This is part of a series on the new CBO report on the Budget and Economic Outlook. This first part focuses on the President’s health care law. Tomorrow’s post will focus on debt and deficits.
By Akash Chougule
The Congressional Budget Office (CBO) yesterday released a report that confirms the fears and predictions that many people have had since the introduction of President Obama’s healthcare law. The nonpartisan government agency’s report found that the Obamacare will exacerbate slow economic growth and employment as well as long-term deficits and the national debt, while failing in its overall objective of universal healthcare. The abject criticism is no longer coming only from the President’s opponents. The CBO report confirms that Obamacare has not only hurt the American health care system and failed to deliver on the President’s promises, but also means a grave future for Americans families and the nation’s economy.
The CBO report paints a bleak picture of the effect the President’s health care law will have on the job market and wages, especially for lower-income employees. The release comes in the midst of businesses across the country cutting hours, reducing wages, and slowing hiring as a result of the burdens levied by the bill. CBO estimates Obamacare will result in a loss of 2.5 million jobs through 2024, four times the original estimate of 800,000 jobs. According to The Hill, the White House responded by pointing out “the reduction in worker hours was almost entirely because of workers choosing to work less.” Indeed, as the report states, “By providing subsidies that decline with rising income (and increase with falling income) and by making some people financially better off, the ACA will create an incentive for some people to work less.” This disappointing response from the White House is a tacit admission of the increasing government dependence they have created.
This report also gives new credence to one of the biggest lies the Obama administration told the American people about the healthcare law. Politifact’s 2013 “Lie of the Year” was the President’s pledge that Americans could keep their health plans if they like it. This statement was echoed by numerous congressional Democrats, and over four million people have learned firsthand that was not true. Furthermore, the CBO projects that “between 6 million and 7 million fewer people will have employment-based insurance coverage each year from 2016 through 2024 than would be the case in the absence of the ACA.” The President also promised premiums would go down $2500, but they have gone up almost $3000 for the average family. Most importantly, President Obama promised he would “sign a universal healthcare bill…that will cover every American.” According to the CBO, in 2024, there will still be 31 million people in the US without health insurance – virtually the same number as before Obamacare became law.
These are pains that Americans will see and feel every day. Yesterday’s CBO report confirms how injurious Obamacare will be for American families. As evidence mounts, it is getting increasingly difficult for President Obama and his allies in Congress to deny that Obamacare is bad medicine for America.