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CBO says ACA kills jobs — are you surprised?

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Posted February 4, 2014 by Craig Davidson at 03:22PM. Comments (13)

Were you waiting for the other shoe to drop with the Affordable Care Act? It did today with the announcement by the Congressional Budget Office providing an estimate on the effect of the ACA on jobs. The hullabaloo about employers cutting the long-held standard 40-hour workweek to beat costs of the ACA has now hit the fan. According to the CBO, those lost work hours due to the ACA will amount to job losses equivalent to more than 2 million jobs by 2017. Previous reports from the CBO estimated job losses due to the ACA at approximately 800,000 jobs.

Total hours worked will drop as much as 2% from 2017 to 2024 because of the ACA. A strange irony in this politically-charged drama is that the CBO expects less work hours to fall almost entirely on low-wage employees, a group that the ACA was designed, in large part, to help.

Todayís CBO report is one more piece of bad news for the presidentís troubled signature legislation that continues to spew a negative narrative and bad public relations.

Davidson, CEBS, is founder of Davidson Marketing Group, FutureOffice Network and FONHR. He is also on the faculty at the Sheldon B. Lubar School of Business at the University of Wisconsin, Milwaukee. Reach him at craigd@davidsonmarketing.com.

13 Comments

Posted by: Craig D | February 7, 2014 1:59 PM

Dear valued reader: Thank you for reading my brief reporting on the CBO report from last Tuesday.It was not my intent to get political. I did intend to voice my educated opinion on the economic effect of the ACA and its implementation. I did intend to call out the economic truths of what's happening with the ACA as I understand those concepts. Collectively, our country cannot withstand the unintended consequences of any law when those consequences do not improve our national debt, unemployment and underemployment situation or the quality of our health care system. Each of these economic variables are falling like dominoes, and each will continue to create problems for all of us as we watch other negative events occur because of an ill-suited law. I applaud the president for trying to do good, but I reserve the kudos because of the poor execution of the plan, it unAmerican values and high costs for employees, particularly younger employees and employers this year and increasingly so in the years to come. We are all Americans of a great country. We should consider other bipartisan proposals to fix our ailing health care system and abandon much of the ACA for our common good. Thank you to all who commented and will comment. Thank you all who read my writing in EBA.

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Posted by: John R | February 5, 2014 7:12 PM

@ Eric B...Thanks for your sane perspective! Your points are absolutely correct! This is article represents just more "right-wing" deception with misleading headlines. Socialism? Seriously?! Come on people, we're better than this! Here's what Fox Noise is NOT telling you: The "Obamacare" concept was originally supported and advocated for by the Heritage Foundation AND first implemented by a Republican Governor! That would be Mitt Romney. Remember him?

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Posted by: Eric B | February 5, 2014 4:26 PM

I found most of the comments made here, minus the comments about socialism (which were certainly valid) were quite uneducated.In fact, the article here was practically verbatim a republican reprint.The truth is far from what this article stated. In fact, the ACA will allow employees to choose when they leave their jobs, instead of being enslaved by employers who have access to health insurance. They won't be enslaved to businesses who provide health coverage before they turn 65 and access medicare (that terribly socialistic program that has saved millions from improverished status in America).The slant of this article should have been rejected outright by the editors but it seems so many are quick to tow a political line that is hell bent on maintaining the destruction of the middle class rather than helping it.

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Posted by: John P | February 5, 2014 2:37 PM

obamacare was never intended to increase healthcare coverage, since 100% of people have healthcare! It also was not intended to give everyone health insurance, since it intentionally did not cover 30 million people. This confirms what rational people always said -- the program will be a complete failure and crush our economy. CBO confirms it is going to cut the labor force participation rate! That will lead to greater taxes on the working class being necessary to pay for services of those looking to get their subsidized lifestyles and obummer phones.

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Posted by: Frances R | February 5, 2014 12:31 PM

How about trying a free market approach instead of statist policies? Central planning has never worked anywhere anytime in history. The Democrats deserve to be crushed in the upcoming elections for passing such a bad law.

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Posted by: Quentin L | February 5, 2014 5:39 AM

Really??? I have a number of clients that have cut back their staff 50% or more since this nightmare began. These people are ideologues. They have little concern about the condition and welfare of the citizenry. Their only concern is the agenda these puppets are accomplishing for their 'financiers'. Anyone putting their trust or faith in these mindless Mephistophelian minions is begging to be disappointed.

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Posted by: James P | February 4, 2014 3:38 PM

Margaret Thatcher was right when she said "The problem with socialism is that you eventually run out of other people's money". We're heading there with all this social engineering. And, yes, free market forces work best.

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Posted by: R S | February 4, 2014 3:35 PM

Well, not exactly: http://www.washingtonpost.com/blogs/fact-checker/wp/2014/02/04/no-cbo-did-not-say-obamacare-will-kill-2-million-jobs/

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Posted by: R S | February 4, 2014 3:34 PM

Well, not exactly: http://www.washingtonpost.com/blogs/fact-checker/wp/2014/02/04/no-cbo-did-not-say-obamacare-will-kill-2-million-jobs/

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Posted by: R S | February 4, 2014 3:34 PM

Well, not exactly: http://www.washingtonpost.com/blogs/fact-checker/wp/2014/02/04/no-cbo-did-not-say-obamacare-will-kill-2-million-jobs/

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Posted by: RANDY B | February 4, 2014 3:31 PM

This administration wants all Americans to be among the world's impovriched. They don't support the constitution.

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Posted by: RANDY B | February 4, 2014 3:30 PM

This administration wants all Americans to be among the world's impovriched. They don't support the constitution.

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Posted by: Jack W | February 4, 2014 3:10 PM

Just like the minimum wage. The unintended consequences of legislation meant to help the low income worker, in turn cause more harm. Nothing works better than market forces

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