Feb 04, 2014 10:27 PM GMT
No, the latest CBO report doesn't say Obamacare kills jobs
The new report [pdf] does say that yes, by 2024 the law will reduce full-time employment by 2 million. But that's not 2 million jobs killed. In fact, the CBO actually confirms one of the things supporters of the new law said it would do: provide people who can't or don't want to work full time, who want to quit their jobs to stay at home with their children or to start a new business, the freedom to do just that. Right there in the report on page 117 (yes, that's a lot of pages for conservatives to read) it says:
"The estimated reduction [in CBO's projections of hours worked] stems almost entirely from a net decline in the amount of labor that workers choose to supply rather than a net drop in businesses demand for labor. [...]"
The CBO is not assuming that the law will lead employers to eliminate jobs or reduce hours, and actually says that there is "no compelling evidence that part-time employment has increased as a result of the ACA." It also says this:
The ACA's subsidies for health insurance will both stimulate demand for health care services and allow low-income households to redirect some of the funds that they would have spent on that care toward the purchase of other goods and services—thereby increasing overall demand. That increase in overall demand while the economy remains somewhat weak will induce some employers to hire more workers or to increase the hours of current employees during that period.
CBO Report Shows Affordable Care Act Frees Employees From Working Or Losing Employer-Based Insurance
The Congressional Budget Office has a report out today which is creating a lot of attention, largely due to a misleading but sensational headline in publications such as The Hill regarding decreased employment attributed to the Affordable Care Act. They predict that there will be two million fewer full time workers by 2017...The key factor here, as described The Wall Street Journal is that “the jobs figures largely represent Americans who will choose not to work rather than those who will lose their jobs or have their workweeks reduced because of the law.”