Conservative
Type 40
Thank you for killing job growth, Mr. President.
--Grace-Marie Turner - NYPOST.com
--Grace-Marie Turner - NYPOST.com
In the early months of 2010, the economy was starting to show signs of life after the recession. Then Congress passed the presidents health-overhaul law.
Debate over the ObamaCare laws potential impact on hiring and the economy has been fierce from the start. The president promised it would be a boon to both; then-Speaker Nancy Pelosi said the law would create 400,000 jobs almost immediately. Others argued the law would make businesses much less likely to hire new workers.
That debate should now be over.
The low point of the recession came in January 2009, when US employers shed 841,000 jobs in just that one month. But the economy slowly started to recover over the next 15 months; private employers began hiring workers at an average rate of 67,600 per month (net of layoffs). The economys high point came with the April 2010 report, when 229,000 jobs were added.
But ObamaCare was signed into law in late March, and the hiring freeze began. In the following months, the economy added an average of just 6,500 jobs per month (net of layoffs) -- less than a tenth the pre-ObamaCare average.
This doesnt prove that the health law is a major cause of the problem. But there is no question that the jobs recovery stalled after ObamaCare passed.
How does ObamaCare discourage hiring?
First, it adds unknown costs to hiring new workers.
The health law also discourages small businesses from becoming mid-size businesses because the mandate to provide insurance kicks in once you reach 50 or more employees.
As for those companies that already have 50 or more workers, the burden of having to buy expensive government-approved policies (or pay penalties) discourages them from hiring all but essential staff.
The evidence now is clear that ObamaCare is discouraging employers from hiring. The question is how long the president will continue to sacrifice the economy for the sake of his signature legislation.