Obamacare: Incentive To Remain Poor

Carrot and StickLiberal Policies And Noble Intentions

I don’t buy into the notion that liberals are trying to enact policy that effectively enslaves the very people they mean to help – almost to a person the liberals that I know truly have the best interests of humanity in their heart.

They’re wrong – of course.  But they are well intentioned.

However, that doesn’t change the fact that those policies are, at their core, poisonous to the very segment of the population they mean to help.

Obamacare Hurts The Poor

I know, I KNOW, that the goal of Obamacare  is to help the lives of those Americans who might be struggling.

I know it.

But what it does is hurt the very people it intends to help:

The effect is principally on the labor supply of lower wage workers. The reason is what the Affordable Care Act does is provide subsidies focused on lower and more middle income people to buy health insurance, and in order to encourage sufficient number of people to buy an insurance like health insurance the subsidies are fairly large in dollar terms. Those subsidies are then withdrawn over time for people as their income rises. By providing heavily subsidized health-insurance to people with very low income and withdrawing those subsidies as income rises, creates a disincentive for people to work, relative to what would have been the case in the absence of that act.

What people in the segment of lower supply workers need is an incentive to work and work hard.  They need to work harder and more – to earn experience and skills that will get them promotions and better jobs.

Obamacare dampens that progression.

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