Expect More Unemployment

Because of ObamaCare, that is. This is from Casey Mulligan:

02oct-economist-mulligan-blog480

Work incentives for low-wage workers are eroded more than 10 percent of their compensation over the next couple of years, compared with 5 percent for midwage workers. Before the Affordable Care Act, the compensation for each additional hour of work by a low-wage worker, as with midwage workers, was split 50 percent, on average, for employee and 50 percent for the government. Under the law, it will be 39-61.

Comments (14)

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  1. Jackson says:

    Can someone give me an explanation of what this means in a language other than economist?

  2. Billy says:

    Just goes to show the government is only interested in keeping around a permanent lower class that they can pander to.

    • Stewart T. says:

      An republicans are only interested in keeping around a lower class that they can get cheap labor from.

  3. Stewart T. says:

    If employers would pay their workers fairly then they wouldn’t need government help and there would be no talk of incentives.

    • Billy says:

      That’s not the issue; the issue is that workers are seeing more of what they earn go to the government rather than their checkbooks.

      • Stewart T. says:

        My point still stands. The government only takes that because they are giving the lower class what their employers won’t. If employers simply gave them that in the first place then the government wouldn’t need to step in.

        • Billy says:

          Spin it all you want, the issue remains that the government is taking money from those who can least afford to give it.

  4. Adam says:

    Workers should be the ones seeing the consequences of their work, not government.

    • Stewart T. says:

      Workers are seeing the consequences of their work, it’s just being transferred to areas that aren’t direct cash.

      • Adam says:

        Shouldn’t they be free to make their own decisions about that?

        • Stewart T, says:

          Anyone who would choose not to have healthcare clearly can’t take care of themselves.

          • Adam says:

            That’s rather harsh. After all, people need to be free in controlling their own lives, even when that means they might not necessarily make the right decision. If we allow that all people are rational, it makes sense that maybe they have a different reasoning than us that is still sound.