Neotrotsky
Council to Supreme Soviet
Papa Obama signs Obamacare plan . Almost immediately, jobs reports stopped improving.
After the recession’s low point in January 2009, the monthly jobs reports improved at a rate of over 67,000 jobs a month. If that trend had continued, by the summer employers would have been creating hundreds of thousands of net new jobs. The White House had good reason to expect a recovery summer.
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 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.
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.
After the recession’s low point in January 2009, the monthly jobs reports improved at a rate of over 67,000 jobs a month. If that trend had continued, by the summer employers would have been creating hundreds of thousands of net new jobs. The White House had good reason to expect a recovery summer.
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 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.
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.
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