After Medicare was added in the 1960s, Obamacare is the biggest social legislation carried out since then. In 2010, it was signed by the President Barack Obama which aimed to decrease the amount of unremunerated care an average US family pays by advising everyone to have health insurance or to pay a penalty as a tax. However, it has invited intense debate from all over the world. Is it beneficial for the economy? How is the economy taking it? Let’s see what the economy of the country reflects.
- The Obamacare law says that employers having more than 50 employees, working for more than 30 hours in a week must be provided with a health insurance policy by the firm or should be given money to cover expenses related to healthcare. For business owners, bearing the additional cost of Obamacare is quite a tough task.
- As a result, employers are looking for ways to avoid it- by cutting their workforce, reducing working hours. This, in turn, would cause uncertainty among business owners which businesses do not accept. Since the business forecasting depends on analysis. And if analysis shows a potentially negative outcome, then it’s not what a good environment for a business community looks like.
- Businesses responded by cutting off workers and moving the rest to part-time jobs. This resulted in a contracting economy and a struggling private sector.
- Critics have argued that Obamacare would destroy jobs which will contribute to the growing unemployment. Though there are reports of full-time jobs increasing in number, there are still reports of employers cutting work hours from the employee schedule.
- In order to partially fund the Affordable Care Act, taxes were raised in areas of medical transactions including medical devices and sales of prescription. Anyone making more than $200,000 saw a rise in their tax liability.
- Businesses are expected to compete and if they feel that the government is anti-business, there would be lesser business startups and decreased growth since they’d be finding ways to lower the expenses.
Why not be friends with the American business or job creators? If the burden and taxation are reduced, the rate of establishment of businesses would increase with an increased amount of jobs for the people of America. With an increase in employment opportunities, the economy will witness a boost.