Federal Reserve: Obamacare Scaring Employers

I’ve already mentioned that Obamacare is a Predator Drone that hunts down jobs. Under the Affordable Care Act, businesses must pay for the health care of full time employees, and “full time” is defined as thirty hours or more. Thus, we are already seeing employees downgraded to part-time. SeaWorld is just one example among many of declining full-time jobs and increasing part-time jobs.

Now we are getting confirmation from the Federal Reserve. As much as I would like to end the Fed, I’m pretty happy to get someone willing to collect the statements from different parts of the country about how employers view the current economy. The Heritage Foundation blog provided some quotations:

  • 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)

The Atlanta Federal Reserve Bank’s statement is pretty explicit. “Continued hesitancy” means people are holding off hiring. Likewise, the Boston branch’s statement about “the trend toward office downsizing on a space-per-person basis” also speaks of reduced employment (unless they are claiming that they are only putting people in smaller spaces, which I doubt).

But all of the regional Feds found people concerned about costs or reporting higher costs. This is simply not an environment in which employers want to hire new full-time employees.

Yet this President claims that he wants to address jobs and income inequality.