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Obama Spins Subsidies Both Ways

The Obama Administration is heralding his monumental achievement of freeing people from the necessity of working a productive job to maintain health care for their family after the CBO (Congressional Budget Office) came out with a new report forecasting future labor market activity. The report states:

The Affordable Care Act (ACA) will tend to reduce participation, with the largest impact stemming from new subsidies that reduce the cost of health insurance purchased through exchanges. Specifically, by providing subsidies that decline with rising income (and increase with falling income) and by making some people financially better off, the ACA will create an incentive for some people to choose to work less. CBO's PDF of full report

Although I believe that it is due to contempt for the people of this country, in continual acts of treason, that the press spews the government and corporate propaganda for them; Peter Schiff at least calls them out for being too dumb to even see the hypocrisy of the Obama Administration. The article from Schiff points out how the ACA subsidy and unemployment extension subsidy work exactly the same, to incentivize people to stay out of or to leave the labor force.

The subsidies built into Obamacare are exceptional in their severity. As has been noted by many observers, even relatively small increases in income can result in substantial losses in federal subsidies. With health care costs eating up increasingly large portions of personal incomes, it is easy to see why health care subsidies could be the deciding factor for many people to stay home.

But this dynamic is the opposite of what the President and his allies are arguing in the ongoing debate about extending unemployment benefits. Republicans have pointed out that people are discouraged from taking marginal jobs because weekly government checks represent a more attractive option. The White House has responded with deep derision, with the President himself saying that he never met a single American who would prefer a check from the government to a check from an employer. (Perhaps he should get out more?)

I like how Peter lays things out so that even children are able to understand the argument and see the hypocrisy. It's a good article to share.
Read it Here



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