The Affordable Care Act, aka Obamacare, has suffered numerous assaults – repeal efforts, crippling technical issues, miscommunications, delays and more. However, it continues to survive. Its proponents talk up the good news; while its opponents talk up the bad. There doesn’t seem to be a middle ground – or not much of one. With its new report, the Congressional Budget Office (CBO) has stirred the pot again. Its claims of the ACA will lead to increased wages has both sides in a frenzy.
The CBO projects a decline of approximately 2.0 million full-time-equivalent works in 2017, rising to around 2.5 million in 2024 by 2024 – due to the Affordable Care Act. Basically stating that workers will no longer feel chained to their jobs due to the health insurance and, therefore, opt out of the job market on their own volition. A potential side benefit could be improved health, due to better healthcare, which may make workers more productive. Additionally there will be a increased demand for goods and services, that will lead to increased hiring. And increased hiring and smaller applicant pool leads to — increased wages.
And with that, we are off to the races. The Democrats are lauding the act, stating the good news only gets better. The Republicans are screaming that the bill is killing jobs, the middle class and small employers.
With the report released just days ago, this debate is going to continue for some time with both sides fighting passionately for what they believe.