Saturday, October 30, 2010

Obamacare will drive people from the workplace

I read some years ago that England has fare more sole proprietorships than the United States because people didn't stay with corporations for the health benefits, as we do here in the United States. I can't find the source for that, but now there's this:

Congressional Budget Office Director Douglas Elmendorf says the most significant economic effect of President Barack Obama’s health care reform package will be to drive people out of the job market.
“We estimated that the legislation, on net, will reduce the amount of labor used in the economy by roughly half a percent, primarily by reducing the amount that people choose to work.”
People will choose not to work because they could subsist on the generous federal insurance subsidies and Medicaid payments contained in the health care overhaul.
“Some provisions of the legislation will discourage people from working more hours or entering the workforce, and other provisions will encourage them to work more. The net reduction in the supply of labor is largely attributable to the substantial expansion of Medicaid and the provision of subsidies through the new insurance exchanges.”
Recall the inane remark of House Speaker Nancy Pelosi about Obamacare: “We see it as an entrepreneurial bill, a bill that says to someone, if you want to be creative and be a musician or whatever, you can leave your work, focus on your talent, your skill, your passion, your aspirations because you will have health care.”

We will see employment growth in healthcare, he said.
The research suggests that "gaining insurance coverage will increase an individual’s demand for health services by about 40 percent." Elmendorf said this alone "would represent an expansion of the health sector of the economy..."
Maybe I should become a doctor.

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