You don’t have to be an economist to understand the colossal disaster Obamacare is for our country, but when you actually take a look at the numbers, it seems even worse than imagined.
The problem, of course, is that liberal thinking tends to ignore the many basic facts and tenets of how economics actually works, favoring emotionally-based solutions to problems that plague our nation instead.
If a business owner has to take up more of his profits to pay for health insurance, he’s going to have to make up for that loss by passing on the associated costs to the consumer, and, possibly reducing employee hours, or worse, letting folks go entirely.
A new report offers dire numbers on the toll Obamacare has taken on the country, as a whole.
According to The Washington Free Beacon:
Obamacare has cost roughly 300,000 small business jobs due to higher health care costs, according to a new report.
The American Action Forum, a center-right policy institute, released findings Wednesday that rising premiums and regulations under the Affordable Care Act have had “dire” consequences for the labor market.
The report found the law has cost $19 billion in lost wages per year and forced 10,000 small businesses establishments to close their doors. The study covered employers with 20 to 99 employees.
“Research from the American Action Forum (AAF) finds regulations from the Affordable Care Act (ACA) are driving up health care premiums and are costing small business employees at least $19 billion in lost wages annually,” the report said. “These figures varied by state, but in 2015 the ACA cost year-round workers $2,095, $2,134, and $2,260 in Ohio, New York, and North Dakota, respectively.”
“Premium increases, a prospect regulators predicted when issuing the first ACA regulations, also significantly diminished the number of business establishments and jobs nationwide,” the report said. “Across the country, small businesses (20-99 workers) lost 295,030 jobs, 10,130 business establishments, and $4.7 billion in total wage earnings. Florida lost 17,950 jobs; Ohio lost 19,000; Pennsylvania lost 15,680; and Texas lost 28,010 jobs due to higher sensitivity to rising health care premiums and the ACA.”
Ben Gitis and Sam Batkins, the authors of the report, used data from the U.S. Census Bureau, the Medical Expenditure Panel Survey, and the Bureau of Labor Statistics for their findings.
“After the ACA became law, however, a one percent increase in total premiums was associated with a 0.012 percent decrease in average weekly pay,” the report said.
The numbers add up to roughly $3.9 billion in lost wages for small businesses with between 20 and 49 workers, which account for 20 million workers in the United States. The average worker for those businesses has lost $1,202 in annual pay.
Not only has the not-so-Affordable Care Act destroyed the backbone of our economy — small businesses — it has actually cost our nation a whopping $51 billion and increased the bureaucratic nonsense of a health care system already burdened with the addition of 172 million hours of paperwork.
If you take away the profit a business brings in, it isn’t able to expand. A lack of expansion means a lack of job creation, which, in turn, leads to folks struggling and out of work, with no way to provide for themselves.
Here’s to hoping Donald Trump keeps his promise and repeals this mess as soon as possible.
[Note: This article was written by Michael Cantrell]