The New York Times vs. the Federal Reserve on Jobs

English: President Barack Obama, Vice Presiden...For the last several years there’s been a debate raging about whether ObamaCare is killing jobs. Republicans, who are more likely to have actual experience in the real world, have been predicting since ODay One of ObamaCare that it would be a job killer.

Democrats, who tend to try to create their own reality – “We have to pass the bill to find out what’s in it” – insist that ObamaCare will lower overall medical care cost and will be a net job creator.

Needless to say, the Obama servicing New York Times got involved in the tiff. Back on October 5th of last year – when the ObamaCare website was still totally dead – here’s the wisdom they brought bear.

FOR YEARS, Republicans have labeled President Obama’s Affordable Care Act a “job killer.” But as the essential elements of the law begin to phase in, conservative critics have become more specific, latching onto alarming stories about certain businesses cutting employees’ hours or declining to hire workers — all, apparently, because of the health-care law’s dictates.

As usual with Obamacare, it’s not that there isn’t something to be concerned about. But Republicans have blown the law’s potential problems so far out of proportion that their attacks sound like a “Saturday Night Live” parody.

[…]

There are other concerns. Some observers argue that uncertainty about how much health-care premiums will rise under the law could discourage hiring, at least until the cost picture is clearer to businesses. But there will be countervailing effects. People won’t be as locked into their jobs, since they won’t have to stick with certain employers to ensure they have health-care coverage. That will make it easier for people to move into jobs they’re better at, and it could promote entrepreneurship. With more reliable care, workers might better manage the symptoms of one-time or chronic illnesses, which could cut down on the number of sick days they take. And the health-care industry probably will hire more people.

The net effect is hard to predict exactly. But it won’t add up to anything close to Mr. Cruz’s employment apocalypse.

So, the New York Times says that, while the future is somewhat uncertain, it’s likely to be bright. Fewer sick days, portability of insurance, etc.

We could, and at some point probably will, rip the Times talking points to shreds. We’re not going to do that this evening. Rather, we’re going to let the Federal Reserve Banks make a different point for us.

Keep in mind that the October 5th Editorial was titled “The myth about job-killing Obamacare”.

The following is from the Fed’s January Beige Book. As heritage.org points out the Beige Book

…gathers anecdotal information on current economic conditions in its District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources.

Here’s what the regional banks have found…

Atlanta Fed: “On balance, many firms expressed continued hesitancy caused by concerns about healthcare reform in terms of their overall hiring plans” (p. VI-3).

Richmond Fed: “Employers continued to express concern about potential cost increases related to [Obamacare]” (p. V-4).

Chicago Fed: “Non-wage labor costs also increased, with a number of contacts reporting higher healthcare premiums” (p. VII-3).

Boston Fed: “Downside risks include the upcoming costs to businesses of compliance with [Obamacare] and the trend toward office downsizing on a space-per-person basis” (p. I-3).

Philadelphia Fed: “Firms also expected to see the largest increase in health benefits costs compared with other input and labor costs in 2014” (pp. III-1 and III-2).

Cleveland Fed: “A majority of our contacts cited rising healthcare insurance premiums as a concern” (p. IV-2).

Keep in mind, also, that larger businesses where about 95% employer provided insurance comes from haven’t even seen what they’re really facing yet. That won’t happen until the third quarter when insurance companies finalize and submit their rates/plans to the state insurance commissioners.

We can’t wait to see how long it takes for the major media to discover this completely unexpected occurrence and grill the President about it at his next news conference.

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Posted by on February 4, 2014.
Filed under Economics, Obamacare.
Tagged with: .
Michael Becker is a long time activist and a businessman. He's been involved in the pro-life movement since 1976 and has been counseling addicts and ministering to prison inmates since 1980. Becker is a Curmudgeon. He has decades of experience as an operations executive in turnaround situations and in mortgage banking. He blogs regularly at The Right Curmudgeon, The Minority Report, Wizbang, Unified Patriots and Joe for America. He lives in Phoenix and is almost always armed.

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  • Hank_M

    Nice article by the NY Times, based on unicorns and fairy dust.
    Look at what they wrote. “it could promote entrepreneurship.”
    “workers might better manage”, “could cut down on”, “industry probably will hire”…

    Sure. And Obama and the dems might actually do something right for a change.

    As for the MSM discovering this, forget it. It’s Chris Christie all the time.

    • http://www.rustedsky.net JLawson

      Hell, I could find a buck on the street and win the MegaMillions lottery.
      The odds, however, are very much against it.

  • warnertoddhuston

    Wastelake

    Blah,blah,blah, I’m smarter than this blogger, bah,blah,blah, all Republicans are idiots, bah,blah,blah, Glenn Beck and stuff, bah,blah,blah, Christine O’Donnell wouldn’t know, bah,blah,blah, bah,blah,blah, I am still smarter than all of you, bah,blah,blah, bah,blah,blah, Glenn Beck kool aide, bah, blah,blah, bah, blah,blah, did I mention I’m smarter than you? bah,blah,blah, bah,blah,blah, you are all stupid. Blah.

    • Michael Becker

      Warner! Congratulations on your promotion. I’ll enjoy reading you on the hallowed pages of the Times! Or is it the Post?

      Anyway, it’s well deserved.

  • Lawrence Westlake

    You have to love that Times article referencing SNL parody when the article itself is an SNL-style parody of itself. Is there even a word for that? Ironicparody? In any event, it goes without saying that Obamacare has been a disaster for job creation. And the worst is yet to come.

    • Jwb10001

      It would be embedded parody. Speaking of which you should read the comments here, the one right before yours especially…. dumb ass.

  • GarandFan

    “We can’t wait to see how long it takes for the major media to discover
    this completely unexpected occurrence and grill the President about it
    at his next news conference.”

    No, they’ll just ask how he keeps such a sharp crease in his trousers. You know, ‘the important stuff’.

  • Joe_Miller

    Suppose one wanted to destroy the economy. What would one do differently?

  • alohasteve