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  • Sorry Dr. Dean, Obamacare Is Not Creating New Jobs

    In recent interview, doctor and former Democratic National Committee Chairman Howard Dean tried to make the case that Obamacare will boost small-business job growth.

    “But the fact is [Obamacare] is very good for small business. It’s incredibly good for small business,” said the one-time Democratic presidential candidate.

    Incredibly, Dean breaks away from his liberal colleagues and the White House by backing the results from a recent McKinsey & Co. survey. The survey was vilified for reporting that 30 percent of companies said they would drop employee health coverage once the taxpayer-subsidized health insurance exchanges from Obamacare start in 2014.

    “Most small businesses are not going to be in the health insurance business anymore after this thing goes into effect,” Dean said after endorsing the survey results. “That’s going to be the biggest boost to small business that has been done in years and years and years,” he added, predicting that Obamacare will create 80 percent of all initial new jobs.

    Dean is right that businesses could decide en-masse to drop employee health coverage. Obamacare stacks the deck so that it will likely be more cost-effective for companies to dump workers into subsidized government health coverage—and pay a fine—rather than support exorbitant premiums for government-mandated benefit packages. But to argue that somehow this frees companies up to hire more workers is nonsensical.

    Heritage analysts have detailed the many ways in which Obamacare will destroy job creation, starting with:

    Costly Tax Hikes. Curtis Dubay writes that Obamacare imposes numerous new taxes, fees and penalties, transferring more than $500 billion over 10 years from hardworking American workers and their families to Congress. That’s money that could be spent in the private sector for companies to take out new loans, expand businesses and hire new workers. Instead, bureaucrats in Washington will use it pay for new entitlements and costly subsidies.

    Employer Mandate Fines and Compliance Costs. Labor expert James Sherk points out that businesses with more than 50 workers must pay for the rising costs of health care coverage for their workers or face a penalty. Not only does this discourage smaller companies from expanding, but it also places mid-size businesses in uncertain territory. With the Health and Human Services Department still mulling what benefits must be covered in any health plan, companies have little idea how high health care premiums will go up in the next five years, making any business planning difficult. Additionally, the new administrative complexities from Obamacare will require many companies to incur more accounting and consulting expenses just to stay compliant with the law.

    Less Opportunity for Low-Income Workers. Heritage analysts also note that many Americans earning close to the minimum wage will likely see less hiring opportunities as employers are required to offer them costly health coverage. In fact, research by Katherine Baicker and Helen Levy found workers earning within $3 of the minimum wage have a higher risk of losing their jobs because of the employer mandate.

    “It doesn’t take a Ph.D. in economics to understand that this health care law is not the prescription for curing an ailing economy,” says Heritage’s Nina Owcharenko. What it will take is for Dean and others to admit that Obamacare was a mistake that must be repealed if companies have any chance of moving forward.

    Posted in Obamacare [slideshow_deploy]

    9 Responses to Sorry Dr. Dean, Obamacare Is Not Creating New Jobs

    1. Debra in NC says:

      CAN SOMEONE HELP? I can not find any agency or committee, including the Employment Security Commission that can (or will) answer this question: Once a person has exhausted their benefits, but yet are still unemployed, do we still get reflected in the total State and National Unemployment Rate?

      I have been told that the rate quoted in the Media is inaccurate, and I was curious as to HOW anyone knows your status once you fall off of the Employment benefits list? Also, there are many unemployed people that are not eligible for unemployment benefits, because they did contract work or worked for small businesses or individuals whom are no longer in business.

      No one has ever polled me or anyone else I know whom is still unemployed since exhausting benefits, so I just want to know how the unemployed number is actually determined?

    2. Debra in NC says:

      CAN SOMEONE HELP? I can not find any agency or committee, including the Employment Security Commission that can (or will) answer this question: Once a person has exhausted their benefits, but yet are still unemployed, do we still get reflected in the total State and National Unemployment Rate?Once a person has exhausted their benefits, but yet are still unemployed, do we still get reflected in the total State and National Unemployment Rate?
      I have been told that the rate quoted in the Media is inaccurate, and I was curious as to HOW anyone knows your status once you fall off of the Employment benefits list? Also, there are many unemployed people that are not eligible for unemployment benefits, because they did contract work or worked for small businesses or individuals whom are no longer in business. No one has ever polled me or anyone else I know whom is still unemployed since exhausting benefits, so I just want to know how the unemployed number is actually determined?

    3. Debra in NC says:

      CAN SOMEONE HELP? I can not find any agency or committee, including the Employment Security Commission that can (or will) answer this question: Once a person has exhausted their benefits, but yet are still unemployed, do we still get reflected in the total State and National Unemployment Rate?
      I have been told that the rate quoted in the Media is inaccurate, and I was curious as to HOW anyone knows your status once you fall off of the Employment benefits list? Also, there are many unemployed people that are not eligible for unemployment benefits, because they did contract work or worked for small businesses or individuals whom are no longer in business. No one has ever polled me or anyone else I know whom is still unemployed since exhausting benefits, so I just want to know how the unemployed number is actually determined?

    4. @USAGeorge says:

      Howard Dean is not wrong. Dean is lying,he knows what he's sprewing is a lie so call it what it is…._Dean is a drone,a snake,in short a liar.

    5. Debra in NC says:

      CAN SOMEONE HELP? I can not find any agency or committee, including the Employment Security Commission that can (or will) answer this question: Once a person has exhausted their benefits, but yet are still unemployed, do we still get reflected in the total State and National Unemployment Rate?

    6. West Texan says:

      Dr. Howard Dean is a big government socialist ideologue. His tunnel vision is meaningless to the greater issue of Obamacare.

    7. Bobbie says:

      Mr. Dean, WE DON'T WANT TO HAVE OUR PERSONAL HEALTH RULED BY GOVERNMENT!!! on top of it's premium expense of no accountability amounting in dollars and inconceivable non-sense. I see more then I care to! government protects the worker with a book and as long as that worker follows the book, they aren't accountable to anything that might not be in the book and protected from any irresponsibilities to the book!

      You always know a government employee in a health care facility. Many are there for the pay, not a drive from the kindness of their hearts. They are stiff and show no emotion. They communicate militantly as if it's part of the training. Some don't take their personal time to learn to speak English clear enough adding more stress and confusion to the patient trying to understand what's being said about their health.

      Sincerity in health care is a person who will do everything the person can to make it easier on one weaker. NOT TODAY! THE government HEALTH CARE STAFF IS PROTECTED OVER THE PATIENT!! the patient is obligated to make exception to neglect and unfriendly, emotionless treatment they're given (WHICH I WITNESS!) until the government insurance rules are fulfilled. The health of the people in this country WILL BE WISER to be put INTO their own hands if obama is your care. There's no reason to have to accept drastically less of what we know to be human decency and at a higher cost IS CRIMINAL but moreover, it's UNCONSTITUTIONAL!

      Over staffing in health care is expensive make-work and dangerous. Puts immense stress on patients, especially TERMINAL ONES!!! Sincere staffing in the medical field is efficient! Too many on staff conceals accountability for one persons own actions. great potential in miscommunication and lack of communication. mishandling, mismanaging. Because It's government, it's not defeat-able. Chronically ill? The illness will be grossly manipulated. Keeps obamacare workers busy getting their paychecks! back and forth from hospital to transitional. (witness!) It's not worth trusting or worth the employment rate! People of no accountability are in killer positions. Might be great for your agenda, Dean. But it's corrupt and focused mostly on money and make work jobs than anybody's personal quality of health care.

    8. scotty lad says:

      My understanding of the new health care bill , Obama Care, will require employeers to review thier employees tax returns. They would now have access to personal occupatation beyound the employer

      I would love to find that passage in the health care bill

    9. H Snyder says:

      Everything suggests that, as has been already stated, that Obamacare is not about health care, it is about government power over citizens. Rationing is definitely in the actual plan, and it will hit the elderly (except for people with influence in D.C.) worse because they require more medical care. Increased taxes are likely to go to the salaries of the thousands of new bureaucrats and regulation, not medical care for citizens. And, oh yes, non- citizens (read illegal aliens) will continue to get their medical care, perhaps at a higher level than at present.

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