Another Republican Obamacare lie bit the dust today as CBO director Douglas Elmendorf testified before the House Budget Committee today that the ACA will reduce unemployment.
On page 125 of the report, the CBO says that the ACA will leave millions of Americans with extra money to spend, and that spending result in increased consumer demand, “The net increase in demand for goods and services will in turn boost demand for labor over the next few years, CBO estimates.Those effects on labor demand tend to be especially strong under conditions such as those now prevailing in the United States, where output is so far below its maximum sustainable level that the Federal Reserve has kept short-term interest rates near zero for several years and probably would not adjust those rates to offset the effects of changes in federal spending and taxes. Over time, however, those effects are expected to dissipate as overall economic output moves back toward its maximum sustainable level.”
Rep. Van Hollen asked Director Elmendorf, “When you boost demand for labor in this kind of economy, you actually reduce the unemployment rate, because those people who are looking for work can find more work, right?”
Elmendorf answered, “We’ve broken down the sizes of the various pieces in this act, so I don’t have any estimates of the effects of that particular channel you point to, but that particular channel you point is in fact something that spurs employment, and would reduce unemployment over the next few years.”
As Sarah Jones pointed out yesterday, the reason why hours worked is estimated to be decreasing in 2021 isn’t because employers are going to cut hours or lay people off due to the ACA. The reason is that people won’t have to work long hours just to keep their health insurance. People will be working fewer hours, because they won’t need the health insurance that comes with full time employment. That isn’t a bad thing.
The major lie that the Republican distortion of the CBO’s report was built on has been debunked. The ACA will be good for our underperforming economy.
Republicans lied about what is in the report, and many members of our lazy mainstream press went right along with it. Just like death panels and the “millions of people” who had their insurance canceled, the Obamacare is a job killer talking point isn’t true.
Republicans do not want people to have affordable healthcare, and they will tell any lie in order to make sure that millions of Americans are unable to see a doctor when they get sick, or are swimming in debt after an illness.
Denial of access to healthcare is just another variety of the economic oppression that is the Republican way.
Mr. Easley is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association