Testifying today before the
House Budget Committee, Congressional Budget
Office (CBO) Director Doug Elmendorf confirmed
that Obamacare is expected to reduce the number
of jobs in the labor market by an estimated
800,000. Here are excerpts from the exchange:
Chairman [Paul] Ryan:
“[I]t’s been argued...that the new
health care law will create jobs and
increase labor force participation.
But if I recall from your analysis,
it was quite the opposite. Is that
not the case?”
Director [Douglas] Elmendorf
: “Yes.”...
Rep.
[John] Campbell: Thank you,
Mr. Chairman, we'll -- and Dr.
Elmendorf -- and we'll continue this
conversation right now. First on
health care, before I get to --
before I get to broader issues, you
just mentioned that you believe --
or that in your estimate, that the
health care law would reduce the
labor used in the economy by about
1/2 of 1 percent, given that, I
believe you say, there's 160 million
full-time people working in '20-'21.
That means that, in your
estimation, the health care law
would reduce employment by 800,000
in '20-'21. Is that correct?
Director Elmendorf: Yes.
The way I would put it is that we do
estimate, as you said,
that...employment will be about 160
million by the end of the decade.
Half a percent of that is 800,000.
