White House Council of Economic Advisers and Nonpartisan Congressional Budget Office Come at Obamacare Report from Opposite Schools of Economics

February 5, 2014

Whether You Call It a “Choice” or a “Disincentive,” 2.5 Million Fewer Full-Time Employees Is Bad For the Economy 

The Congressional Budget Office updated baseline yesterday delivered, “The Worst Headline for Democrats This Year,” estimating that the health care law would lead to 2.5 million fewer full-time employees. Testifying at the House Budget Committee CBO Director Doug Elmendorf explained, “The [Affordable Care] Act creates a disincentive for people to work relative to what would have been the case in the absence of that Act.” When attempting to defend the same report yesterday, the Chairman of the White House Council of Economic Advisers Jason Furman argued, “When you look at the Affordable Care Act as a whole, it’s good for the economy and gives more choices to people.”

Whether you call it a “disincentive” or a “choice,” Dana Milbank explains in The Washington Post, “This will inevitably be a drag on economic growth, as more people decide government handouts are more attractive than working more and paying higher taxes.”

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