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Monday, July 25, 2011

ObamaCare's Effect On The Economy

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From Hot Air:
A new report out yesterday [July 19] from The Heritage Foundation shows private sector job creation dropped dramatically almost immediately after President Barack Obama signed the Patient Protection and Affordable Care Act (a.k.a. Obamacare) into law.

From the recession’s low point in January 2009 until April 2010, when Obamacare went into effect, the private sector created about 67,600 jobs a month. After the president signed PPACA into law, that number slowed to a meager 6,400 jobs a month — a more than 90 percent decrease or less than one-tenth the previous rate.

As the report states, correlation cannot prove causation — but the change in course is statistically measurable and testing reveals a structural break between April and May of 2010. Moreover, small-business owners have said Obamacare is a deterrent to hiring. Take Scott Womack, the owner of 12 IHOP restaurants in Indiana and Ohio, as just one example. Before Obamacare became law, he had development plans in Ohio. Now, he’s worried he won’t be able to carry out his original plans unless Obamacare is repealed. Those restaurants he planned to open would provide jobs not only for his future employees, but also for everyone involved in the construction of the restaurant buildings themselves.

As the Heritage report explains, Obamacare discourages hiring in three important ways:
* Businesses with fewer than 50 workers have a strong incentive to maintain this size, which allows them to avoid the mandate to provide government-approved health coverage or face a penalty;

* Businesses with more than 50 workers will see their costs for health coverage rise—they must purchase more expensive government-approved insurance or pay a penalty; and

* Employers face considerable uncertainty about what constitutes qualifying health coverage and what it will cost. They also do not know what the health care market or their health care costs will look like in four years. This makes planning for the future difficult.
Democrats once touted that Obamacare would create jobs, but the data underscore the reality that that’s not true for the private sector. The only jobs Obamacare created were within the new agencies and layers of bureaucracy the law added to the federal government....
A businessman's perspective on ObamaCare:



A health-care professional's perspective on ObamaCare:


We constantly hear about the necessity of repealing ObamaCare. But how likely is such a repeal? How often does a government program get repealed once that program goes into effect?

13 comments:

  1. If you go to fact.org there is a good set of charts about the difference in spending versus income for yoru government and it says a great deal.

    I personally have no issue with taxation increases, your country is amongst the lowest G12 taxing nations, my issue is with the debt ceiling and expenditure which is badly managed. You are spending more than you make and as the Greeks have shown, that the maths just does not work.

    Ultimately your government needs to make more money as much as it needs to cut spending and making money mostly requires tax increases. I fear that cuting spending is not enough.

    http://factcheck.org/2011/07/fiscal-factcheck/

    D Charles
    Gibraltar

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  2. factcheck.org not "fact", use the link on the bottom.

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  3. Damien,
    The dispute going on right now between Congress and the President is largely political -- mostly about the upcoming 2012 election rather than about any sound fiscal policy. Many recently elected ran on the platform of no tax hikes.

    your country is amongst the lowest G12 taxing nations

    True.

    But the middle class is being taxed to death. For example, on this household's net income of about $10,000, we pay over $4500 in federal taxes. Local real-estate taxes are oppressive as well. Our health-insurance premiums cost $12,000/year. People in this same situation -- and there are many -- find the words "tax hikes" fighting words.

    Those of us in the DC area are all too aware of all the wasteful federal spending.

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  4. This should not have dragged on like this, but that's what happens with a split congress and maniac president

    Debbie
    Right Truth
    http://www.righttruth.typepad.com

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  5. Aw come on. Forcing people to do things for nothing makes a liberal feel good. Now isn't that what's important.

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  6. My health care plan and options were working just fine for my family and I for the past 25 years. Now so far, under Obamacare, we've seen our premiums shoot up, our deductible shoot up. We've already been informed of bigger changes coming: our medical savings plan will be capped at $2,000.00 starting in January, not to mention that certain procedures and medicines will be reduced or no longer available to us. We ask the insurance company or the employees' benefit commission what is going on and the answer is the same, "We are complying with new federal health care regulations." This is why so many unions and big Dem contributors asked for and got waivers to opt of the plan. They knew. If this legislation was such a panacea and bringing us cheap, abundant health care, why would anyone want to "opt out" for any length of time? If the media was the house organ of the Democrats, this is a question they would hammer the administration with day and night.

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  7. word should be "wasn't" the house organ....

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  8. Included in Obamacare are 1700 more IRS agents. That's what Obama calls job creation.

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  9. 1700 more IRS agents cannot be a good thing!

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  10. Alligator,
    Now so far, under Obamacare, we've seen our premiums shoot up, our deductible shoot up.

    [...]

    This is why so many unions and big Dem contributors asked for and got waivers to opt of the plan. They knew. If this legislation was such a panacea and bringing us cheap, abundant health care, why would anyone want to "opt out" for any length of time?


    Indeed.

    ObamaCare is one huge scam -- designed primarily to redistribute wealth.

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  11. Remember Obama's promising of policies for those with pre-existing conditions?

    I looked into getting one of those for Mr. AOW as his premium is almost triple the norm because of pre-exiting conditions.

    Well, one cannot obtain such a policy if one already has insurance. One has to be uninsured for at least six months to qualify for one of these "discounted" policies.

    In other words, those of us who have paid in and paid in must continue to pay in for pre-existing conditions -- never mind that we clearly "paid our dues."

    Something else interesting about these "discounted" policies: Very few are signing up for them! Apparently, the uninsured have figured out that Uncle Sam will take care of them -- whether they have insurance or not.

    Obama's promise of abundant and affordable health insurance is one of the biggest lies of our time!

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  12. o/t - On proposals from Boehner AND Reid on raising the debt ceiling...

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  13. Same here folks, my monthly premium has gone up close to 20% and my dedecuctibles have doubled and I have no preexisting condition since Obamacare was signed into law.

    As to the chart---i say duh. You do not need an Ivy League education paid for by your weathly white grandmother who owned a bank in Hawaii to know this new program was going to make employers wonder wether or not to hire someone they dont know the cost of hiring will be. Only a democrat would assume employers are so ignorant of reality for only a democrat would elect a person with no experience and just assume he wasnt going to cost them more money out of their pockets..

    ReplyDelete

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