CBO: Obamacare Projected To Reduce Jobs By Over 2 Million, Nearly Triple Previous Estimate

Today in Washington, D.C. - Feb 4, 2014
The Senate reconvened at 10 AM today and resumed consideration of the conference report for H.R. 2642, the farm bill. At 2:35 PM, the Senate will vote on adoption of the conference report for H.R. 2642.

Yesterday the Senate voted 72-22 to invoke cloture (to cut off debate and move to a final vote) on the farm bill conference report.

The House Reconvened at 10 AM today and will be considering the following bills:
H.R. 3590 - to protect and enhance opportunities for recreational hunting, fishing, and shooting, and for other purposes."

Yesterday the House passed:
H.R. 1791 (391-2) — "To amend the Homeland Security Act of 2002 to codify authority under existing grant guidance authorizing use of Urban Area Security Initiative and State Homeland Security Grant Program funding for enhancing medical preparedness, medical surge capacity, and mass prophylaxis capabilities."
H.R. 357 (390-0) — "To amend title 38, United States Code, to require courses of education provided by public institutions of higher education that are approved for purposes of the educational assistance programs administered by the Secretary of Veterans Affairs to charge veterans tuition and fees at the in-State tuition rate."

A new study from the Congressional Budget Office (CBO) today confirms what Republicans have said about Obamacare since the beginning: the law costs jobs and will also cost trillions of dollars.

The CBO writes, “CBO’s estimate that the ACA will reduce aggregate labor compensation in the economy by about 1 percent over the 2017–2024 period—compared with what would have occurred in the absence of the act—is substantially larger than the estimate the agency issued in August 2010. . . . CBO’s updated estimate of the decrease in hours worked translates to a reduction in full-time-equivalent employment of about 2.0 million in 2017, rising to about 2.5 million in 2024, compared with what would have occurred in the absence of the ACA.  … CBO’s current estimate for 2021 is a reduction in full-time-equivalent employment of about 2.3 million. . . . The decline in fulltime- equivalent employment stemming from the ACA will consist of some people not being employed at all and other people working fewer hours . . . .”

The Hill summarizes, “The new healthcare law will slow economic growth over the next decade, costing the nation about 2.5 million jobs and contributing to a $1 trillion increase in projected deficits, the Congressional Budget Office (CBO) said in a report released Tuesday. The nonpartisan agency’s report found the healthcare law’s negative effects on the economy will be ‘substantially larger’ than what it had previously anticipated. The CBO is now estimating the law will reduce labor force compensation by 1 percent from 2017-2024, twice the reduction it previously had projected. This will decrease the number of full-time equivalent jobs in 2021 by 2.3 million, the CBO said. It had previously estimated the decrease would be 800,000.”

CNBC’s headline puts it more succinctly: “CBO nearly triples estimate of working hours lost by 2021 due to Affordable Care Act”

The Wall Street Journal adds, “The Affordable Care Act is projected to reduce the number of full-time workers by roughly 2.3 million people through 2021 and insure 2 million fewer people this year than previously estimated, the Congressional Budget Office said Tuesday. . . . The rolling impact of the law will lead to 2 million fewer workers in 2017, 2.3 million in 2021 and 2.5 million through 2024, the CBO forecast. This represents a 1.5% to 2.0% reduction in the numbers of hours worked. CBO last year projected 7 million people would enroll for health insurance through health care exchanges in 2014, but Tuesday it said technical problems that plagued the program's rollout forced it to lower its estimate by 1 million people.”

Guy Benson at TownHall identified, "The nonpartisan Congressional Budget Office (CBO) determined in early 2011 that the president's healthcare overhaul would cost the US economy 800,000 jobs. Democrats balked at the figure, insisting that the new law would be a job creation boon. Nancy Pelosi said a fully-implemented Obamacare program would create four million American jobs -- and 400,000 'almost immediately.' Implementation is upon us, and the CBO has revised its numbers."

As Senate Republican Leader Mitch McConnell said the day of President Obama’s State of the Union address, “I asked [the president] last year to prepare Americans for the consequences of this law. He didn’t do it. Today, those consequences are plain for anyone to see. . . . Obamacare just hasn’t worked like the Administration promised – in Kentucky, and across America – and that it’s time to start over with real reform.”

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