Today, someone sent me a quotation from my favorite economist:
“Permanent mass unemployment destroys the moral foundations of the social order. The young people, who, having finished their training for work, are forced to remain idle, are the ferment out of which the most radical political movements are formed. In their ranks the soldiers of the coming revolutions are recruited.”
Thus spake Ludwig von Mises. I was reminded of this quote when I saw, not only is Reuters admitting what Obamacare is doing to the US economy, but that the liberal Huffington Post is headlining the news: “75 Percent Of Jobs Created This Year Were Part-Time Due To Weak Economy, Obamacare Concerns.”
“Executives at several staffing firms told Reuters that the law, which requires employers with 50 or more full-time workers to provide healthcare coverage or incur penalties, was a frequently cited factor in requests for part-time workers. A decision to delay the mandate until 2015 has not made much of a difference in hiring decisions, they added.”
If anyone in the Obama Administration thought that delaying the mandate would change employer behavior, they are demonstrating the difference between a politician and a business owner. A business owner is not appointed to temporary office. His financial fortunes are actually tied to his business. He has to be thinking about and preparing for the future as best he can. Delaying the hammer-blow for one year isn’t likely to make a businessman get stupid and start hiring full time workers for 2014.
Reuters tries to give the President a lifeline, of course: “Obamacare is only one factor. The surge in part-time employment also reflects an economy that has struggled to maintain decent growth.”
But how do we know that the employer mandate isn’t the drag that keeps everything else from growing? Notice the perversity of this excuse. If only some other part of the economy was causing growth, then employers we wouldn’t see so much damage from Obamacare. But that proves that Obamacare, rather than being an economic fix, is actually economic damage. No one is saying that Obamacare is significantly helping but people don’t notice it because of the bad economy. No. They are admitting that Obamacare is hurting jobs and then saying that it wouldn’t seem as bad if we were still in the boom of the nineties.
Maybe there was a boom in the nineties in part due to a lack of Obamacare.
And remember, everyone knew the economy was hurting and they passed Obamacare anyway. They even said that Obamacare would help the economy:
“Former President Bill Clinton told anxious Senate Democrats on Tuesday to pass a health care bill soon because the U.S. economy can’t resist the toxic combination of exorbitant medical costs and nearly 50 million uninsured for much longer. ‘My argument was that this is an economic imperative,’ Clinton said after the closed-door meeting.”
The “toxic combination” turned out to be Obamacare, just like conservatives warned.