Testifying today before the House Budget Committee, Congressional Budget Office (CBO) Director Doug Elmendorf confirmed that Obamacare is expected to reduce the number of jobs in the labor market by an estimated 800,000. Here are excerpts from the exchange:
Chairman [Paul] Ryan: “[I]t’s been argued…that the new health care law will create jobs and increase labor force participation. But if I recall from your analysis, it was quite the opposite. Is that not the case?”
Director [Douglas] Elmendorf : “Yes.”…
Rep. [John] Campbell: Thank you, Mr. Chairman, we’ll — and Dr. Elmendorf — and we’ll continue this conversation right now. First on health care, before I get to — before I get to broader issues, you just mentioned that you believe — or that in your estimate, that the health care law would reduce the labor used in the economy by about 1/2 of 1 percent, given that, I believe you say, there’s 160 million full-time people working in ’20-’21. That means that, in your estimation, the health care law would reduce employment by 800,000 in ’20-’21. Is that correct?
Director Elmendorf: Yes. The way I would put it is that we do estimate, as you said, that…employment will be about 160 million by the end of the decade. Half a percent of that is 800,000.
Just Thursday, I was in a discussion with a co-worker, a guy I have known for almost 30 years. He’s a good guy, intelligent and strongly Democratic. We were talking about the Health Care law, with his opinion being that the law was needed. We sparred back on forth as to what exactly could have been passed instead of an overreaching life intruding bill which became law. He believes the bill originally started as small steps, steps him and I can agree on which then exploded with addendum’s from both political parties and created the 100,000 page monstrosity which became law. Now there is no factual proof to this belief he righteously stated, yet because he deeply believes this to be true, facts are thrown out the window and it becomes gospel.
The reason I bring this up is because one main tenet which he believes to be true and that he continually brought up was that the law needed passage so to create jobs. Which of course was one way which the administration sold this travesty to the willing sheeple of the country. When pressed as to how job creation would be accomplished, he could offer no concise explanation. When I suggested it would constrict employment as employers hesitate to hire new personal because of the high cost associated with mandatory insurance. <crickets>