Obamacare is Downsizing the American Dream

The American Dream—which generations of Americans have enjoyed for decades—is quickly dying under President Obama’s watch. John Melloy writes for CNBC:

“The American Dream used to be a house to call your own that you paid for with a steady paycheck after an honest day’s work. But in this post-financial-crisis nation, the dream for many now means having a part-time job and being able to rent an apartment.

And with unemployment and wages stagnant, as well as uncertainty about the costs of the new health care act for employers, the pared-down expectations may be a trend for years to come.”

A house and a full-time job have been downsized to an apartment and a part-time gig. Paychecks have grown smaller. Unemployment has grown larger. And there is little on the horizon that portents any of that will change. The liberal conceit that government can guide a nation to prosperity has done just the opposite, it has strangled the very engines of commerce that made this country great.

Although there are many culprits for the general economic malaise that pervades the United States, one of the primary ones is Obamacare. The bill, which was sold as a method to give everyone health insurance coverage, has predictably been more effective at preventing many from finding work. Sally Pipes reports for Forbes:

Earlier this month, the Fed released its latest “beige book” – a monthly report on economic conditions across the country. The book noted that employers have “cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff.”

The more businesses learn about the president’s health reform law, the more they’re coming to realize that “affordable care” is the last thing it will provide. And that’s in large part due to the multibillion dollar tax that Obamacare is set to levy on health insurance companies.”

A separate provision of the law, which mandates that employers with more than 50 employees provide coverage to full time workers, is also hurting the job market.

“Anecdotal evidence suggests that some retailers and restaurant chains have already started to limit employees to working 30 hours or less per week,” wrote Capital Economics last month.

One reason employers are being forced to game the system is that offering coverage to employees is much more expensive than it was previously. That’s because Obamacare set minimum benefit levels, which while ensuring robust coverage (often above what an employee may need), dramatically raise the price of plans. As a result, businesses will either hire fewer workers, require greater health care contributions, reduce pay to make up for health care costs, or ask their employees to seek insurance on the individual exchanges.

That last option may not be so bad if numerous other Obamacare rules, the underwriting prohibition and age-rating reduction, chief among them, weren’t conspiring to dramatically hike the cost of individual plans. Just this month, Ohio insurance companies released their rate filings for plans to be offered on the exchange and saw an 88 percent increase relative to 2013. In other words, prices are set to double in just one year!

We are at risk of permanently downsizing the American Dream. Liberal policies are pushing us towards smaller homes, smaller paychecks, and ultimately, smaller hopes for the future. Many things must be done to avert this course toward stagnation, but foremost amongst the list is stopping the harmful effects of President Obama’s fatally flawed health care bill.