Tag Archives: Unemployment

Washington Post columnist bashes Obamacare

The Washington Post is one of the most liberal newspapers, but not the worst. For example, further left there’s the New Republic and National Journal, which are basically Marxist. Well the article I’m looking at today was written by a columnist who has  worked for both National Journal and New Republic. He’s even work for Newsweek which is just Democrat propaganda. Surprisingly, his WaPo article is actually fairly accurate about the problems with Obamacare, although his opinions of what to do instead are still left-wing.

He lists 5 reasons why Obamacare is bad policy:

  1. It increases uncertainty and decreases confidence when recovery from the Great Recession requires more confidence and less uncertainty.
  2. The ACA discourages job creation by raising the price of hiring.
  3. Uncontrolled health spending is the U.S. system’s main problem — and the ACA makes it worse.
  4. Obama’s program also worsens the federal budget problem.
  5. The ACA discriminates against the young in favor of the old.

Here’s are the details on numbers 2,4 and 5:

(2) The ACA discourages job creation by raising the price of hiring. This is basic economics. If you increase the price of labor, companies will buy less of it. Requiring employers to buy health insurance for some workers makes them more expensive, at least in the short run. Particularly vulnerable are low-skilled workers, notes economist Diana Furchtgott-Roth of the Manhattan Institute. Because the employer mandate exempts firms with fewer than 50 workers, there’s a huge incentive for firms to stop at 49, she says.

(4) Obama’s program also worsens the federal budget problem. Driven by Medicare and Medicaid, health care already exceeds one-fourth of the budget and is headed toward a third. It’s the crux of the problem. So Obama creates another huge health program. The administration’s retort: the program lowers the budget deficit. This is rhetorical hocus-pocus. Here’s what happens. From 2012 to 2022, the ACA raises federal spending by $1.762 trillion, estimates the Congressional Budget Office. However, all of this and a bit more is offset by tax increases and assumed cuts in Medicare. But these tax increases and cuts could have been used to shrink the huge budget deficits that pre-existed Obamacare. Now they can’t; moreover, the Medicare cuts might be repealed or reduced.

(5) The ACA discriminates against the young in favor of the old. Government policy already does this through payroll taxes that have young workers subsidizing Social Security and Medicare benefits. The ACA compounds the effect by forcing some young Americans to buy insurance at artificially high premiums that would pay for the care of a sicker, older population.

Higher unemployment, more debt and passing the costs on to the younger generation who can’t even find jobs with their worthless degrees in political correctness.

I think there are a lot of leftist nuts who are getting increasingly disengaged with Obama’s plan to “help the poor”. It’s not working because Obama has no idea how to help the poor. The way to help the poor is to give them jobs, and the way to give them jobs is to give more incentives to the private sector job creators, and the way to give incentives to the private sector job creators is to lower their taxes and decrease their regulatory burden. That’s what would actually work. Obama did the opposite, and nowhere is this more visible than in his Obamacare boondoogle.

Many of Obama’s young supporters now unemployed, living with parents

From Bloomberg News.

Excerpt:

In the hard economic times since 2008, when Foster voted for President Barack Obama’s message of hope, America’s young voters have been battered. They’ve disproportionately sustained job losses, wage declines and detours on their career paths.

For many, even the normal rites of passage to adulthood have been disrupted, as they delay such life steps as leaving home, getting married and having children.

[…]One in six 16- to 24-year-olds last year was idle, neither working nor attending school even for just an hour a week, according to an analysis of Labor Department data by Lawrence Katz, a Harvard economics professor. Among 20- to 24-year-old men, almost one in five was idle last year.

As of May, 41 percent of the nation’s net decline in full- time jobs from four years earlier was among under-25-year-olds, an age group that represents just 14 percent of the workforce, according to the Bureau of Labor Statistics. Under-35-year-olds account for 65 percent of the decline in full-time employment, though they comprise only 35 percent of the labor force.

Even among young people who have full-time work, real wages have dropped, while older workers’ pay has kept even or slightly improved. Median weekly earnings after inflation fell 6 percent among 18- to 24-year-olds in full-time jobs from 2007 to 2011, according to an analysis of Labor Department data by the Pew Research Center in Washington.

[…]The portion of 18- to 24-year-olds who say they will definitely vote dropped to 47 percent this year from 64 percent in 2008, according to polls conducted by the Institute of Politics during March and April of each election year.

Support for Obama also has declined, with the president besting Republican Mitt Romney 41 percent to 29 percent in the age group compared with 53 percent to 32 percent against Republican John McCain in 2008, according to the poll.

Sixty-six percent of voters under 30 cast ballots for Obama in the last election, the highest share for a presidential candidate from that age group going back to the start of modern exit polls in 1980. Turnout in the age group was the highest in 16 years, according to the U.S. Census Bureau.

Note that Romney’s support among young people is DOWN to 29 from McCain’s level of 32. DOWN.

What amazes me is that the support is still so high for Obama. But I think this just goes to show you how thoroughly indoctrinated young people are in the public schools, and how little diversity of opinion and critical thinking there is in higher education.

Obama: private sector job creation is “doing fine”

From CNS News.

Excerpt:

“The private sector is doing fine,” Obama said at a press conference on Friday. “Where we’re seeing weaknesses in our economy, have to do with state and local government — oftentimes, cuts initiated by governors or mayors who are not getting the kind of help that they have in the past from the federal government and who don’t have the same kind of flexibility as the federal government in dealing with fewer revenues coming in.”

State and local leaders were not the only ones to blame for a bad economy, as the president also blamed Republicans in Congress.

What are the facts? Is Obama right?

Here is a comparison of public and private pay in Ohio, for example:

Ohio Average Pay: Public vs. Private
Ohio Average Pay: Public vs. Private

Does Obama know how to create jobs? Let’s compare him to Bush:

Labor Force Participation 2012 (click for larger image)
Labor Force Participation 2012 (click for larger image)

There is no recovery. We haven’t created any jobs. We’ve actually lost 5 million jobs since the Democrats took over the House and Senate in January 2007.

When George W. Bush was President, we had unemployment around 4 or 5 percent for 8 years, which deficits as low as $160 billion in 2007. Barack Obama has had four budget deficits of a trillion or more in a row, and his unemployment rate has been double Bush’s rate. Bush has an MBA from Harvard and had private sector job creation experience. Obama doesn’t know anything about economics. He’s a lawyer who benefited from affirmative action, and who has never released his grades. You can’t elect an unqualified person and get performance.