ObamaCare Hurting Jobs, Sales
CNBC is reporting:
The Affordable Care Act is cited five times in the Federal Reserve's latest Beige Book.
One of those citations notes that the law will likely drive up demand
for health care services. The other four describe the health care
reform as hurting employment and sales.
The notion that Obamacare, as the law is popularly known, would be a jobs killer was widely denied by its supporters. A report from the Annenberg Public Policy Center
accused Republican critics of misrepresenting facts when the bill would
hurt employment. It cited "non-partisan experts" who said the law
would have little or no effect on employment.
When the Congressional Budget Office examined
the law's impact on jobs, it saw only mildly negative employment
effects arising from early retirement and allowing the poor to work
fewer hours to meet their needs. The CBO didn't think that employers
would slow down hiring because of the law.
But that's exactly what appears to be happening.
And so it goes.
Interesting to say the least.
ReplyDeleteI presume the Fed is aware that companies are experiencing record sales and earnings as well as cash/cash equivalents on the books.
And just a few hours ago, the BLS announced a drop in the unemployment rate and added more jobs than forecast. But, CNBC is correct: the Fed Beige Book does have some vague references to adverse effects of ACA on hiring and sales.
I can see how ACA could have an adverse effect on hiring as employers who are mandated to offer coverage may be concerned about cost.
I fail to comprehend how ACA would curb spending since mandatory insurance or penalty has yet to take effect. The Fed may want to interview consumers in regards to spending patterns. Businesses certainly have an input on spending but may not have the complete picture.