ObamaCare’s Economic Destruction Exposed


RT_obamacare_pamphlet_jef_130703_16x9_608A new government study projects that Obamacare will kill 2 million full-time American jobs in 2017, confirming the approaching economic devastation about which the budget-busting program’s critics have warned for years.

The study came as Obama administration allies unveiled plans to saturate the airwaves with animal videos in a bid to dupe young women into signing up for the failing government program.

As the government report shows, contrary to the promises of President Obama, the Obamacare law will boot people out of their health care plans, encourage idleness, drive wages down, increase the government’s tax take, and fail to put a dent in the number of Americans without health insurance coverage.

In other words, it’s Wednesday at the White House.

The job destruction caused by Obamacare will climb to 2.5 million in 2024, according to ”The Budget and Outlook: 2014 to 2024,” a new publication of the Congressional Budget Office, the nonpartisan research arm of the U.S. Congress. “The decline in full time-equivalent employment stemming from the [Affordable Care Act] will consist of some people not being employed at all and other people working fewer hours…”

Both of those job loss figures are substantially higher than the comparatively modest estimate of 800,000 jobs lost that CBO provided in 2011.

The Affordable Care Act’s “largest impact on labor markets will probably occur after 2016, once its major provisions have taken full effect and overall economic output nears its maximum sustainable level,” says the new report.

Hours worked will fall by about 1.5 percent to 2.0 percent from 2017 to 2024 largely because some workers will opt to escape new taxes while others won’t need to work as much because they will receive subsidies from taxpayers. Lower-wage workers will be hit hardest. In the same seven-year period aggregate compensation (wages, salaries, and fringe benefits) will fall 1 percent compared to what it would have been otherwise, according to the report.

These trends “are likely to continue after 2024 (the end of the current 10-year budget window),” the report indicated.

But that’s just part of the misery President Obama’s signature legislative accomplishment will inflict on Americans in coming years.

Obamacare will cause paychecks to shrink.

In 2018, the ACA begins to impose an excise tax on some of the more expensive health insurance plans. Workers will pay that tax in the form of reduced after-tax compensation. When some employers limit their exposure to the excise tax by switching to cheaper plans, employees’ wages will rise but the extra compensation will be subject to income and payroll taxes, making workers’ tax payments higher than they would have been had Obamacare not been enacted.

Americans will continue being unceremoniously booted from their employer-sponsored health insurance plans, despite President Obama’s frequently repeated promise that Americans would be able to keep their health care plans. And as a result of the law, CBO and the congressional Joint Committee on Taxation (JCT) project that “between 6 million and 7 million fewer people will have employment-based insurance coverage each year from 2016 through 2024 than would be the case in the absence of the ACA.”

Under Obamacare, the number of uninsured people in the U.S., which Obama himself set at 30 million in September 2009, will grow. In 2024 there will be 31 million non-elderly U.S. residents without health insurance, according to CBO and the JCT.

Meanwhile, just in time for Valentine’s Day, Obama administration allies are hoping to invigorate the moribund enrollment process by having cute, fuzzy singing animals convince women to sign up for the failing government program.

This animal abuse consists of ads on television and in other media that are sponsored by Enroll America and the Ad Council, two left-wing pressure groups.

Enroll America is a corrupt 501c3 nonprofit that is funded by the Robert Wood Johnson Foundation, H&R Block, and companies that stand to profit from Obamacare, according to groupsnoop, a research website operated by the National Center for Public Policy Research. The Ad Council is an ongoing left-wing brainwashing exercise funded by a cabal of media outlets.

As the Daily Caller reports

“With the March 31 deadline to enroll fast approaching, Enroll America reports that many women in the 18 to 34 age group remain unaware about the new coverage options. According to the organization’s research, 81 percent of uninsured people are not aware that the deadline to enroll is March 31, and 69 percent do not know about the availability of federal assistance for lower income people. The ads will be offered in English and Spanish to target Hispanic women as well and feature a menagerie of house pets singing about enrolling for [Obamacare] ’today!’”

No one seems to know how many people have actually successfully enrolled in Obamacare-compliant health care plans. This seems especially true even at the highest levels of the federal government.

In his State of the Union address last week, President Obama fudged the Obamacare exchange enrollment statistics. “More than 9 million Americans have signed up for private health insurance or Medicaid coverage — 9 million,” he said.

As Brian Orelli of the Motley Fool explains, Obama’s 9-million figure might be “technically true” but it is essentially useless. “About 3 million Americans have signed up for private insurance on the federal or state exchanges, and around 6 million are now eligible for Medicaid,” Orelli writes, accepting government-provided figures as gospel.

But the 9-million number “doesn’t tell us what we need to know to figure out whether Obamacare is viable,” he adds. It is unclear how many of these alleged 9 million people are newly covered.

McKinsey & Co. reported last month that just 11 percent of people who signed up on the exchanges were previously uninsured. “It’s not an official number, but even if it’s in the ballpark, most people were just switching insurance,” Orelli writes.

Other research suggests that well under a million people have actually enrolled in Obamacare through the exchanges — meaning they signed up and they paid their premiums.

Michael F. Cannon of the Cato Institute concluded at the end of December that the Obama administration had fallen far short of its enrollment targets.

The administration wanted to enroll 3.3 million paying customers by the end of 2013 which would constitute 47 percent of the way toward its goal of enrolling 7 million paying customers by March 31. In fact there are only 2 million “sign-ups,” according to Cannon, and these sign-ups “are not paying customers yet, though the administration would like to give the impression that they are ‘enrollees.’”

Anecdotal evidence suggests that only between 5 and 15 percent of the sign-ups “have actually paid their first premium and are in fact enrolled,” notes Cannon.

“Only the government can get away with this. If Amazon.com counted everything sitting in their customers’ shopping carts as ‘sales,’ they would probably find themselves under indictment and the subject of shareholder lawsuits. I’m guessing President Obama would be outraged.”

Of course Obama would be. But he’s an imperial president and the nation’s number one media celebrity, so the rules about accountability don’t apply to him, especially when it comes to his signature monstrosity.

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  • truebearing

    “Anecdotal evidence suggests that only between 5 and 15 percent of the sign-ups “have actually paid their first premium and are in fact enrolled,”

    No surprise there. The people in the biggest hurry to sign up are those looking for the free ride. They are the ones who have little money, lots of health problems, and hope just signing up is enough. Many will find out they not only have to pay, but that their deductibles will have to be paid upfront should they need hospital care, but neither the media or Obama’s professional liars will tell them that.

    The Left’s coordinated rebuttal of the CBO report — that the 2 million lost jobs isn’t accurate and that Obamacare will give poor people the option to not work at all — is showing up on all of the mainstream media outlets. They are brazenly touting social parasitism to the poor as an alternative to working for a living. Textbook socialism.

  • Lanna

    Many are finding out just because they signed up, doesn’t mean they really have insurance. NO matter what Obama does, he cannot stop the realization of the failure of his policies!

    • objectivefactsmatter

      They have documents that are worth the same as (or perhaps a little more than) 0′Bama’s promises.

  • Steven Z-Man

    good, my dad can retire now.

  • physicsnut

    Unbelievable spin from the WHITE HOUSE straight to the NY Times on front page
    QUOTE
    By THE EDITORIAL BOARD

    A new report found that by reducing the number of full-time workers over a decade, the health care law will have a liberating impact for millions.
    END QUOTE

    - millions are LIBERATED FROM WORK = unemployment.
    Also heard it on NPR.

  • The Facts

    In the interest of full disclosure, Mr. Vadum should have linked to this article about his lord and master: http://mobile.nytimes.com/2013/10/06/us/a-federal-budget-crisis-months-in-the-planning.html?pagewanted=all

    Why not explain how his own boss wants to insinuate himself into healthcare so the Republicans can benefit from the graft as much as the Democrats?

    • UCSPanther

      Artist’s concept of what “The Facts” looks like:

  • JuneUSA

    Everyone needs to call their congress if you care about our country and what happens to the rest of your lives. So far the government has not done anything for us but they have rewarded themselves very well. They can now act on inside trading legally which we aren’t allowed to do, they travel all over the world at our expense, (just call it business), pass laws giving themselves a raise, benefits, special bonuses and on and on and on and them they pass laws so they don’t have to go by the laws like we do. Mean while you can quit work, or lose your job and you can sit around and smoke pot and have children or not, then donate them to the government, remember they don’t belong to you anymore. That is the wonderful world given to you by “Dear Barry and the Democraps.” Aren’t you thrilled? Just explain to me with less people working where is the money coming from for the pot and everything promised to you for welfare and food stamps? Of course, you realize that you will be giving up everything you own now. Right? I guess they haven’t given us that good news yet.

    • malachha avet

      Congress doesn’t give a hoot
      They are responsible for the mess

    • gawxxx

      good luck with that june , we are long past saving this cesspool, every man /women for themselves , isn’t ignorance bliss !

  • Rdlake

    All this while Congress keeps passing pork laden bills & the resurrection of performance bonuses to IRS employees. What are we to do.

    • objectivefactsmatter

      Get rid of RINOs. We can’t afford them these days. We need a true opposition party, not a party that tries to outflank the lunatic party.

  • nimbii

    In his new book “The Black Book of the American Left” David Horowitz describes “…the most powerful and pernicious of all human follies…the desire to stifle truth in the name of hope.”

  • bob smith

    perfect!

  • frodo

    It’s not going to “kill” jobs–people who would otherwise stay in the job market because of needing employer-provided healthcare would leave the workforce.

    “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).”

    This is pretty clear. Selective quotation doesn’t help anyone’s argument. If anything, this would create more opportunity, as at least some of those leaving the workforce would be replaced.

    • gawxxx

      sure frodo sure ! , if you trully believe that good luck with that” yellow brick road ” real estate also !

    • objectivefactsmatter

      Government incentivizing productive workers to opt out of producing stuff is not good and it’s only one component, not the bottom line analysis.

      You can’t spin this your way. It causes separations. Only a Marxist would assume some fungible workers come along to replace them in some perfect synchronous, centrally planned manner. Wait, we can build a national jobs database and in theory…

      • frodo

        Who knew that the CBO was run by Marxists!

        You’re assuming that these workers are productive and that they’d be in the workforce were it not for the need for employer subsidized health insurance.

        It’s ironic to make this kind of accusation when the right has an almost irrational faith in the ability of “job creators” to create jobs if only “government” would let them.

        • objectivefactsmatter

          “You’re assuming that these workers are productive…”

          Holy cow. How could I just assume that workers get work done?

          “…and that they’d be in the workforce were it not for the need for employer subsidized health insurance.”

          Very few people would work without incentives. You’re a Marxist or a dupe of Marxist ideas.

          “It’s ironic to make this kind of accusation when the right has an almost irrational faith in the ability of “job creators” to create jobs if only “government” would let them.”

          WTF? It’s about incentives. The government is removing incentives to be productive. You’re quite stupid.

          The government doesn’t “let them” create jobs by taking away the need for them to work and just make time available. Way to think like a child.

          Idiots. We’re surrounded by childish idiots like you.

          • frodo

            The essay above (and your comment) continues to make the error that the CBO itself tried to avoid having people make. These reductions wouldn’t be from jobs being “killed,” but from people leaving the workforce voluntarily (perhaps to pursue other things, like opening small businesses). It’s not madness to think that those positions could/would be filled by people looking to enter the workforce.

            I stand by the irony–it’s bizarre. How making health insurance at least potentially separable from employment removes incentives makes little sense to me. It wouldn’t be hard to see this as removing obstacles for some people who might want to strike out on their own but can’t.

            Moreover, I’m not only parroting the “job creator” language. The language of getting out of the way and “letting” them (whoever “they” are) create jobs isn’t mine.

          • objectivefactsmatter

            It should be clear from what I wrote that I acknowledge some jobs might be filled by new workers with different skill sets (or possibly similar). It’s still bad for the economy and not necessarily good for the people that opt out of work.

            “It’s not madness to think that those positions could/would be filled by people looking to enter the workforce.”

            It’s madness to assume that all of them will be and somehow some magic equilibrium is always reached just because leftists put on rose colored glasses for their own tragic ideas.

            “I stand by the irony–it’s bizarre. How making health insurance at least potentially separable from employment removes incentives makes little sense to me.”

            It’s quite simple. People work for money because they need to pay for stuff, not because they some times like to sit around in piles of it while others don’t.

            It’s not how we create worlds for Disney films but that is in fact what motives people to work in the first place, Even Marx knew that much. He just created a world where technology supposedly solved that whole need to work thing.

            “It wouldn’t be hard to see this as removing obstacles for some people who might want to strike out on their own but can’t.”

            Sure, in theory that could happen in a few cases. But come on man! That’s absurd to think that statistically this is likely to turn that in to a plus or to offset the clearly dominant fact that people will be penalized for working, and OTOH taken care of if they quit. People waiting around for free stuff are not usually the kind of people that invent new technologies like integrated circuits and microsurgery devices.

            I’m afraid your understanding of how stuff gets done is formed too much by the theories of the left rather than how our world works.

            “Moreover, I’m not only parroting the “job creator” language. The language of getting out of the way and “letting” them (whoever “they” are) create jobs isn’t mine.”

            You’re parroting and misapplying it. This is NOT an example of “getting out of the way.” Otherwise according to you and you comrades EBT cards and cheese programs would be job creators. Unemployment Insurance programs would be “job creators” and in fact that insanity comes from the mouths of people like Nancy Pelosi and other big fat lying panderers. So I realize you didn’t invent this BS. It’s still BS and it does not match up with what we’ve observed and learned from people who subscribe to Milton Friedman economic theories. IOW, the ones who actually know how things work. I’m including myself in the latter group.

          • frodo

            I simply have to disagree with much of what you say.

            The point of the CBO report is not that jobs will be “killed” (or, even as one SC Congressman put it: that 2.3 million workers will be “destroyed,” which speaks to his capacity to read) but that people will leave the workforce.

            How people are going to be penalized for working isn’t at clear to me, nor is it clear that even a significant proportion of those hours were being worked by people waiting for free stuff.

          • objectivefactsmatter

            “The point of the CBO report is not that jobs will be “killed” (or, even as one SC Congressman put it: that 2.3 million workers will be “destroyed,” which speaks to his capacity to read) but that people will leave the workforce.”

            I don’t agree with use of characterizations when describing economic factors. It leads to too many strawmen to attack. One could describe it as job relationships destroyed. In theory the job is left vacant, not gone. Which leaves the probably that some unknown number will be filled. But you still are incentivizing retirement from people who otherwise have economic incentives to work. Maybe you can find among them some anecdotes about how socially just that is. But eventually all of these stories that motivate us to turn towards stupid entitlement programs will leave us bankrupt and all will starve.

            You leftists need to grow up a bit. Count the money in your wallet before you spend it.

            “How people are going to be penalized for working isn’t at clear to me, nor is it clear that even a significant proportion of those hours were being worked by people waiting for free stuff.”

            What happens is people run in to large walls or cliffs (metaphorically speaking) where they have less money in their pocket because of income tax thresholds if they continue to work. Their net worth increases when they quit because our tax policies are already insane.

            And people still rant about taking more from “the rich” without reconciling the need to have consistent incentives for people to remain productive.

            And people don’t consciously wait for “free stuff.” What happens is the government creates these incentives that just become part of “the system” and “here’s what you should do.” What you should do is always take the free stuff. It’s just bundled so that you don’t feel bad about it.

  • WW4

    Two elections in the next two years to sink or swim on this issue.

  • gawxxx

    I must admit ,it is perversely amusing to watch the low info’s and their ilk tripping over each other while sliding down that cliff while their so called leaders ( morons )claiming all is well and just hang in there “all will be well “

  • objectivefactsmatter

    Remember, the DP is the party of magic. Job killing is good if they do it. It means people have more leisure time.

    Republicans are just jealous because they haven no magic. They just want to oppress people with work and no free stuff.

  • objectivefactsmatter

    “For Marxism to grow first you have to destroy the values and that economy the existed previous. Otherwise people wont accept the loss of their freedoms to authoritarian leftist rulers.”

    But you’ve constantly got to sell the idea that the system was always broken and failure a result of the brokenness, not incremental socialism.

    Only true communism can fix all of this. We just need a master plan and some computer models.

  • jobik8

    Nadszedł czas na właściwą i smaczną zupę. Czas, by odwiedzić stworzony przez nas portal – przepis na zupę chrzanową. Jeżeli nie wiecie, jakim sposobem przygotować zupę, nasza witryna na pewno bez żadnych przeszkód w tym wspomoże. Zapraszamy!