CNN provided good reporting on CBO report on Obamacare job impact.
It was a foregone conclusion that Fox News would misrepresent the latest CBO Report. It was more disappointing, however that even Chuck Todd at MSNBC was less than clear in interpreting the report. He was more concerned with how it would be interpreted. He should have been more concerned with his duty as a professional journalist. Inform his viewers objectively.
That tweet gives a false impression. Coming from a ‘journalist’ it does more to confuse than to inform. It must be repeated. For the most part, one should get information from reputable blogs and websites. The traditional media is useless for fact based and accurate information.
CNN’s Carol Costello got it right in her report this week. The CBO Report said the following.
How Much Will the ACA Reduce Employment in the Longer Term?
The ACA’s largest impact on labor markets will probably occur after 2016, once its major provisions have taken full effect and overall economic output nears its maximum sustainable level. CBO estimates that the ACA will reduce the total number of hours worked, on net, by about 1.5 percent to 2.0 percent during the period from 2017 to 2024, almost entirely because workers will choose to supply less labor—given the new taxes and other incentives they will face and the financial benefits some will receive. Because the largest declines in labor supply will probably occur among lower-wage workers, the reduction in aggregate compensation (wages, salaries, and fringe benefits) and the impact on the overall economy will be proportionally smaller than the reduction in hours worked. Specifically, CBO estimates that the ACA will cause a reduction of roughly 1 percent in aggregate labor compensation over the 2017–2024 period, compared with what it would have been otherwise. Although such effects are likely to continue after 2024 (the end of the current 10-year budget window), CBO has not estimated their magnitude or duration over a longer period.
The reduction in CBO’s projections of hours worked represents a decline in the number of full-time equivalent workers of about 2.0 million in 2017, rising to about 2.5 million in 2024. Although CBO projects that total employment (and compensation) will increase over the coming decade that increase will be smaller than it would have been in the absence of the ACA. The decline in fulltime-equivalent employment stemming from the ACA will consist of some people not being employed at all and other people working fewer hours; however, CBO has not tried to quantify those two components of the overall effect. The estimated reduction stems almost entirely from a net decline in the amount of labor that workers choose to supply, rather than from a net drop in businesses’ demand for labor, so it will appear almost entirely as a reduction in labor force participation and in hours worked relative to what would have occurred otherwise rather than as an increase in unemployment (that is, more workers seeking but not finding jobs) or underemployment (such as part-time workers who would prefer to work more hours per week).
While others hyperventilated, CNN’s Carol Costello reported. When the traditional media get it right, we should let them know and encourage them to do the right thing.
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Presumably, “the effect of pulling 2.5 million people out of the workforce” would to increase competition for workers and result in higher wages. That’s the problem: the moneyed interest aren’t interested in competition; they want a leveraged playing field.