by Charles Blahous
e21 – Economic Policies for the 21st Century
February 07, 2014
For the past few years, a problematic phenomenon has troubled economists: US job growth has been anemic even as the unemployment rate has steadily dropped, mainly because large numbers of workers are dropping out of the workforce altogether. Now a new Congressional Budget Office report identifies another culprit driving workers out of the workforce: the Affordable Care Act (ACA). CBO finds that the ACA is deterring Americans from holding jobs and will do so much more in the future. Counter-spin efforts have included the White House’s argument that CBO’s report substantiates that the ACA will cause fewer people to be “trapped in a job” by the need to maintain health insurance. From any reasonable vantage point, the CBO findings are a disaster for the ACA’s advocates. Responsible leadership requires addressing the problem, not evading it.