportion of eligible people to enroll. If those subsidies are phased out with rising income in order to limit their total costs, the phaseout effectively raises people’s marginal tax rates (the tax rates applying to their last dollar of income), thus discouraging work. In addition, if the subsidies are financed at least in part by higher taxes, those taxes will further discourage work or create other economic distortions, depending on how the taxes are designed.

Finally, we should note that the CBO cautions that its ACA projections are “highly uncertain,” due to the government’s “limited experience with this type of program” as well as the “many uncertainties about how the market for health insurance will function under the ACA.” Nonetheless, to twist the CBO’s projections on voluntary job reductions into job losses is misleading.
Idiot Watcher

Humboldt, TN

#7 Feb 5, 2014
well wrote:
House Majority Leader Eric Cantor falsely claims that a new report confirms the long-held Republican belief that “millions of hardworking Americans will lose their jobs,” because of the Affordable Care Act. The nonpartisan Congressional Budget Office report says more than 2 million people will decide not to work, or will decide to work less, due to the law – not that they will “lose their jobs.”
Shortly after the CBO released the report that updated, and nearly tripled, its initial estimate on the reduction in the supply of labor due to the Affordable Care Act, Cantor fired off two messages via Twitter.
Cantor, Feb. 4: The CBO’s latest report confirms what Republicans have been saying for years now.
Under Obamacare, millions of hardworking Americans will lose their jobs and those who keep them will see their hours and wages reduced.
That’s not what the CBO report said. The report estimated a reduction in full-time-equivalent employment of about 2.3 million by 2021. But the drop is “almost entirely” due to a reduction in “the amount of labor that workers choose to supply”(see pages 117-127).
CBO, Feb. 4: The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor, so it will appear almost entirely as a reduction in labor force participation and in hours worked relative to what would have occurred otherwise rather than as an increase in unemployment (that is, more workers seeking but not finding jobs) or underemployment (such as part-time workers who would prefer to work more hours per week).
That last part — which notes that the drop is not due to an increase in unemployment or underemployment — makes clear that comments like Cantor’s are misleading.
Back in August 2010, the CBO estimated the health care law would “reduce the amount of labor used in the economy by a small amount—roughly half a percent,” a percentage CBO Director Douglas Elmendorf later pegged at 800,000 jobs. When Republicans, including Michele Bachmann, misused that report to claim the ACA would “kill 800,000 jobs,” we noted that the figure was mostly due to some Americans deciding to work less.
Why? The CBO has explained that those with low incomes would have more financial resources due to the expansion of Medicaid and subsidies to purchase health insurance, which would “encourage some people to work fewer hours or to withdraw from the labor market.”
Plus, the CBO said, some workers nearing retirement will retire earlier than normal because the law provides more protections for health insurance, such as limiting how much more companies can charge older people and requiring the coverage of preexisting conditions. In other words, the law will allow people the ability to leave their jobs or cut back their hours without fear of losing their health insurance.
Republicans also have made claims before about the ACA leading to an increase in part-time employment, but our previous analysis of trends in the number of people working part-time for economic reasons didn’t bear that out. And the CBO report confirms that “there is no compelling evidence that part-time employment has increased as a result of the ACA.”
Want to know why they will decide to work less? Because their supervisor will tell them that get
29 hours or less. You think that two and a half million people are working just for insurance? Get
Real or an IQ.
tiger high

Shreveport, LA

#8 Feb 5, 2014
Idiot Watcher wrote:
<quoted text>
Want to know why they will decide to work less? Because their supervisor will tell them that get
29 hours or less. You think that two and a half million people are working just for insurance? Get
Real or an IQ.
True about management dictating how many hours they work - but i do think that there are actually more than 2 1/2 million working for insurance - even before obama care - having no insurance is the largest issue when it comes to people losing everything they have due some catastrophic event - many, many people who have their own business (electricians, plumbers, mechanics and the list goes on) work for larger companies, in addition to their own business, so they can have insurance for their family - not uncommon in the manufaturing arena at all - when i was working in tennessee and arkansas, we had farmers who we allowed to take leave to plant and harvest crops - they were good workers and we knew that would return because of the insurance - was a good deal for both company and employee - best thing about it, government had not stuck their nose in it and screwed it up -
Idiot Watcher

Humboldt, TN

#9 Feb 5, 2014
tiger high wrote:
<quoted text> True about management dictating how many hours they work - but i do think that there are actually more than 2 1/2 million working for insurance - even before obama care - having no insurance is the largest issue when it comes to people losing everything they have due some catastrophic event - many, many people who have their own business (electricians, plumbers, mechanics and the list goes on) work for larger companies, in addition to their own business, so they can have insurance for their family - not uncommon in the manufaturing arena at all - when i was working in tennessee and arkansas, we had farmers who we allowed to take leave to plant and harvest crops - they were good workers and we knew that would return because of the insurance - was a good deal for both company and employee - best thing about it, government had not stuck their nose in it and screwed it up -
If you watched the press conferences you heard Obama's spin boys make the statement that now
people won't have to work 60-65 hours a week (their words) for their insurance. Now they can (and will) work less that 30 hours and pursue other interest. How many people do you know would
willingly give up half of their salary? How many people do you know that can make it on half of their income? When folks have part time jobs paying part time money, they won't have to worry
about insurance. They will qualify for and will receive Medicaid. Not trying to be snide, but how many of those good workers would have come back for 29 hours of work? More Big Brother making sure the people have to depend on Big Brother.

“I Never Read Your Posts”

Since: Dec 13

Location hidden

#11 Feb 5, 2014
I hate it when I can prove that Obama is lying.

It makes me start new stories about the black sonofabitch......I cant stand it because a negro is smarter than me!!!!!!!!!!

FA LA LA LA LA LA.......LA LA LA LA LA

Am I clear?

“I Never Read Your Posts”

Since: Dec 13

Location hidden

#12 Feb 5, 2014
I hate it when I cant prove that Obama is lying.

It makes me start new stories about the black sonofabitch......I cant stand it because a negro is smarter than me!!!!!!!!!!

FA LA LA LA LA LA.......LA LA LA LA LA

Am I clear?
Hard Worker

Fulton, MO

#13 Feb 5, 2014
Thanks ACA! I can quit my second job eventually!

“I Never Read Your Posts”

Since: Dec 13

Location hidden

#14 Feb 5, 2014
My two favorites words are, "I" and "HATE"

I am self centered egotistical hateful poor white trash that makes a above average income for my area, so that places me in the "better than you are" category in my social scene. I love getting thrown off of softball fields, and also the reason my wife left me is because she couldnt live with me...not to mention she found someone better in bed. But I gave the woman the best 15 seconds of her life...she liked to scream my name..but later found it was because I would bitchslap her during sex because she is a woman and beneath me. She doesnt make the kind of money I do ..Am I clear?

Oh well I still have my hobby as a truck stop lot lizard male prostitute Am I clear? A Mans gotta do what a mans gotta do.......Am I clear?

All women belong in the kitchen....because Fox News said so

“I Never Read Your Posts”

Since: Dec 13

Location hidden

#15 Feb 5, 2014
FA TO THE KA BOOM LA LA,..LA LA LA LA LA

yoo hoo guest? I miss you baby......would you like to be thebitch next time? Bareback anyone?

Am I clear?

“I Never Read Your Posts”

Since: Dec 13

Location hidden

#16 Feb 5, 2014
Oh Squid?????????? Where are you Squid you big handsome man you???????

Alvin???? Are you there???????

Ehm ehm OHHHHHHHHH WALRUS WHERE ARE JEWWWWW??????

(sigh) leaves me only "idiot watcher" then........so boring, and being he is from Dyersburg I'll have to show him how to do everything and put on the sheep suit to get him erect......Am I clear?

“I Never Read Your Posts”

Since: Dec 13

Location hidden

#17 Feb 5, 2014
Oh my...its Wednesday and time for me to pretend to be holier than thou for a couple of hours tonight......be back later after I look up some holy roller skirts

Am I clear?
well

Amherst, OH

#18 Feb 6, 2014
On Wednesday, Congressional Budget Office (CBO) director Doug Elmendorf refuted the claim that the Affordable Care Act is a job killer — a misleading takeaway from his agency’s new report that is being touted by Obamacare critics.

Testifying before the House Budget Committee on the CBO’s newly released economic projections for the next decade, Elmendorf addressed the report’s finding that the Affordable Care Act will reduce the labor participation rate and the total number of hours worked by an equivalent of 2 million jobs in 2017. According to Elmendorf, that statistic is being taken out of context to suggest that Obamacare will eliminate jobs.

“The reason we don’t use the term ‘lost jobs’ is there is a critical difference between people who like to work and can’t find a job — or have a job that’s lost for reasons beyond their control — and people who choose not to work,” he explained.“If someone comes up to you and says,‘The boss says I’m being laid off because we don’t have enough business to pay,’ any other person feels bad about that and we sympathize for them having lost their job. If someone says,‘I decided to retire or stay home and spend more time with my family and spend more time doing my hobby,’ they don’t feel bad about it — they feel good about it. And we don’t sympathize. We say congratulations.”

Even Budget Committee Chairman and former GOP vice presidential nominee Paul Ryan conceded that point in part.“Just to understand, it is not that employers are laying people off,” said Ryan at the beginning of the hearing.

In fact, the CBO report explicitly states that the estimated reduction in labor “stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor” and that “there is no compelling evidence that part-time employment has increased as a result of ACA.” Those notions are further supported by economic data on full- and part-time employment trends over the last several years. Simply put, the report finds that Obamacare will reduce the number of people who are forced to work a job merely for the sake of health insurance.

Elmendorf also noted that the ACA is actually expected to boost the economy in the near-term by making health insurance and medical care affordable for the poorest Americans, giving them the freedom to spend money in other areas of the economy.“On balance, CBO estimates that the ACA will boost overall demand for goods and services over the next few years,” states the report.

Since: Mar 08

Location hidden

#19 Feb 6, 2014
well wrote:
On Wednesday, Congressional Budget Office (CBO) director Doug Elmendorf refuted the claim that the Affordable Care Act is a job killer — a misleading takeaway from his agency’s new report that is being touted by Obamacare critics.
Testifying before the House Budget Committee on the CBO’s newly released economic projections for the next decade, Elmendorf addressed the report’s finding that the Affordable Care Act will reduce the labor participation rate and the total number of hours worked by an equivalent of 2 million jobs in 2017. According to Elmendorf, that statistic is being taken out of context to suggest that Obamacare will eliminate jobs.
“The reason we don’t use the term ‘lost jobs’ is there is a critical difference between people who like to work and can’t find a job — or have a job that’s lost for reasons beyond their control — and people who choose not to work,” he explained.“If someone comes up to you and says,‘The boss says I’m being laid off because we don’t have enough business to pay,’ any other person feels bad about that and we sympathize for them having lost their job. If someone says,‘I decided to retire or stay home and spend more time with my family and spend more time doing my hobby,’ they don’t feel bad about it — they feel good about it. And we don’t sympathize. We say congratulations.”
Even Budget Committee Chairman and former GOP vice presidential nominee Paul Ryan conceded that point in part.“Just to understand, it is not that employers are laying people off,” said Ryan at the beginning of the hearing.
In fact, the CBO report explicitly states that the estimated reduction in labor “stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor” and that “there is no compelling evidence that part-time employment has increased as a result of ACA.” Those notions are further supported by economic data on full- and part-time employment trends over the last several years. Simply put, the report finds that Obamacare will reduce the number of people who are forced to work a job merely for the sake of health insurance.
Elmendorf also noted that the ACA is actually expected to boost the economy in the near-term by making health insurance and medical care affordable for the poorest Americans, giving them the freedom to spend money in other areas of the economy.“On balance, CBO estimates that the ACA will boost overall demand for goods and services over the next few years,” states the report.
lol...
When those rotten teeth fall out of your mouth, collect them and place'm under your pillow. Some liberal democrat who works for the government will sneak into your room at night and give you some cash in exchange.

Sorry the free obama gas didn't pan out for your taxpayer subsidized mooching ass.
guest

Caruthersville, MO

#20 Feb 6, 2014
ComradeWinston wrote:
<quoted text>lol...
When those rotten teeth fall out of your mouth, collect them and place'm under your pillow. Some liberal democrat who works for the government will sneak into your room at night and give you some cash in exchange.
Sorry the free obama gas didn't pan out for your taxpayer subsidized mooching ass.
youve spent your whole life wanting people to like you but end up with people hating you
no wonder you dont know how to talk civil with anyone
jesuswasliberal

Fulton, MO

#21 Feb 6, 2014
guest wrote:
<quoted text>
youve spent your whole life wanting people to like you but end up with people hating you
no wonder you dont know how to talk civil with anyone
I still love and forgive him.
well

Amherst, OH

#22 Feb 6, 2014
ComradeWinston wrote:
<quoted text>lol...
When those rotten teeth fall out of your mouth, collect them and place'm under your pillow. Some liberal democrat who works for the government will sneak into your room at night and give you some cash in exchange.
Sorry the free obama gas didn't pan out for your taxpayer subsidized mooching ass.
U reckon until my teeth rotten and fall out

I could use my family and friends (most all live in the bootheel) if they don't want them?

How much did u get? r they all the same amount?

Thanks 4 the information. I just hope this isn't more of ur rumors and lies

Telling me I could get money and DON'T

That would b mean. I can trust u right?

OH WAIT...... U have been right about..... NOTHING

So I want get excited about the money.

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