Fewer Jobs + More Obamacare = American Economy
The U.S. Chamber of Commerce Foundation reads the Internet so that you don’t have to, sharing a short list of curated blog posts for your Friday reading.
Stagnant GDP growth is not creating enough jobs for a strong middle class to exist, according to a new UCLA report. As the report’s author notes, “That has long-term implications in the face of technological advancements that continue displacing workers. … And the country's education system isn't adequately developing the workforce of the future.”
Based on demographic numbers, we may not see much new monthly job growth. A report by the Chicago Fed showed that while we once needed 150,000 new jobs a month to keep pace with population growth, we will soon only need 80,000 per month; by 2016, that number will be closer to 60,000. As Matt O’Brien says, “Welcome to the end of job growth.”
According to McKinsey, Big Data could cut $300 billion in healthcare costs and dramatically improve patient outcomes.
Avik Roy recalculates the cost of Obamacare on a young, healthy, basically entry-level male, and it isn’t pretty. The potential for a large rate increase will be a significant emerging issue for individuals and their employees in the next couple of years:
“In the healthy population of 25-year-old non-smoking males—the focus of my original study—more than 90 percent of the subsidy-eligible population would face higher premium costs under Obamacare, even when you take the subsidies into account. As you will see in the chart below, the point at which Obamacare starts to cost more is at 162% of the federal poverty level, or $18,558 in 2013 numbers. In other words, if you’re a healthy, non-smoking 25-year-old man, and you make more than $18,558, your health insurance will cost more under Obamacare—possibly a lot more.”