ObamaCare Changes Labor Market : Part Time Work - Full Time Dependency

I don't think we have all the facts or the understanding of government run health care especially when it comes to just how far reaching ObamaCare will be in causing our economy and our personal lives to change. This is what Mr Obama was talking about when made the statement that he wanted to "fundamentally" change America.

With advent of the collapse of the ObamaCare website and all of the unanswered questions regarding who will be covered and who will not be covered and what price everyone will have to pay for insurance, it becomes clearer ObamaCare is not a workable solution to the problem, but in fact, making the problem worse, much worse. But then, as many are suggestion, this was the plan from the beginning.

ObamaCare Will Contract the Labor Market
Source: Veronique de Rugy, "Why ObamaCare Will Make America Less Productive," Washington Examiner, October 18, 2013
October 28, 2013

Washington's shutdown is over and the debt ceiling has once again been raised, yet the long-term budgetary and economic outlook is no more certain that it was before Congress struck a deal, says Veronique de Rugy, a senior research fellow of the Mercatus Center.
Adding to the uncertainty is the implementation of President Obama's health care law, ObamaCare.

• The health care law requires employers with more than 50 workers to provide health insurance to all full-time employees (defined as working 30 hours or more per week) or pay a $2,000 penalty per worker.
• In that sense, the law increases the cost of current and future employees.
• It also gives businesses an incentive to hire more part-time workers to avoid the costs of providing health insurance or paying the penalty for full-time employees.

ObamaCare's tax increases will have a negative impact, as well. University of Chicago economist Casey Mulligan has done a significant amount of research on this issue.

• He found that it will have an important depressing impact on American's incentive to work, and hence, on our labor supply. In other words, ObamaCare will contract the labor market.
• In addition to the tax, the law also provides more subsidies to low-income families, and adds "four significant, permanent, implicit unemployment assistance programs, plus various implicit subsidies for underemployment."

Finally, there is another group of people who may have a strong incentive to work less under the new law. ObamaCare requires nearly everyone to buy insurance.

• Someone between 138 percent and 400 percent of the poverty line is qualified to receive a federal tax subsidy for health insurance bought on a government exchange.
• People making just above the 400 percent threshold don't.
• It is not crazy to think that some people will try to reduce their income below the 400 percent level among other ways by working a little less.

While there's no way to know how many Americans will decide to work less or even how much less to benefit from the subsidy or as a response to higher taxes. But we can be sure it won't be zero and there is a chance it will be many.
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