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Home Publications Blogs Beat the Press Would Employers Avoid Hiring Now Because of the Health Care Bill?

Would Employers Avoid Hiring Now Because of the Health Care Bill?

Sunday, 16 January 2011 09:53

That's what Representative Vicky Hartzler (R-Missouri) claims is going on in her district. The article could have noted that no evidence supports this claim. In other words, there is no increase in average hours per worker, no surge in temp employment, nor are the businesses most affected by the law (those with around 50 employees) in any apparent way less prone to add workers than larger or smaller firms.

It is also worth noting that most of the requirements of business, like buying insurance for workers or paying a penalty, don't kick in until 2014. Four million workers leave their jobs every month. If a firm is worried that a requirement that kicks in 2014 will make it unprofitable for it to have additional workers on its payroll at that time, there would be little reason for it not to hire in 2011, since it will almost certainly lose workers between now and 2014 which will allow it to get back to the size it desires when the new requirements go into effect.

Comments (3)Add Comment
written by izzatzo, January 16, 2011 1:18
... there is no increase in average hours per worker ...

This is big commie lie. Already in Hartzler's district there is a surge in average hours worked by health care workers due to the shortage created by health care reform - exactly what Republicans predicted when government tampers with free market prices by setting them too low.

Further, forcing insurers and health providers to participate in exchanges that allows consumers to see actual prices and make comparative choices is one more step down the slippery road of socialism and free choice.

Stop free trade transparency of health care reform so employers will hire again. Health care prices must remain secret so the worker shortage in health care can be alleviated, allowing health care costs to fall to the same low levels they were before reform and restore the economy to full employment.
written by S.D. Jeffries, January 16, 2011 11:29
Republicans have come up with quite a few reasons why (1) businesses are not hiring and (2) why everybody should hate and fear "Obamacare." But the anecdotal "reasoning" for both at the same time utilized by Rep. Hartzler and duly reprinted by WaPo is the most ludicrous yet. How difficult is it for both representatives and newspaper reporters to understand what any honest businessperson will tell them: that the lack of hiring stems from a lack of DEMAND? Republicans are looking for any excuse to blame Obama, and the media seems to ignore any evidence they don't want to hear. This degree of dishonesty just guarantees the job picture won't improve anytime soon.
written by save_the_rustbelt, January 17, 2011 1:16
Economists attempt to understand business thinking by sitting in offices reading reports written by government economists and academic economists.

Anyone who actually talks to business owners and managers is sneered at for considering "anecdotal evidence."

Little wonder economists are so clueless about what is happening in the labor market.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.