Obamacare Shrinks Economy through Medicaid Expansion and Tax Credit Cliffs

Hans Bader

Obamacare’s expansion of Medicaid reduced employment in those states that participated in it by a statistically significant extent, according to a recent study by Georgetown University’s Tomas Wind: “I find a significant negative relationship between Medicaid expansion and labor force participation, in which expanding Medicaid is associated with 1.5 to 3 percentage point drop in labor force participation.” As Wind notes, Obamacare’s Medicaid expansion provided an unusually good test case for the effects of a government program, since it went into effect in some states but not others during the covered period:......To Read More.....