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Obamacare Arrives. Full-Time Jobs Will Depart.

Written by Gary North on January 2, 2013

The threat of fines totaling $2,000 a year for not providing health care to full-time workers will be a great subsidy for  companies that supply part-time workers. They will be in greater demand.

Workers who already work less than 30 hours a week will find lots of new competition. They are likely to be locked into their positions permanently.

Any firm with 50 employees comes under the law. So, the smart move for businesses with 50 to 60 workers is to fire them.

Economics teaches that decisions are made at the margin. What does one more unit of this or that cost? That is the key price for all of the units.

Businesses can take two approaches. First, they can cut workers who work 30 hours a week to 29 hours. Or, just to be safe, 25 hours. Second, they can fire workers who work 30 hours a week and refuse to hire replacements. Both approaches are legal. Both make economic sense.

We are in a tight job market. We have been ever since 2008. The recovery is slow. This will make it slower.

The most quoted unemployment statistic is the one that compares unemployed people who are trying to find work to the number who have jobs. If they cease looking, they are not counted. So, the official rate of unemployment drops.

The less quoted figure counts underemployed workers, marginally attached workers, and unemployed workers who are still looking. This one is likely to rise, beginning this month. This is U6. It is much more resistant to improvement. It is in the range of 14.4% these days. This figure is likely to start rising in 2013.

There are no free lunches. There is no free health insurance. Someone will pay for Obamacare. The people who move into U6 will pay. But the media will not pay much attention. The U6 figure is not widely reported, and when it is, it appears late in the article.

Continue Reading on www.usatoday.com

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16 thoughts on “Obamacare Arrives. Full-Time Jobs Will Depart.

  1. shearwater says:

    This administration has not studied macroeconomics so they don't have a clue! All they know is "redistributive justice" a term originating in soviet communist mythology.

  2. Still whining in song? Both parties have more than a clue and useful idiots too. You, the populous are to blame and if you won’t face this fact and walk away from them the problem will never be solved. http://www.numbersusa.com / http://www.goooh.com

  3. Bob Marshall says:

    I jus today received my Obamacare package. My new shredder works great!

  4. Now ,You Are Out Of Job, What Are You Going T do Now. .. Yeah! I don't think it's funny.

  5. [...] status, in order to be under the magic number of “50″ full-timers. In fact, some economists believe that the health reform law will create a high level of competition among part-time workers. [...]

  6. [...] status, in order to be under the magic number of “50″ full-timers. In fact, some economists believe that the health reform law will create a high level of competition among part-time workers. [...]

  7. destroy a countries economy and you destroy its ability to defend itself

  8. David in MA says:

    If your really interested in how obozocare will function, go to or ask a veteran who is in the VA HealthCare System, a very fine example, yes, a very fine example.

  9. What would happen if a company had 150 or 200 employees…divided into 4 or 5 mini companies of 40 employees???

  10. The "Origination Clause" in the U.S. Constitution (Article I, Section 7) requires that taxes be initiated in the House. The Senate took a House bill dealing with veterans and deleted the title and all text, leaving only the bill's number. ObamaCare was then inserted. The Supreme Court characterized the penalties in ObamaCare as federal taxes, but was not asked and did not address the issue of which body of Congress initiated the taxes. The Pacific Legal Foundation has filed a suit (U.S. District Court for the District of Columbia) challenging ObamaCare on this issue. newsandopinions dot net

  11. verna whitney says:

    The dishonesty of federal elected officials will be the downfall of our country.

  12. The big O will ber delighted when all fo us are workign part time, and living out of a damned box

  13. I f they do not want to get the rewards working in this country, you should then just LEAVE. We do not need them. And this goes out to Marco Rubio, the government doesn't help us. Then who let you get to where you are now. You were refugees and this GREAT country the US let you in, and gave you a start.

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