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February 2014 Archives

Employment and the Affordable Care Act

The good news about the affordable care act is that millions more people will have access to affordable health care. But the bad news is....well, the bad news isn't so bad. This week media and some conservatives seized on a GAO report showing Americans will work less under the affordable care act. Some ACA critics attacked the report as proof the ACA is causing job loss. But the report actually estimates that people will work less because they will choose to supply less labor. Why? Because they will now have the choice to do so - without the threat of lost healthcare coverage. Another benefit described by Paul Krugman in a recent NY Times column - a reduced labor supply will actually lead to higher wages.

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