July 20, 2011
Obamacare A Prescription For UnemploymentTopics: Political News and commentaries
Remember last year's "recovery summer"? The summer when job growth swelled and unemployment fell sharply?
As James Sherk notes over at The Corner, neither does anyone else. It never happened. Employers created few net jobs last summer. Unemployment did not budge. In fact, private-sector job growth maxed out at +229,000 in April 2010. In May 2010, net private job growth dropped to 48,000 and largely stopped improving. From then on, the reports improved at a rate of only 6,500 jobs a month -- a fraction of their previous rate. Unemployment still remains above 9 percent.
What happened? On March 30 the president signed his health-care plan into law. Almost immediately the jobs reports stopped improving.Read more. As Sherk goes on to point out, Federal Reserve officials report that this is exactly what is happening. And as readers will recall, it's also exactly what Republicans said would happen and the exact opposite of what the 'gang of 3' (Obama/Reid/Pelosi) promised.
Of course, correlation cannot prove causation, but there is good reason to believe that this was no coincidence. Obamacare significantly raises the cost of employer-sponsored health insurance for large employers and gives small businesses strong incentives not to hire more than 50 workers. This discourages new hiring.
Posted by Richard at July 20, 2011 5:05 PM
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