What Fresh Hell Is This?

February 7, 2014

I Guess The Trib's Randy Bish Didn't Get The Memo

...or maybe he got a different one.

...or maybe he didn't read the news today (oh, boy).

Take a look at today's editorial cartoon:

The message is clear: "Obamacare is a jobs killer."  This is an obvious reference to yesterday's blurb in the Tribune-Review asserting the same thing.

Except we know all know it just isn't true.  Again, from the CBO report:
The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor, so it will appear almost entirely as a reduction in labor force participation and in hours worked relative to what would have occurred otherwise rather than as an increase in unemployment (that is, more workers seeking but not finding jobs) or underemployment (such as part-time workers who would prefer to work more hours per week). [Emphasis added.]
And here's something new that my friends at the Trib may or may not have read.  From the Washington Post:
Under questioning today before the House Budget Committee from Dem Rep. Chris Van Hollen, CBO director Douglas Elmendorf confirmed that in reality, his report suggests Obamacare will reduce unemployment...[Italics in original.]
...Van Hollen cited the report’s findings on Obamacare’s impact on labor demand, rather than supply. On page 124, the report estimates that the ACA will “boost overall demand for goods and services over the next few years because the people who will benefit from the expansion of Medicaid and from access to the exchange subsidies are predominantly in lower-income households and thus are likely to spend a considerable fraction of their additional resources on goods and services.” This, the report says, “will in turn boost demand for labor over the next few years.”

“When you boost demand for labor in this kind of economy, you actually reduce the unemployment rate, because those people who are looking for work can find more work, right?” Van Hollen asked Elmendorf.

“Yes, that’s right,” Elmendorf said.

Elmendorf added that the factor Van Hollen had identified was something CBO thinks “spurs employment and would reduce unemployment over the next few years.”

So there it is: The CBO report found the opposite of what some foes of the law claimed.
Randy Bish included.

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