The economy was on a path to recovery in early 2010, but ObamaCare put a stop to that almost immediately. The Heritage Foundation gives us all the details. Here is just a portion:
Obamacare Discourages Hiring
In March 2010, Congress passed President Obama’s health care reform legislation. The bill had appeared in serious jeopardy, and after the upset special election victory of Senator Scott Brown (R–MA), many analysts expected the bill to fail. Instead, it became law.
The law discourages employers from hiring in several ways:
- Businesses with fewer than 50 workers have a strong incentive to maintain this size, which allows them to avoid the mandate to provide government-approved health coverage or face a penalty;
- Businesses with more than 50 workers will see their costs for health coverage rise—they must purchase more expensive government-approved insurance or pay a penalty; and
- Employers face considerable uncertainty about what constitutes qualifying health coverage and what it will cost. They also do not know what the health care market or their health care costs will look like in four years. This makes planning for the future difficult.
Recovery Stalls Post–Obamacare
Within two months of Obamacare’s passing, the recovery stalled. Figure 1 shows net private-sector job creation from January 2009 onward. The red line shows the trend in job creation before and after April 2010. Private-sector job creation improved by an average of 67,600 jobs per month before April 2010.That month, private-sector employers added 229,000 net jobs.
The bullet point about employers with fewer than 50 employees not expanding because they would be hit with massive health care costs is a no-brainer. Why would any business owner undermine his or her own business after investing so much time and money to make it profitable?
Be sure to read the Heritage Foundation’s entire article because it’s filled with all kinds of statistics and charts that show how Obama killed his own economic recovery.