The
Congressional Budget Office has reported that ACA subsidies will lower the
labor force participation rate in coming years. The Obama administration has
also decided to delay the small business mandate part of the ACA until 2016.Officials of
the Obama administration insisted that lower participation rates in the labor
force are beneficial. Lower income Americans can now decide to work less, to supply
less labor, to work part time or retire earlier. By working less Americans can
take care of family members or enjoy more leisure time.
The Obama
administration has in the same week admitted that the burdens that the ACA
places on small businesses are onerous. The costs of the ACA will therefore
cause smaller employers to demand fewer workers. Economically
speaking, there is not a real difference between workers supplying fewer hours
of labor and employers demanding fewer hours of labor. In terms of the
production of real wealth fewer hours of labor used in industry translates into
reduced overall production. Politically, however, there is a very real
difference between workers wishing to supply more hours, and employers
demanding more hours…..To Read More…
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