Negative Impacts Of Obamacare On The Economy Of The United States

In the history of the United States one of the important acts, that people and economists still judge, was taken by president Barack Obama on March 23, 2010 which is also known as The Patient Protection and Affordable Care Act. Obamacare was enacted by the congress and signed by president Obama. Obamacare is a healthcare reform and its main goal is to make healthcare affordable for more people. Nowadays, people and economists are still judging Obamacare's effects on the economy, but there are myriad reasons that Obamacare negatively affected the Economy.

One of the reasons that Obamacare had a negative effect on the economy is that It leads the employment rate to decrease. “Based solely on recent economic growth, the ACA has subtracted $250 billion from GDP.... The incentive changes embedded in the ACA, based on past incentive changes, are expected to ultimately reduce employment by 3 percent and GDP by 2 percent. That would be about 4 million jobs and more than $300 billion per year”. Based on the quote from the article, Obamacare has negatively affected the economy, since it is expected that the employment will decrease by 3 percent as well as GDP by 2 percent.

The high unemployment rate has a bad effect on the country’s economy, since people pay less taxes and more people become addicted to the benefits from the government. In addition, the unemployed are also unable to purchase as many goods, so their spendings is low, which is also bad for businesses. The main claim of the opponents of Obamacare is that the legislation can destroy the jobs. The number of full-time jobs has already gone up in recent years, but there are still reports of businesses cutting hours from employee schedules.

Another reason that Obamacare had a negative effect is that, Businesses are trying to cut employee hours to avoid covering employees. Cutting employer hours and firing a lot of people for business would be the only way not to have a crisis, but the will may cause a negative effect on the U.S since the unemployment rate will increase as well as people who will become economically addicted to the government. The main claim of the opponents of Obamacare is that the legislation can destroy the jobs. “Based solely on recent economic growth, the ACA has subtracted $250 billion from GDP. At that pace, the cumulative loss by the end of the decade will exceed $1.2 trillion.” Based on this quote and data, ACA already subtracted more than $250 billion and if it will keep this pace, the subtraction will exceed $1.2 trillion. This shows that Obamacare negatively affects the economy.

According to the The Heritage Foundation, The problem with the skewing of health care costs is that while most people’s health spending is relatively limited, it remains very expensive to provide care for the costliest 10 percent. Another reason is that As a result, the tax hikes in PPACA will cause suppressing wages. These economic system-slowing guidelines and PPACA tax increases will impede an already staggering recovery. Also, Taxes transfer money from private businesses to the less efficient public sector, which would also collapse the economy, since less taxes for a government means less budget.

Congress ought to levy excessive tax prices to take greater americans’ cash, and this has a number of terrible implications. better tax fees decrease the incentives for people to work and keep more, both of which are crucial for monetary growth.

Another reason that Obamacare had a negative impact is that It caused the healthcare system to become more expensive. The problem with the skewing of health care costs is that while most people’s health spending is relatively limited, it remains very expensive to provide care for the costliest 10 percent. It not only has made a dramatic impact on the bottom line of businesses and individuals alike but also created higher costs for their insurance. In addition, millions have lost their insurance plans. That is because prior to the Affordable Care Act, they did not meet the standards for insurance coverage set forth in the government mandates. “Furthermore, the 30 million Americans who held earlier insurance plans lost them because they did not comply with the Affordable Care Act’s mandates for “minimum essential coverage”. Those are the guidelines that set forth how much coverage is the bare minimum to remain adequately provided for in case you need medical care.” According to this quote healthcare cost increased, and a lot of people lost their healthcare plans which is clearly a negative impact on the country since people won't be able to get good health care.

In conclusion, Obamacare had a negative impact on the US economy, since It lead to the high unemployment rate, high taxes and worse healthcare insurance plans. All these negatively affect not only the economy but the people as well.