ObamaCare Side-Effect: Fewer Hours, More Gov’t Aid
” ObamaCare was sold as a way to achieve several goals: affordable care, guaranteed coverage, protections against bankruptcy.
But before such promises have a chance of being realized, the health reform appears to be delivering something else: Germany-style work-sharing.
Economists hailed Germany’s work-sharing for reducing unemployment during the recession. ObamaCare may be having a similar effect. But there are differences that make the health reform’s labor side-effects much more questionable.
Over the past year, retailers have cut average weekly hours for nonsupervisory workers by 2%, the sharpest such decline in more than three decades. Meanwhile, rank-and-file employment is up 132,000, or 1%, over the same period.
Some 2.3 million workers might have their hours cut due to ObamaCare’s employer mandates, even if there’s no negative impact on total hours worked, a recent study from the University of California at Berkeley Labor Center estimated.
The other part of the equation involves more government benefits for those facing shorter hours. This will come starting in 2014 from ObamaCare health subsidies. Households working less may also get additional benefits, such as food stamps.”
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